Politics

Texas enacts sweeping tax relief and AI regulation laws amid federal clashes for 2026

Thursday, 8 January 2026 3:52AM UTC

Texas's latest legislative package, effective from January 2026, introduces significant property-tax reductions, new AI governance measures, and tighter local tax controls, potentially sparking legal battles with federal authorities.

Another package of Texas legislation took effect on January 1, 2026, extending a wave of tax and regulatory changes enacted by the 89th Legislature and special sessions last year, according to The Center Square. The latest tranche , described as 31 new laws , follows roughly 800 statutes that began on September 1, 2025, and continues a statewide shift emphasising property-tax relief and tighter rules for local taxing authority after public outcry over recent tax increases. [The Center Square]

The most visible change is House Bill 22, which exempts all intangible personal property from ad valorem taxation in Texas, explicitly covering items such as stocks and intellectual property rights including patents, copyrights and trademarks. According to the Legislative Budget Board’s fiscal note, the financial impact on state and local governments is expected to be negligible because virtually no taxable intangible personal property was being recorded under current law; the Texas Comptroller reported a single 2024 appraisal district record with a taxable value of $142,450. The bill takes effect on January 1, 2026. [The Center Square; Legislative Budget Board]

House Bill 9 substantially raises the business personal property exemption, increasing the threshold for small enterprises and thereby reducing taxable inventories and equipment. The Legislative Study Group’s floor report and advocacy coverage emphasise the scale of the change and the state’s plan to offset lost local school revenue; proponents including the National Federation of Independent Business framed the move as essential relief for small business owners. Voters also approved multiple constitutional amendments in November that collectively reduced or removed various tax burdens, the reporting shows. [The Center Square; Legislative Study Group; NFIB]

Lawmakers also targeted practices that allowed some local taxing entities to raise rates after disasters without voter approval. HB 30 tightens limits on post-disaster tax increases following allegations that an emergency clause loophole had been used to push property bills higher. Governor Greg Abbott has made further property-tax overhaul a stated priority for the next legislative session and his reelection campaign. Additional measures refining property-tax administration include bills on homestead reporting, appraisal of transferred land, postponement of delinquency dates, exemptions for certain charitable housing and burial properties, and adjustments to ad valorem rate calculations. [The Center Square]

Beyond taxation, the package covers several regulatory and public-safety areas. HB 149 establishes the Texas Responsible Artificial Intelligence Governance Act, creating an Artificial Intelligence Council, consumer protections and enforcement mechanisms, and banning AI-produced deepfake content that is sexually explicit, depicts child sexual abuse or is intended to manipulate human behaviour toward violence. The law also bans using AI to collect biometric data, while SB 2420 requires mobile app stores to verify users’ ages by a “commercially reasonable” method and mandates parental approval for minors. Legal commentators and policy watchers have noted potential conflicts with federal positions on AI regulation. According to the lead article, an executive order from President Donald Trump said “excessive state regulation thwarts” a national AI technological revolution and urged a federal approach over “State-by-State regulation by definition creates a patchwork of 50 different regulatory regimes that makes compliance more challenging, particularly for start-ups. Second, State laws are increasingly responsible for requiring entities to embed ideological bias within models.” The order directed the attorney general to form an AI Litigation Task Force to challenge state laws and asked the Commerce Department to evaluate state measures that conflict with federal policy, leaving open the prospect of litigation over Texas’s new framework. [The Center Square]

Other enacted statutes include SB 8, which sets a funding mechanism for sheriff’s offices that opt into a federal immigration enforcement programme provided they comply with its requirements by December 1, 2026, and SB 38, which creates a streamlined pathway for landlords to evict squatters. The legislative package also touches on workers’ compensation, insurance, continuing care facilities, severance tax exemptions for marginal oil and gas wells and civil penalties for violations, and technical changes for timberland appraisal and dealer inventory. Legal summaries of the 89th Legislature catalogue HB 22 among these broader reforms. [The Center Square; JDSupra]

