Texas Passes Legislation to Exempt Medical and Biomedical Manufacturers from Business Personal Property Tax
Jesse Noneman, Principal, Vice Practice Leader 463.246.8892 | jesse.noneman@ryan.com
Mark LoRusso, Principal 602.955.1792 | mark.lorusso@ryan.com
In late 2023, the state of Texas passed SB 2289, an amendment to the existing law concerning ad valorem taxation exemption for equipment and inventory held by manufacturers of medical and biomedical products at a qualified manufacturing site. The law is intended to protect the Texas healthcare network and strengthen the medical supply chain. To secure the exemption, a Form 50-842, Application for Exemption of Medical or Biomedical Personal Property, must be filed with the appraisal district no later than April 30.
Manufacturers of the following medical and biomedical properties should take immediate action to ensure the exemption for qualifying property is secured for the 2024 tax year:
- Devices
- Therapeutics
- Pharmaceuticals
- Personal protective equipment
- Tools, apparatuses, instruments, and implants
The subject matter experts at Ryan are collaborating with the Comptroller’s Office, selected appraisal districts, and the bill sponsor, acquiring guidance for our clients. Our goal is to offer comprehensive information and support to medical and biomedical manufacturers, enabling them to navigate the practical implications of the new law seamlessly.