The calendar is about to flip, and with it comes a wave of new laws that will directly impact how Texas businesses operate, market, and grow. Whether you're running a small agency, managing a retail operation, or building a tech startup, these changes demand your attention.

Here's what you need to know about the laws going into effect January 1, 2026—and more importantly, what they mean for your marketing and business operations.

If you're using AI in any capacity—marketing automation, content generation, customer service chatbots, hiring tools—pay attention. The Texas Responsible Artificial Intelligence Governance Act creates the first comprehensive AI regulatory framework in Texas.

The law prohibits AI systems designed for social scoring, unlawful discrimination against protected classes, unauthorized biometric data collection, and creating certain harmful content. For marketers specifically, this means your AI-powered tools can't be designed to manipulate consumer behavior in deceptive ways or collect biometric data without proper consent.

Here's where it gets practical: if you're using AI in hiring decisions, customer profiling, or automated marketing decisions, you'll want to audit those systems now. The law requires government agencies to disclose when consumers interact with AI systems, and while that requirement is more limited for private businesses, the direction is clear—transparency in AI use is becoming the expectation.

The good news? Texas took a more innovation-friendly approach than some states. There's a regulatory sandbox for testing new AI systems, and the intent standard for proving discrimination is higher than Colorado's stricter requirements. But don't let that lull you into complacency. Implement an AI risk management policy, document your AI use cases, and be prepared to demonstrate that your systems aren't designed to discriminate.

This is the win most small business owners have been waiting for. Starting January 1, 2026, the business personal property tax exemption jumps from a mere $2,500 to $125,000.

For context: if your business owns equipment, inventory, furniture, computers, or other tangible assets used for income production, you've been paying property taxes on those assets every year. That annual bite just got a lot smaller.

If your total business personal property is worth less than $125,000, you'll likely owe nothing on it. For many small businesses—home-based operations, small retail shops, professional services firms, independent contractors—this effectively eliminates the business personal property tax entirely. The Legislative Budget Board estimates this saves Texas businesses over $500 million annually.

There's a practical compliance benefit too: businesses under the exemption threshold won't need to file the annual BPP rendition (Form 50-144) with their county appraisal district. That's paperwork and hassle eliminated.

Action item: Talk to your accountant about how this affects your 2026 tax planning. If you've been considering equipment purchases or inventory expansion, factor this exemption into your calculations.

The Texas Data Privacy and Security Act (TDPSA) went into effect in July 2024, but January 1, 2025 brought a critical new requirement that many businesses missed: you must now recognize universal opt-out mechanisms like Global Privacy Control.

What does this mean practically? If a consumer has enabled privacy controls in their browser settings or through browser extensions that signal they don't want their data sold or used for targeted advertising, your website must honor that signal. No more relying solely on your own cookie consent banner.

For marketers, this has real implications. Your tracking pixels, retargeting campaigns, and data collection practices need to account for these signals. Facebook Pixel, Google Analytics with advertising features, and similar tools may be affected when users have GPC enabled.

The good news for small businesses: if you meet the SBA's definition of a small business, you're generally exempt from most TDPSA requirements—unless you're selling sensitive personal data, in which case you need explicit consent regardless of size.

Violations can result in penalties up to $7,500 per violation, enforced by the Texas Attorney General. There's a 30-day cure period if you receive notice of a violation, and unlike some states, that cure period doesn't sunset. Texas is more forgiving here, but proactive compliance is always smarter than reactive scrambling.

Senate Bill 2420 was set to revolutionize how apps are distributed to Texas consumers, requiring age verification for all users and parental consent for minors before any app download or purchase. The law would have applied to Apple, Google, and any other app marketplace.

However, just days ago, a federal judge blocked the law on First Amendment grounds, calling it akin to "requiring every bookstore to verify the age of every customer at the door." The injunction means the law won't take effect as planned while litigation proceeds.

Why should you care? If you're a business with a mobile app, or you distribute software through app stores, this law would have created significant new compliance burdens. While it's blocked for now, expect appeals and potential legislative revisions. The trend toward protecting minors online isn't going away—it's just a question of how the law will eventually be structured.

Beyond Texas, federal changes are landing that affect businesses operating here.

The "One Big Beautiful Bill Act" (OBBBA) introduces tax deductions for overtime pay and tips for tax years 2025-2028. Workers can deduct the "half" portion of their FLSA-required time-and-a-half pay for overtime hours, capped at $12,500 annually. Employees in tipped occupations may deduct up to $25,000 in qualified tips annually.

For employers, this doesn't change your withholding obligations immediately—the IRS will update withholding tables for 2026. But it does make overtime work and tipped positions more attractive to workers, which could affect your hiring and compensation strategies.

The Corporate Transparency Act (CTA) requiring beneficial ownership reporting to FinCEN has had its enforcement paused while regulators reassess the burden on small domestic companies. For now, most businesses can hold off on reporting unless they're foreign-owned or in higher-risk categories. But keep documentation current—this could change.

The FTC's Rule on the Use of Consumer Reviews and Testimonials went into effect in October 2024, and enforcement is ramping up. Just last week, the FTC warned 10 companies about possible violations.

For marketers working with influencers or managing customer reviews, here's what you can't do: create, buy, or sell fake reviews; pay for positive reviews (even if disclosed, if the positive sentiment is required); suppress negative reviews selectively; or purchase fake social media followers to inflate influence.

Influencer disclosures must be clear and conspicuous—not buried in hashtags or at the end of long captions. "#ad" at the beginning of sponsored content is the baseline expectation. Brands are responsible for ensuring their influencers comply, and penalties can reach $53,088 per violation.

If you're running influencer campaigns—particularly relevant for agencies like those working in the creator economy—document your agreements, train your influencers on disclosure requirements, and monitor compliance. The FTC is actively watching this space.

The theme across all these changes is clear: transparency, data protection, and responsible use of technology are no longer optional. Here's your action list:

Audit your AI tools. Document what AI you're using, what decisions it's making or influencing, and whether any of it touches protected categories like hiring, credit, or housing decisions.

Review your privacy practices. Make sure your website recognizes Global Privacy Control signals. Update your privacy policy if needed. If you're collecting sensitive data, ensure you have proper consent mechanisms.

Talk to your accountant. The inventory tax exemption could meaningfully change your tax liability. Model it out before year-end.

Clean up your review practices. If you're incentivizing reviews, make sure you're not requiring positive sentiment. If you're working with influencers, ensure disclosures are happening correctly.

Stay informed. The App Store Accountability Act litigation, AI regulations, and privacy laws are all evolving. What's blocked today may be law tomorrow in modified form.

The businesses that thrive aren't the ones that scramble after compliance deadlines hit—they're the ones that see the direction of travel and get ahead of it. 2026 is bringing real changes. Make sure you're ready.