89R4299 CS-F
By: West, Bettencourt S.B. No. 2907
A BILL TO BE ENTITLED
AN ACT
relating to an exemption from ad valorem taxation of certain
perishable inventory held for sale at retail.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
adding Section 11.38 to read as follows:
Sec. 11.38. PERISHABLE RETAIL INVENTORY. (a) In this
section, "perishable inventory" means:
(1) any food or food product, other than alcohol,
intended for human consumption that may spoil or otherwise become
unfit for human consumption due to the nature, type, or physical
condition of the food, including:
(A) fresh produce, including fruits and
vegetables;
(B) fresh and processed meats, poultry, and fish;
(C) dairy products;
(D) bakery products;
(E) eggs;
(F) food that has been packaged, refrigerated, or
frozen; and
(G) any food intended for immediate human
consumption;
(2) a prescription drug or nonprescription drug, as
defined by Section 551.003, Occupations Code; and
(3) a dietary supplement or vitamin intended for human
or animal consumption.
(b) Subject to Subsection (c), a person is entitled to an
exemption from taxation of the total appraised value of the
tangible personal property the person owns that consists of
perishable inventory held for sale by the person at retail and for
which the person is not otherwise entitled to an exemption from
taxation.
(c) A person is not entitled to an exemption under
Subsection (b) for a tax year in which the person owes a delinquent
tax to the state or a taxing unit on January 1 of that tax year.
SECTION 2. This Act applies only to an ad valorem tax year
that begins 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, to authorize the legislature to exempt from
ad valorem taxation certain perishable inventory held for sale at
retail is approved by the voters. If that amendment is not approved
by the voters, this Act has no effect.