top of page

Top 5 New Laws in Texas for 2024

Happy New Year! Sorry that this post is coming in late. As always, January 1 brings with it a slate of new laws. My criteria here are: what I thought was interesting, what will impact my clients the most, and how broad the change will be in general. Unless otherwise stated, these laws went into effect on January 1, 2024.


And I have done the same for California here.


I'm going to start with an honorable mention: the federal Corporate Transparency Act. I've addressed the federal Corporate Transparency Act a few times before. Most entities formed on or after January 1, 2024 will have 90 days to report information related to their "beneficial owners" to the federal government. I recommend you review prior blog posts covering it here, here, and here.


5. Transparency for Property Tax Information (HB 3273)


HB 3273 requires the chief appraiser of each property tax district provide property tax information on their websites, and that they inform taxpayers where to find that information. The information must be provided prior to September 1 by mail and email.


Previously, this information was mailed out on a postcard. This is a win for transparency, and a win for taxpayers.


4. Tax Exemption for Low-Income Developments (HB 4645)


The legislator recognized that housing is becoming scarcer in Texas, and low-income housing is no exception. HB 4645, which allows lessees of ground leases to receive tax exemptions for improvements on the property for construction of low-income housing.


Along with HB 1058 (below), Texas is taking serious steps towards making housing more available and more affordable, and using business incentives to make it happen.


3. YIMBY Housing Development (HB 1058)


As with so many other places, cities in Texas have a shortage of low-income housing. HB 1058 attempts to remedy the problem by providing tax credits for low-income housing developments. Investors for qualifying projects can obtain insurance and franchise tax credits.


Along with HB 4645 (above), the YIMBY ("yes in my backyard") folks scored a major win.


2. The Texas Business Court


It's finally here. The Texas Business Court will be created on September 1, 2024. The Texas Business Court will have concurrent jurisdiction with the state district courts for certain business matters in which the amount in controversy exceeds $5 million. This includes various securities matters, derivative proceedings, veil piercing, and other business- and corporate-specific issues.


The adoption of the Texas Business Court remains somewhat controversial. Some detractors insist that it's a solution looking for a problem. That said, it's here, it's happening, and I'm looking forward to seeing what they do.


1. Property and Franchise Tax Relief (SB 2, Proposition 4, SB 3)


The legislature adopted SB 2, which was approved by the voters as Proposition 4, and SB 3. Collectively, those acts amend the Texas Constitution, providing further protection and property tax relief to property owners, increasing the homestead exemption amount, and increasing the minimum income required to trigger franchise taxes.


In the coming years, it's going to be substantially cheaper (even cheaper than now) to own property and operate a business in Texas.


Conclusion


These are (in my opinion) the highlights. There are a number of others statutes, case law, and regulations affecting businesses in 2024 in Texas, and they are often industry-specific. It’s a good idea to check in with your business attorney to see if any other changes may affect your business.

Recent Posts

See All

Texas Business Courts – What, Why, and How?

In 2023, Texas adopted HB 19, establishing the Texas Business Courts ("TBC"). The TBC will operate in several metropolitan areas, the TBC will have specific jurisdictional and procedural rules, and th

Top 5 New Laws in California for 2024

Happy New Year! Sorry that this post is coming in late. As always, January 1 brings with it a slate of new laws. My criteria here are: what I thought was interesting, what will impact my clients the m

Comments


bottom of page