82R15613 ALL-F
By: Miller of Erath H.B. No. 2810
A BILL TO BE ENTITLED
AN ACT
relating to an exemption from the sales and use tax for tangible
personal property incorporated into or attached to certain
agricultural structures.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 151.316(a), Tax Code, as amended by
Chapters 1162 (H.B. 3144) and 1373 (S.B. 958), Acts of the 81st
Legislature, Regular Session, 2009, is reenacted and amended to
read 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 structure that is located on a commercial dairy farm,
is used or employed exclusively for the production of milk, and is:
(A) a free-stall dairy barn;
(B) a dairy structure used solely for maternity
purposes; or
(C) a dairy commodity structure used as a batch
plant to measure, mix, and process finished feed for dairy cows.
SECTION 2. The change in law made by this Act 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.
SECTION 3. To the extent of any conflict, this Act prevails
over another Act of the 82nd Legislature, Regular Session, 2011,
relating to nonsubstantive additions to and corrections in enacted
codes.
SECTION 4. This Act takes effect September 1, 2011.