| 1 | 1 | | 89R4299 CS-F |
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| 2 | 2 | | By: Button H.B. No. 4083 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to an exemption from ad valorem taxation of certain |
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| 10 | 10 | | perishable inventory held for sale at retail. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by |
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| 13 | 13 | | adding Section 11.38 to read as follows: |
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| 14 | 14 | | Sec. 11.38. PERISHABLE RETAIL INVENTORY. (a) In this |
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| 15 | 15 | | section, "perishable inventory" means: |
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| 16 | 16 | | (1) any food or food product, other than alcohol, |
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| 17 | 17 | | intended for human consumption that may spoil or otherwise become |
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| 18 | 18 | | unfit for human consumption due to the nature, type, or physical |
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| 19 | 19 | | condition of the food, including: |
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| 20 | 20 | | (A) fresh produce, including fruits and |
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| 21 | 21 | | vegetables; |
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| 22 | 22 | | (B) fresh and processed meats, poultry, and fish; |
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| 23 | 23 | | (C) dairy products; |
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| 24 | 24 | | (D) bakery products; |
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| 25 | 25 | | (E) eggs; |
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| 26 | 26 | | (F) food that has been packaged, refrigerated, or |
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| 27 | 27 | | frozen; and |
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| 28 | 28 | | (G) any food intended for immediate human |
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| 29 | 29 | | consumption; |
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| 30 | 30 | | (2) a prescription drug or nonprescription drug, as |
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| 31 | 31 | | defined by Section 551.003, Occupations Code; and |
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| 32 | 32 | | (3) a dietary supplement or vitamin intended for human |
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| 33 | 33 | | or animal consumption. |
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| 34 | 34 | | (b) Subject to Subsection (c), a person is entitled to an |
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| 35 | 35 | | exemption from taxation of the total appraised value of the |
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| 36 | 36 | | tangible personal property the person owns that consists of |
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| 37 | 37 | | perishable inventory held for sale by the person at retail and for |
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| 38 | 38 | | which the person is not otherwise entitled to an exemption from |
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| 39 | 39 | | taxation. |
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| 40 | 40 | | (c) A person is not entitled to an exemption under |
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| 41 | 41 | | Subsection (b) for a tax year in which the person owes a delinquent |
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| 42 | 42 | | tax to the state or a taxing unit on January 1 of that tax year. |
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| 43 | 43 | | SECTION 2. This Act applies only to an ad valorem tax year |
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| 44 | 44 | | that begins on or after January 1, 2026. |
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| 45 | 45 | | SECTION 3. This Act takes effect January 1, 2026, but only |
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| 46 | 46 | | if the constitutional amendment proposed by the 89th Legislature, |
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| 47 | 47 | | Regular Session, 2025, to authorize the legislature to exempt from |
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| 48 | 48 | | ad valorem taxation certain perishable inventory held for sale at |
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| 49 | 49 | | retail is approved by the voters. If that amendment is not approved |
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| 50 | 50 | | by the voters, this Act has no effect. |
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