89R16267 DRS-D
By: Menéndez S.B. No. 2474
A BILL TO BE ENTITLED
AN ACT
relating to a credit against the ad valorem taxes imposed on real
property used for a grocery store or healthy corner store located in
a food desert.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 31, Tax Code, is amended by adding
Section 31.039 to read as follows:
Sec. 31.039. TAX CREDIT FOR GROCERY STORE OR HEALTHY CORNER
STORE LOCATED IN FOOD DESERT. (a) In this section:
(1) "Food desert" means a census tract, based on
information published by the United States Bureau of the Census for
the most recent decennial census, in which:
(A) the poverty rate is 20 percent or higher or
the median family income is at or below 80 percent of the area
median family income; and
(B) at least 500 people or at least 33 percent of
the census area's population reside more than:
(i) one mile from a grocery store, in the
case of a census tract other than a rural census tract; or
(ii) 10 miles from a grocery store, in the
case of a rural census tract.
(2) "Grocery store" means a store that has at least:
(A) 66 percent of the store's retail space
reserved for the sale of food products;
(B) 50 percent of the store's food retail space
reserved for the sale of non-prepared foods or foods intended for
home preparation and consumption; and
(C) 30 percent of the store's food retail space
reserved for the sale of perishable foods, including dairy
products, fresh produce, fresh meats, poultry, fish, and frozen
foods.
(3) "Healthy corner store" means a store that:
(A) has less than 2,000 square feet of retail
space;
(B) offers a wide variety of fresh produce for
sale; and
(C) allocates at least 20 percent of the store's
retail space to fresh produce and other perishable foods, including
dairy products.
(b) A person who owns real property is entitled to a credit
against the taxes imposed on the property by each taxing unit that
taxes the property if the property is:
(1) located in a food desert; and
(2) used to operate a grocery store or healthy corner
store.
(c) The amount of the credit to which a property owner is
entitled under this section against the taxes imposed on the
property by a taxing unit in a tax year is equal to the amount,
expressed in decimal form rounded to the nearest hundredth,
computed by multiplying the amount of taxes imposed on the property
by the taxing unit in the tax year by five percent.
(d) A property owner may receive a credit under this section
against the taxes imposed on the property by a taxing unit until the
first tax year after the tax year in which the United States Bureau
of the Census publishes information from a decennial census under
which the census tract in which the property is located is no longer
a food desert.
(e) To receive a credit under this section, a property owner
must file an application with the chief appraiser of the appraisal
district in which the property is located.
(f) The chief appraiser shall approve or deny an application
under this section for each taxing unit for which the appraisal
district appraises property. A determination of the chief
appraiser is subject to protest and appeal in the same manner as a
determination to approve or deny an exemption.
(g) The chief appraiser shall forward a copy of the
application to the assessor for each taxing unit that imposes taxes
on the property and certify to the assessor whether the chief
appraiser has approved or denied the application.
(h) A credit under this section, once allowed, need not be
claimed in subsequent years and applies to the property regardless
of any subsequent change in ownership of the property, provided
that the property otherwise continues to qualify for the credit.
(i) The comptroller shall adopt rules for the
administration of this section, including rules prescribing the
form of an application for the credit.
SECTION 2. This Act applies only to ad valorem taxes imposed
for a tax year beginning on or after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2026, but only
if the constitutional amendment proposed by the 89th Legislature,
Regular Session, 2025, to authorize the legislature to provide for
a credit against the ad valorem taxes imposed on real property used
for a grocery store or healthy corner store located in a food desert
is approved by the voters. If that amendment is not approved by the
voters, this Act has no effect.