| 1 | 1 | | 89R5501 MLH-F |
|---|
| 2 | 2 | | By: Hall S.B. No. 1481 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | |
|---|
| 6 | 6 | | |
|---|
| 7 | 7 | | A BILL TO BE ENTITLED |
|---|
| 8 | 8 | | AN ACT |
|---|
| 9 | 9 | | relating to the treatment for ad valorem tax purposes of land and |
|---|
| 10 | 10 | | equipment used for hydroponic farming. |
|---|
| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 12 | 12 | | SECTION 1. Section 11.161, Tax Code, is amended by adding |
|---|
| 13 | 13 | | Subsection (c) to read as follows: |
|---|
| 14 | 14 | | (c) For purposes of Subsection (a), farm or ranch products |
|---|
| 15 | 15 | | may be produced by hydroponic farming. |
|---|
| 16 | 16 | | SECTION 2. Section 23.42(d)(1), Tax Code, is amended to |
|---|
| 17 | 17 | | read as follows: |
|---|
| 18 | 18 | | (1) "Agriculture" means the use of land to produce |
|---|
| 19 | 19 | | plant or animal products, including fish or poultry products, under |
|---|
| 20 | 20 | | natural conditions, including hydroponic farming, but does not |
|---|
| 21 | 21 | | include the processing of plant or animal products after harvesting |
|---|
| 22 | 22 | | or the production of timber or forest products. |
|---|
| 23 | 23 | | SECTION 3. Section 23.51(2), Tax Code, is amended to read as |
|---|
| 24 | 24 | | follows: |
|---|
| 25 | 25 | | (2) "Agricultural use" includes but is not limited to |
|---|
| 26 | 26 | | the following activities: cultivating the soil, producing crops |
|---|
| 27 | 27 | | for human food, animal feed, or planting seed or for the production |
|---|
| 28 | 28 | | of fibers; floriculture, viticulture, and horticulture; raising or |
|---|
| 29 | 29 | | keeping livestock; raising or keeping exotic animals for the |
|---|
| 30 | 30 | | production of human food or of fiber, leather, pelts, or other |
|---|
| 31 | 31 | | tangible products having a commercial value; planting cover crops |
|---|
| 32 | 32 | | or leaving land idle for the purpose of participating in a |
|---|
| 33 | 33 | | governmental program, provided the land is not used for residential |
|---|
| 34 | 34 | | purposes or a purpose inconsistent with agricultural use; and |
|---|
| 35 | 35 | | planting cover crops or leaving land idle in conjunction with |
|---|
| 36 | 36 | | normal crop or livestock rotation procedure. The term also |
|---|
| 37 | 37 | | includes the use of land to produce or harvest logs and posts for |
|---|
| 38 | 38 | | the use in constructing or repairing fences, pens, barns, or other |
|---|
| 39 | 39 | | agricultural improvements on adjacent qualified open-space land |
|---|
| 40 | 40 | | having the same owner and devoted to a different agricultural use. |
|---|
| 41 | 41 | | The term also includes the use of land for wildlife management. The |
|---|
| 42 | 42 | | term also includes the use of land to raise or keep bees for |
|---|
| 43 | 43 | | pollination or for the production of human food or other tangible |
|---|
| 44 | 44 | | products having a commercial value, provided that the land used is |
|---|
| 45 | 45 | | not less than 5 or more than 20 acres. The term also includes the |
|---|
| 46 | 46 | | use of land for hydroponic farming. |
|---|
| 47 | 47 | | SECTION 4. This Act applies only to ad valorem taxes imposed |
|---|
| 48 | 48 | | for an ad valorem tax year that begins on or after the effective |
|---|
| 49 | 49 | | date of this Act. |
|---|
| 50 | 50 | | SECTION 5. This Act takes effect January 1, 2026. |
|---|