Taken together, the new laws reflect a legislative agenda prioritising tax relief for property owners and businesses while asserting state-level regulatory control over emergent technologies and local governance practices. Implementation will now shift to appraisal districts, agencies, local taxing entities and the courts, where some provisions , particularly in AI regulation and federal-state overlaps , may face legal challenges or requests for federal review. Policy analysts note that, on the fiscal side, official estimates anticipate only modest budgetary effects from intangible-property exemption because of the minimal taxable base recorded before repeal. [Legislative Budget Board; JDSupra; Texas Policy Research Initiative]

📌 Reference Map:

##Reference Map:

^[1] (The Center Square) - Paragraph 1, Paragraph 2, Paragraph 3, Paragraph 4, Paragraph 5, Paragraph 6, Paragraph 7
^[2] (Legislative Budget Board) - Paragraph 2, Paragraph 8
^[3] (Texas Policy Research Initiative) - Paragraph 2, Paragraph 8
^[4] (JDSupra) - Paragraph 7, Paragraph 8
^[5] (AOL) - Paragraph 1
^[6] (Legislative Study Group) - Paragraph 3
^[7] (NFIB) - Paragraph 3

Source: Noah Wire Services

More on this

https://blackchronicle.com/southwest/texas/31-new-now-in-effect-in-texas/ - Please view link - unable to able to access data
https://capitol.texas.gov/tlodocs/89R/fiscalnotes/html/HB00022I.htm - This fiscal note from the Legislative Budget Board assesses the financial implications of House Bill 22, which exempts all intangible personal property from ad valorem taxation in Texas. The analysis indicates that the bill is expected to have no significant fiscal impact on the state or local governments. It notes that, under current law, only a small portion of intangible property—primarily owned by certain savings and loan corporations and insurance companies—is subject to taxation. The Texas Comptroller of Public Accounts reports that for the tax year 2024, appraisal district data recorded only one intangible personal property record with a taxable value of $142,450. Given this minimal taxable value, any revenue loss to local governments would be negligible. Furthermore, the costs of implementing this tax exemption are not expected to be significant. The bill is set to take effect on January 1, 2026. ([capitol.texas.gov](https://capitol.texas.gov/tlodocs/89R/fiscalnotes/html/HB00022I.htm?utm_source=openai))
https://www.texaspolicyresearch.com/bills/89th-legislature-hb-22/ - This article from the Texas Policy Research Initiative provides an overview of House Bill 22, which exempts all intangible personal property from ad valorem taxation in Texas. The bill aims to eliminate taxation on intangible assets such as stocks, intellectual property rights like patents, copyrights, and trademarks. The article highlights that the bill is expected to have no significant fiscal impact on the state or local governments, as only a minimal amount of intangible property is currently subject to taxation. The bill is set to take effect on January 1, 2026. ([texaspolicyresearch.com](https://www.texaspolicyresearch.com/bills/89th-legislature-hb-22/?utm_source=openai))
https://www.jdsupra.com/legalnews/summary-of-legislation-relating-to-1225734/ - This article from JDSupra provides a summary of legislation enacted by the 89th Texas Legislature, including House Bill 22. The article notes that HB 22 establishes that all intangible personal property is exempt from ad valorem taxation in Texas by repealing sections of the Tax Code that previously allowed for the taxation of certain intangible assets. The bill is set to take effect on January 1, 2026. ([jdsupra.com](https://www.jdsupra.com/legalnews/summary-of-legislation-relating-to-1225734/?utm_source=openai))
https://www.aol.com/news/31-now-effect-texas-211000417.html - This article from AOL News reports on 31 new laws that took effect in Texas as of January 1, including House Bill 22. The article notes that HB 22 eliminates all taxation on intangible personal property in Texas, including stocks and intellectual property rights like patents, copyrights, and trademarks. The article also mentions that HB 9 increases the amount of assets small businesses can exempt from property taxes, up to $125,000. ([aol.com](https://www.aol.com/news/31-now-effect-texas-211000417.html?utm_source=openai))
https://www.texaslsg.org/wp-content/uploads/2025/04/4.2-Calendar.pdf - This document from the Legislative Study Group provides a floor report from April 2, 2025, detailing various legislative actions, including House Bill 9. The report notes that HB 9 increases the Business Personal Property (BPP) tax exemption from $2,500 to $250,000 for all taxing units, and makes it a flat exemption so that all businesses can benefit. The report also mentions that the State would provide $566.3 million to make school districts whole for lost revenue. ([texaslsg.org](https://texaslsg.org/wp-content/uploads/2025/04/4.2-Calendar.pdf?utm_source=openai))
https://www.nfib.com/news/press-release/texas-small-business-owners-applaud-introduction-of-hb-9-to-provide-meaningful-inventory-tax-relief/ - This press release from the National Federation of Independent Business (NFIB) announces strong support for HB 9, a bill to raise the personal property tax exemption for businesses to $250,000, up from $2,500. The release highlights that this much-needed relief would strengthen the local economy and help small business owners continue to create jobs and invest in their communities. ([nfib.com](https://www.nfib.com/news/press-release/texas-small-business-owners-applaud-introduction-of-hb-9-to-provide-meaningful-inventory-tax-relief/?utm_source=openai))

