By: Miller of Erath H.B. No. 2810
A BILL TO BE ENTITLED
AN ACT
relating to the exemption from limited sales, excise and use
taxation of tangible personal property incorporated into or
attached to certain specific purpose agricultural structures.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 151.316(a), Tax Code, is amended as
follows:
(a) The following items are exempted from the taxes imposed
by this chapter:
(1) horses, mules, and work animals;
(2) animal life, the products of which ordinarily
constitute food for human consumption;
(3) feed for farm and ranch animals;
(4) feed for animals that are held for sale in the
regular course of business;
(5) seeds and annual plants the products of which:
(A) ordinarily constitute food for human
consumption;
(B) are to be sold in the regular course of
business; or
(C) are used to produce feed for animals exempted
by this section;
(6) fertilizers, fungicides, insecticides,
herbicides, defoliants, and desiccants exclusively used or
employed on a farm or ranch in the production of:
(A) food for human consumption;
(B) feed for animal life; or
(C) other agricultural products to be sold in the
regular course of business;
(7) machinery and equipment exclusively used or
employed on a farm or ranch in the building or maintaining of roads
or water facilities or in the production of:
(A) food for human consumption;
(B) grass;
(C) feed for animal life; or
(D) other agricultural products to be sold in the
regular course of business;
(8) machinery and equipment exclusively used in, and
pollution control equipment required as a result of, the
processing, packing, or marketing of agricultural products by an
original producer at a location operated by the original producer
for processing, packing, or marketing the producer's own products
if:
(A) 50 percent or more of the products processed,
packed, or marketed at or from the location are produced by the
original producer and not purchased or acquired from others; and
(B) the producer does not process, pack, or
market for consideration any agricultural products that belong to
other persons in an amount greater than five percent of the total
agricultural products processed, packed, or marketed by the
producer;
(9) ice exclusively used by commercial fishing boats
in the storing of aquatic species including but not limited to
shrimp, other crustaceans, finfish, mollusks, and other similar
creatures;
(10) tangible personal property, including a tire,
sold or used to be installed as a component part of a motor vehicle,
machinery, or other equipment exclusively used or employed on a
farm or ranch in the building or maintaining of roads or water
facilities or in the production of:
(A) food for human consumption;
(B) grass;
(C) feed for animal life; or
(D) other agricultural products to be sold in the
regular course of business;
(11) machinery and equipment exclusively used in an
agricultural aircraft operation, as defined by 14 C.F.R. Section
137.3; [and]
(12) tangible personal property incorporated into a
structure that is used for the disposal of poultry carcasses in
accordance with Section 26.303, Water Code; and
(13) tangible personal property incorporated into or
attached to a commercial dairy free stall barn, a commercial dairy
structure used solely for maternity purposes, or a commodity
structure used as batch plants to measure, mix and process finished
feed for dairy cows.
SECTION 2. The change in law made by this Act by the
amendment of Section 151.316(a), Tax Code, does not affect tax
liability accruing before the effective date of this Act. That
liability continues in effect as if this Act had not been enacted,
and the former law is continued in effect for the collection of
taxes due and for civil and criminal enforcement of the liability
for those taxes. This Act shall not, however, be cited or utilized
for the purpose of asserting that the changes made by this Act
indicate that a tax liability was properly accrued for any prior
period.
SECTION 3. This Act takes effect September 1, 2011.