| 1 | 1 | | 84R1746 LEH-F |
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| 2 | 2 | | By: Nichols S.B. No. 732 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the exemption from ad valorem taxation of farm |
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| 8 | 8 | | products. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Sections 11.16(a) and (c), Tax Code, are amended |
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| 11 | 11 | | to read as follows: |
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| 12 | 12 | | (a) A producer is entitled to an exemption from taxation of |
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| 13 | 13 | | the farm products that the producer [he] produces and owns. A |
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| 14 | 14 | | nursery product, as defined by Section 71.041, Agriculture Code, is |
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| 15 | 15 | | a farm product for purposes of this section if it is in a growing |
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| 16 | 16 | | state. An egg, as defined by Section 132.001, Agriculture Code, is |
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| 17 | 17 | | a farm product for purposes of this section, regardless of whether |
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| 18 | 18 | | the egg is packaged. |
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| 19 | 19 | | (c) For purposes of this exemption, the following |
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| 20 | 20 | | definitions apply: |
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| 21 | 21 | | (1) "Farm products" include livestock, poultry, and |
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| 22 | 22 | | timber. |
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| 23 | 23 | | (2) "In the hands of the producer," for livestock, |
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| 24 | 24 | | [and] poultry, and eggs, means under the ownership of the person who |
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| 25 | 25 | | is financially providing for the physical requirements of such |
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| 26 | 26 | | livestock, [and] poultry, and eggs on January 1 of the tax year and, |
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| 27 | 27 | | for timber, means standing timber or timber that has been harvested |
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| 28 | 28 | | and, on January 1 of the tax year, is located on the real property on |
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| 29 | 29 | | which it was produced and is under the ownership of the person who |
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| 30 | 30 | | owned the timber when it was standing. |
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| 31 | 31 | | SECTION 2. This Act applies only to ad valorem taxes imposed |
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| 32 | 32 | | for a tax year that begins on or after the effective date of this |
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| 33 | 33 | | Act. |
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| 34 | 34 | | SECTION 3. This Act takes effect January 1, 2016. |
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