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 8

Notes: The narrative reports on 31 new laws taking effect in Texas on January 1, 2026. Similar information has been reported by reputable sources such as the Dallas Morning News and NBC 5 Dallas-Fort Worth. ([dallasnews.com](https://www.dallasnews.com/news/politics/2026/01/02/new-texas-laws-took-effect-on-jan-1-what-to-know/?utm_source=openai)) The earliest known publication date of substantially similar content is December 2, 2025. ([dallasnews.com](https://www.dallasnews.com/news/texas/2025/12/02/new-texas-laws-in-effect-december-january//?utm_source=openai)) The narrative includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged. Additionally, the narrative includes a reference map with links to various sources, indicating a reliance on existing reports. ([sll.texas.gov](https://www.sll.texas.gov/spotlight/2024/12/new-laws-effective-january-1st-2025/?utm_source=openai)) The presence of a press release from The Center Square suggests that the narrative may be based on a press release, which typically warrants a high freshness score. ([sll.texas.gov](https://www.sll.texas.gov/spotlight/2024/12/new-laws-effective-january-1st-2025/?utm_source=openai))

Quotes check

Score: 7

Notes: The narrative includes direct quotes from The Center Square, Legislative Budget Board, Legislative Study Group, National Federation of Independent Business, and other sources. The earliest known usage of these quotes is from December 2, 2025. ([dallasnews.com](https://www.dallasnews.com/news/texas/2025/12/02/new-texas-laws-in-effect-december-january//?utm_source=openai)) Identical quotes appear in earlier material, indicating potential reuse. The wording of the quotes varies slightly in different sources, suggesting some paraphrasing. No online matches were found for certain quotes, raising the possibility of original or exclusive content.

Source reliability

Score: 6

Notes: The narrative originates from The Center Square, a news outlet known for its conservative perspective. While it has a public presence, its credibility may be questioned due to potential biases. The Legislative Budget Board and Legislative Study Group are reputable organizations, lending credibility to the information presented. The National Federation of Independent Business is a well-known advocacy group, but its perspective may be influenced by its interests.

Plausability check

Score: 8

Notes: The narrative presents detailed information about 31 new laws taking effect in Texas on January 1, 2026, covering various areas such as taxation, artificial intelligence, and property rights. These claims are corroborated by multiple reputable sources, including the Dallas Morning News and NBC 5 Dallas-Fort Worth. ([dallasnews.com](https://www.dallasnews.com/news/politics/2026/01/02/new-texas-laws-took-effect-on-jan-1-what-to-know/?utm_source=openai)) The language and tone are consistent with typical legislative reporting, and the structure is focused on the legislative changes without excessive or off-topic detail.

Overall assessment

Verdict (FAIL, OPEN, PASS): PASS

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: The narrative provides a comprehensive overview of 31 new laws taking effect in Texas on January 1, 2026. While some content appears recycled from earlier reports, the inclusion of updated data and references to reputable sources lend credibility to the information presented. The reliance on a press release from The Center Square suggests a high freshness score, but the conservative perspective of the outlet may influence the presentation of information. Overall, the narrative is plausible and aligns with information from other reputable sources.

Texas legislation
Tax reform
AI regulation