By: Ashby, et al. (Senate Sponsor - Nichols) H.B. No. 275
(In the Senate - Received from the House April 23, 2015;
April 27, 2015, read first time and referred to Committee on
Finance; May 6, 2015, reported favorably by the following vote:
Yeas 13, Nays 0; May 6, 2015, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to the exemption from ad valorem taxation of farm
products.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 11.16(a) and (c), Tax Code, are amended
to read as follows:
(a) A producer is entitled to an exemption from taxation of
the farm products that the producer [he] produces and owns. A
nursery product, as defined by Section 71.041, Agriculture Code, is
a farm product for purposes of this section if it is in a growing
state. An egg, as defined by Section 132.001, Agriculture Code, is
a farm product for purposes of this section, regardless of whether
the egg is packaged.
(c) For purposes of this exemption, the following
definitions apply:
(1) "Farm products" include livestock, poultry, and
timber.
(2) "In the hands of the producer," for livestock,
[and] poultry, and eggs, means under the ownership of the person who
is financially providing for the physical requirements of such
livestock, [and] poultry, and eggs on January 1 of the tax year and,
for timber, means standing timber or timber that has been harvested
and, on January 1 of the tax year, is located on the real property on
which it was produced and is under the ownership of the person who
owned the timber when it was standing.
SECTION 2. This Act applies only to ad valorem taxes imposed
for a tax year that begins on or after the effective date of this
Act.
SECTION 3. This Act takes effect January 1, 2016.
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