Texas House Bill HJR47

Texas 2023 - 88th Regular

• Filed: 11/14/22
• Out of House Committee: 4/12/23
• Voted on by House: 4/25/23

Caption

Proposing a constitutional amendment authorizing the legislature to exempt from ad valorem taxation tangible personal property consisting of animal feed held by the owner of the property for sale at retail.

Impact

If enacted, HJR47 would change existing tax laws to exempt specific types of tangible personal property from local ad valorem taxes, potentially impacting how local governments generate revenue. The exemption would mean that businesses dealing in livestock feed would not incur taxes on such inventory, directly benefiting retailers and thereby supporting their pricing strategies. This could lead to lower prices for consumers, but it may also result in reduced funding for local services that rely on property tax revenues.

Summary

HJR47 proposes a constitutional amendment that would authorize the legislature to exempt from ad valorem taxation tangible personal property consisting of animal feed that is held by retailers for sale. This legislative measure is intended to alleviate some of the tax burdens facing entities within the agricultural sector and aims to ensure that retail businesses can maintain competitive pricing in the market. The rationale behind this amendment stems from the recognition of the significant role that livestock feed plays in the state's agricultural industry and economic health.

Sentiment

Overall sentiment around HJR47 appears supportive among industry representatives, particularly from the agricultural sector. Testimonies from stakeholders like the Texas Grain and Feed Association indicate a strong backing for the bill, as they argue it will help their industry remain viable amid rising operational costs. However, there might be concerns regarding potential repercussions for local governance and budgeting, as reduced tax revenues could impact funding for essential community services.

Contention

Notable points of contention include the balance between supporting local businesses and maintaining adequate funding for local government services. Some critics may argue that while tax relief for specific industries could be beneficial, it could also lead to inequities in tax burdens across different sectors, potentially complicating the financial landscape for local governments. Additionally, there could be discussions around whether such tax exemptions should be extended to other types of businesses or industries facing similar challenges.