89R16787 MLH-D
By: Guillen, et al. H.B. No. 255
Substitute the following for H.B. No. 255:
By: Vasut C.S.H.B. No. 255
A BILL TO BE ENTITLED
AN ACT
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.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.16(c), Tax Code, is amended to read as
follows:
(c) For purposes of this exemption, the following
definitions apply:
(1) "Farm products" has the meaning assigned by
Section 9.102, Business & Commerce Code, except that the term
includes [include livestock,] poultry, eggs, and timber, including
standing timber.
(2) "In the hands of the producer [,]" means:
(A) for farm products other than timber,
[livestock, poultry, and eggs, means] under the ownership of the
person who is using or financially providing for the physical
requirements of such farm products [livestock, poultry, and eggs]
on January 1 of the tax year; and
(B) [,] for timber, [means] standing timber or
timber that has been harvested and, on January 1 of the tax year, is
located on the real property on which it was produced and is under
the ownership of the person who owned the timber when it was
standing.
SECTION 2. This Act applies only to a tax year beginning on
or after January 1, 2026.
SECTION 3. This Act takes effect January 1, 2026, but only
if the constitutional amendment proposed by the 89th Legislature,
Regular Session, 2025, 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 is approved
by the voters. If that amendment is not approved by the voters,
this Act has no effect.