By: Guillen H.B. No. 3241
A BILL TO BE ENTITLED
AN ACT
relating to the exemption of certain assets used for agricultural
production from property taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11, Tax Code, is amended by adding
section 11.162 to read as follows:
Sec. 11.162. FARM PRODUCTION INPUTS. (a) A producer is
entitled to an exemption from taxation of any resources that the
producer utilizes for the purpose of production.
(b) Farm production inputs in the hands of the producer are
exempt.
(c) For purposes of this exemption, the following
definitions apply:
(1) "Farm production inputs" include seeds, weaned
animals, fertilizer, pesticides, feed, and any other resources that
are necessary to produce crops, fruit, flowers, and other products
of the soil, or farm products defined in section 11.16.
(2) "In the hands of the producer," means under the
ownership of the person who is utilizing farm production inputs
such as seeds, weaned animals, fertilizer, pesticides, feed, and
any resources necessary to begin production, on January 1 of the tax
year for the purpose of producing crops, fruits, flowers, and other
products of the soil, or farm products defined by section 11.16.
SECTION 2. This Act takes effect September 1, 2023