Relating to the definitions of certain terms for purposes of the exemption from ad valorem taxation of farm products in the hands of the producer.
Impact
The proposed changes to the definitions in HB 110 affect how farm products are treated for taxation. By clearly defining what is included and the conditions under which the exemption is applicable, the bill seeks to enhance the understanding and compliance with tax regulations among producers. However, it is imperative to note that the enactment of this bill is contingent upon the approval of a constitutional amendment by the voters in a future election. This adds another layer of consideration for stakeholders who may be affected by these tax implications.
Summary
House Bill 110 aims to amend the definitions of certain terms associated with the exemption from ad valorem taxation for farm products in the possession of producers. Specifically, the bill modifies the definition of 'farm products' to explicitly include livestock, poultry, eggs, and timber, which encompasses both standing timber and timber that has been harvested. These changes are relevant for tax purposes and ensure clarity regarding what constitutes a farm product under the Texas Tax Code.
Contention
A notable aspect of HB 110 is its reliance on potential legislative changes that hinge on voter approval. Should the proposed constitutional amendment not pass, the bill will have no effect, raising questions about the future of tax exemptions for agriculture-related products. Furthermore, changes to tax laws, especially those involving essential commodities like farm products, often invite discussions among stakeholders, including farmers, tax professionals, and advocacy groups, each with their perspectives on the implications of such legislative actions.
Enabling for
Proposing a constitutional amendment authorizing the legislature to define certain terms for purposes of the exemption from ad valorem taxation of farm products in the hands of the producer.
Proposing a constitutional amendment authorizing the legislature to define certain terms for purposes of the exemption from ad valorem taxation of farm products in the hands of the producer.
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 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.
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.
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.
Relating to the eligibility of certain land for appraisal for ad valorem tax purposes on the basis of its productivity value and the consequences for those purposes of a change of use or sale of the land.