New Texas Laws For January 1, 2024 : Key Points, Changes & When Will It Come Into Effect?

News: On January 1, 2024, Texas will see the enactment of thirty new state laws, encompassing diverse subjects such as anti-DEI measures, tax reforms, diversion strategies for minor offenders, rules for online notaries, and the introduction of specialty license plates. The arrival of these laws signals the culmination of a busy year for Texas legislators, navigating through five special month-long sessions alongside the customary spring session.

Anti-DEI Law and Other Notable Changes

An impactful law set to take effect on January 1 in Texas is the anti-DEI legislation, designed to eliminate diversity-oriented programs from public universities within the state. Alongside this, the legislation introduces fresh penalties for property owners’ associations (HOAs) and adjustments to property tax regulations.

Tax Exemptions and Information Dissemination

Among the array of provisions in the new legislation, several noteworthy measures include tax exemptions for specific charitable organizations, mandates for information dissemination within the Property Tax Code, and the designation of a taxpayer liaison officer for an appraisal district. Additionally, the legislation includes provisions to maintain open-space status for land transferred to a surviving spouse, authorization for fees in juvenile diversion programs, and the facilitation of online notarizations.

Controversial Laws and Impacts

One controversial law set to take effect on January 1 is the prohibition of diversity initiatives at public universities. This law has been met with criticism and debate. Another contentious law grants state judges the authority to deport immigrants. These laws, along with 29 others, will go into force at the beginning of the new year.

Alongside the legislative modifications, there will be substantial implications for both businesses and individuals in Texas. As part of a property tax relief initiative, the franchise tax exemption is set to rise to approximately $2.5 million, benefiting roughly 67,000 small and medium-sized enterprises, relieving them from filing franchise tax returns or payment.

Furthermore, strict regulations will bar the sale of e-cigarettes to minors, prohibiting marketing strategies that target underage consumers using cartoon characters, celebrities, or resemblances to candy or juice. Perpetrators engaging in such sales will face legal repercussions.

These laws stem from a legislative session concluding on May 29, 2023, followed by additional special sessions convened by Governor Greg Abbott. While some laws take effect on January 1, others may have varying start dates throughout the year.

FAQs

Q: What topics do the new state laws in Texas cover?

A: The new state laws cover a wide range of topics, including anti-DEI legislation, tax regulations, diversion plans for minors accused of offenses, regulations for internet notaries, and specialty license plates.

Q: When will the anti-DEI law come into effect?

A: The anti-DEI law will come into effect on January 1, 2024.

Q: What are the impacts of the new laws on businesses?

A: The franchise tax exemption will increase to approximately $2.5 million, providing tax relief to around 67,000 small and medium-sized enterprises. Additionally, the sale of e-cigarettes to underage consumers will be strictly prohibited.