Texas House Bill HB1182

Texas 2017 - 85th Regular

Caption

Relating to the exemption from ad valorem taxation of tangible personal property consisting of certain food products held by the owner of the property for sale at retail.

Impact

The legislative impacts of HB 1182 suggest a potential relief for food retailers, facilitating a more favorable financial environment for those involved in the retail food industry. By reducing the tax burden associated with holding inventory, the bill aims to encourage greater retail sales and possibly stabilize food prices for consumers. The bill is expected to only apply to the tax years commencing after its effective date, emphasizing its targeted relief for future fiscal periods.

Summary

House Bill 1182 pertains to the exemption from ad valorem taxation regarding tangible personal property that consists of certain food products held by retailers for sale. This bill proposes an amendment to the Texas Tax Code, specifically introducing a new section that allows owners of such food products, which are already exempted from the sales and use tax, to also be exempt from ad valorem taxation based on their appraised value. This is intended to ease the tax burden on food retailers, promoting the sale of essential goods without additional tax liabilities.

Contention

While HB 1182 appears straightforward in its intent to support food retailers, it may face scrutiny regarding the implications on state tax revenues. Opponents might argue that tax exemptions could lead to significant reductions in revenue that local governments rely on for essential services. Furthermore, the bill's effectiveness is contingent on a constitutional amendment approved by voters, which introduces a layer of uncertainty and potential contention within the legislative process, particularly among groups concerned with tax equity and fiscal policy.