Introduction
Business owners in Texas may soon see relief from one of the most controversial local taxes—the Business Personal Property (BPP) tax.
In 2025, Texas legislators are considering a moratorium or rollback of the BPP tax. For startups, SaaS firms, and manufacturers with high equipment costs, this could mean major savings.
Here’s what you need to know about the current tax, proposed changes, and how to prepare.
Texas Code References
- Texas Tax Code §11.01 & §22.01 – BPP property and rendition rules
- Texas Constitution Article VIII – Tax uniformity provisions
- Legislative Proposals (2024–2025) – House Bill drafts on BPP phase-out
What Is Business Personal Property (BPP)?
BPP includes:
- Office equipment
- Computers, servers
- Inventory (some exclusions)
- Furniture and fixtures
- Tools and machinery not permanently affixed
Texas businesses must render BPP annually by April 15, using Form 50-144.
Local taxing authorities assess value and levy ad valorem property tax, typically at 2–3% of market value.
2025 Legislative Proposals
Several proposals aim to eliminate or suspend BPP taxes in part or full:
- Moratorium for small businesses (less than $100K in assets)
- Exemption for software/hardware under certain use cases
- Gradual phase-out of BPP over 5 years
These changes would need constitutional amendments or funding offsets from state revenue.
Example: SaaS Firm in Dallas
Example: Nexly, a 12-person SaaS startup, owns $80,000 in laptops, servers, and standing desks. In 2024, they:
- Filed Form 50-144
- Paid $2,200 in local BPP tax
Under proposed 2025 changes:
- They may receive a 100% exemption on this class of property
- Their compliance and reporting burden drops to zero
Step-by-Step: BPP Compliance in 2025 (Until Changes Take Effect)
- Identify All Tangible Business Assets
List items used in operations that aren’t real property. - Complete Form 50-144
Due April 15. File with the local appraisal district. - Track Legislative Updates
Monitor Comptroller and local news for BPP moratorium developments. - Evaluate Tax Savings
Forecast 2025 and beyond scenarios under current and proposed rules. - Prepare for Audit Readiness
Maintain purchase receipts, depreciation schedules, and photos.
Conclusion
While Texas doesn’t tax personal income, BPP can be a stealth burden on growing businesses.
In 2025, founders should watch closely for moratorium bills or asset exemptions—and be ready to adjust tax planning quickly.
Call to Action
Worried about your BPP tax bill in 2025?
Book a consultation with Anshul Goyal, CPA, EA, FCA to:
- Estimate and file your BPP return (Form 50-144)
- Maximize exemptions and minimize audit risk
- Prepare for potential tax relief under new legislation
Don’t overpay while the rules are changing—plan smart.
https://calendly.com/anshulcpa/
About Our CPA
Anshul Goyal, CPA, EA, FCA
Anshul brings 15+ years of U.S. and international tax experience. He specializes in helping online sellers, foreign founders, and U.S. residents with IRS and multi-state compliance. Known for his deep knowledge in Shopify and Amazon seller tax strategy, Anshul has helped hundreds of entrepreneurs minimize taxes and scale legally.
Disclaimer
This blog is for informational purposes only and does not constitute legal or tax advice. Please consult a qualified tax professional regarding your individual tax situation.
Top 5 High-Searched FAQs (2025)
1. What is the BPP tax in Texas?
It’s a local property tax on business-owned tangible assets.
2. Is there a 2025 moratorium on BPP?
Pending. Several bills aim to exempt small businesses or certain property.
3. Do startups need to file Form 50-144?
Yes, unless exempt. Filing is due by April 15 each year.
4. Can I exclude leased property from BPP?
Usually no, unless the leaseholder pays the tax directly.
5. Will software be exempted in 2025?
Some proposed laws suggest so—especially if cloud-based.