Relating to an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property that is held or used for the production of income.

Contracts

• Triple Net (NNN) Leases: Tenants must audit CAM charges to ensure landlords receiving this exemption are passing through the tax savings and not billing for BPP taxes they no longer pay.
• Tax Consultant Agreements: Renegotiate scopes of work. If your assets are clearly under $125,000, you should pay for a simple certification filing, not a complex rendition schedule.
• Franchise Agreements: Franchisors must update manuals to define how franchisees report assets, specifically regarding equipment owned by the franchisor but located at the franchisee's site.

Hiring/Training

• Signatory Risk: CFOs and Controllers must be trained on the new criminal liability (Class A Misdemeanor/State Jail Felony) for false statements.
• Entity Mapping: Finance teams must be trained to identify "Related Business Entities" (common enterprise at the same address) rather than treating legal entities as siloes.

Reporting & Record-Keeping

• Internal Valuation: You can no longer rely on the Appraisal District to set value. You must maintain internal depreciation schedules proving your "reasonable belief" that assets are under $125,000 to defend against audits.
• New Certification: Eligible businesses must file a specific statement certifying value is under the limit, rather than a line-item asset list.
• Aggregation Records: Documentation proving which entities are—and are not—part of a "common business enterprise" must be maintained for inspection.

Fees & Costs

• Tax Savings: Elimination of BPP tax liability for aggregated assets under $125,000.
• Admin Costs: Minimal increase in internal administrative time to verify "Related Business Entity" status.