Relating to an exemption from ad valorem taxation of tangible personal property consisting of animal feed held by the owner of the property for sale at retail.
Impact
If enacted, SB994 would amend Chapter 11 of the Tax Code by adding Section 11.162, which allows owners of eligible animal feed to benefit from this new tax exemption. This change is contingent upon the approval of a constitutional amendment proposed during the 89th Legislature (Regular Session, 2025), which would enable such exemptions at the state level. The exemption would apply only to ad valorem taxes for tax years beginning on or after January 1, 2026, should the amendment pass, effectively creating a window for implementation.
Summary
Senate Bill 994 proposes an exemption from ad valorem taxation for tangible personal property specifically consisting of animal feed that is held by the owner for retail sale. This legislative effort aims to alleviate the tax burden on sellers of animal feed, aligning with existing sales tax exemptions applicable under Texas law. The bill seeks to ensure that such property, which is integral to agricultural and livestock operations, is treated favorably in terms of taxation, thereby providing support to the agricultural sector.
Contention
Notably, the passage of SB994 may spark discussions regarding equity in taxation and the implications for other agricultural-related products that may seek similar treatment. While proponents may argue that this exemption supports farmers and retailers by reducing their operational costs, critics might voice concerns regarding the potential loss of tax revenue for local governments. Thus, the bill may raise issues about how tax relief measures impact overall state funding and resources devoted to public services. The requirement for voter approval of the related constitutional amendment also indicates an additional layer of public engagement and scrutiny surrounding the proposed tax change.
Identical
Relating to an exemption from ad valorem taxation of tangible personal property consisting of animal feed held by the owner of the property for sale at retail.
Enabling for
Proposing a constitutional amendment authorizing the legislature to exempt from ad valorem taxation tangible personal property consisting of animal feed held by the owner of the property for sale at retail.
Relating to an exemption from ad valorem taxation of tangible personal property consisting of animal feed held by the owner of the property for sale at retail.
Proposing a constitutional amendment authorizing the legislature to exempt from ad valorem taxation tangible personal property consisting of animal feed held by the owner of the property for sale at retail.
Relating to an exemption from ad valorem taxation of a percentage of the appraised value of the tangible personal property a person owns that consists of inventory held for sale at retail.
Relating to an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property a person owns that is held or used for the production of income.
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 and a franchise tax credit for the payment of certain related ad valorem taxes.
Proposing a constitutional amendment to authorize the legislature to exempt from ad valorem taxation a percentage of the market value of the tangible personal property a person owns that consists of inventory held for sale at retail.