Relating to the exemption from ad valorem taxation of farm products.
Impact
The amendments in SB732 have significant implications for agricultural operations in Texas. By exempting farm products, including livestock, poultry, and timber from ad valorem taxes, the bill assists farmers in reducing their financial burdens, promoting growth and sustainability within the agricultural sector. The changes are designed to support local agriculture by providing necessary financial relief while encouraging continued investment into farm operations and productivity.
Summary
SB732 introduces amendments to the Tax Code concerning the exemption from ad valorem taxation of farm products. The legislation specifies that producers are entitled to tax exemptions for farm products they produce and own. Notably, it includes nursery products that are in a growing state and defines eggs as farm products, regardless of packaging. This modification aims to enhance fairness in taxation for agricultural producers, acknowledging the importance of these sectors in the state's economy.
Contention
Discussion surrounding SB732 may involve debates over the implications of tax exemptions for various types of farm products. While proponents argue that the bill fosters agricultural growth and is essential for supporting local producers, some opponents may raise concerns about the impact on state revenue and the equitable distribution of tax responsibilities among different sectors. The balance between supporting local agriculture and ensuring adequate funding for public services could be a focal point of contention as the bill progresses.
Relating to the exemption from ad valorem taxation of certain assets used for agricultural production and to the authority of a county commissioners court to adopt an exemption from ad valorem taxation by each taxing unit that taxes the property of the portion of the appraised value of a person's property that is attributable to the installation in or on the property of certain water conservation systems.
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 define certain terms for purposes of the exemption from ad valorem taxation of farm products in the hands of a producer and to authorize the commissioners court of a county to exempt from ad valorem taxation by each political subdivision that taxes the property the portion of the assessed value of a person's property that is attributable to the installation in or on the property of a rainwater harvesting or graywater system.
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.