The Texas State Legislature voted to send a constitutional amendment that would authorize the legislature to provide for a property tax exemption on equipment and inventory manufactured by medical or biomedical companies. The legislature also passed the enabling legislation, Senate Bill 2289 (SB 2289), which would take effect if the amendment is passed in Nov. 2023.
SB 2289 defines medical and biomedical property as “tangible personal property that is stored, used, or consumed in the manufacturing or processing of medical or biomedical products by a medical or biomedical manufacturer.” This would include devices, therapeutics, pharmaceuticals, personal protective equipment, instruments, implants, and manufacturing inventories, including finished goods.
This amendment was introduced as Senate Joint Resolution 87 (SJR 87) on March 10. To put a legislatively referred constitutional amendment before voters, a two-thirds (66.67%) vote was required in both chambers. On April 13, the state Senate passed SJR 87 by a vote of 26-4 with one absent. On May 17, the state House passed SJR 87 by a vote of 125-10 with 14 not voting and one vacancy.
