BILL ANALYSIS Senate Research Center S.B. 994 89R1622 LHC-D By: Nichols Local Government 4/11/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT S.B. 994 exempts feed as taxable personal property for feed stores in Texas. Currently, feed is exempt from taxation at every point along the wayfrom the field where it's harvested to the farmer or rancher purchasing a bag of it, except when it is sitting in a store as inventory. S.B. 994 will state the owner of tangible personal property consisting of animal feed exempted from sales and use taxes under Section 151.316(a)(3) or (4) is entitled to an exemption from ad valorem taxation of the appraised value of the property if the property is held by the owner for sale at retail. Due to S.B. 994 dealing with personal tangible property, this legislation needs a constitutional amendment. S.J.R. 46 will propose a constitutional amendment authorizing the legislature to exempt from ad valorem taxation tangible personal property consisting of animal feed held by the owner of the property for sale at retail. As proposed, S.B. 994 amends current law relating to an exemption from ad valorem taxation of tangible personal property consisting of animal feed held by the owner of the property for sale at retail. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter B, Chapter 11, Tax Code, by adding Section 11.162, as follows: Sec. 11.162. ANIMAL FEED HELD FOR SALE AT RETAIL. Entitles the owner of tangible personal property consisting of animal feed exempted from sales and use taxes under Section 151.316(a)(3) (relating to tax exemption of feed for farm and ranch animals) or (4) (relating to tax exemption of feed for animals that are held for sale in the regular course of business) to an exemption from ad valorem taxation of the appraised value of the tangible personal property if the property is held by the owner for sale at retail. SECTION 2. Makes application of this Act prospective. SECTION 3. Effective date: January 1, 2026, contingent upon approval by the voters of the constitutional amendment authorizing the legislature to exempt from ad valorem taxation tangible personal property consisting of animal feed held by the owner of the property for sale at retail.
BILL ANALYSIS
Senate Research Center S.B. 994
89R1622 LHC-D By: Nichols
Local Government
4/11/2025
As Filed
Senate Research Center
S.B. 994
89R1622 LHC-D
By: Nichols
Local Government
4/11/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
S.B. 994 exempts feed as taxable personal property for feed stores in Texas. Currently, feed is exempt from taxation at every point along the wayfrom the field where it's harvested to the farmer or rancher purchasing a bag of it, except when it is sitting in a store as inventory.
S.B. 994 will state the owner of tangible personal property consisting of animal feed exempted from sales and use taxes under Section 151.316(a)(3) or (4) is entitled to an exemption from ad valorem taxation of the appraised value of the property if the property is held by the owner for sale at retail.
Due to S.B. 994 dealing with personal tangible property, this legislation needs a constitutional amendment. S.J.R. 46 will propose a constitutional amendment authorizing the legislature to exempt from ad valorem taxation tangible personal property consisting of animal feed held by the owner of the property for sale at retail.
As proposed, S.B. 994 amends current law relating to an exemption from ad valorem taxation of tangible personal property consisting of animal feed held by the owner of the property for sale at retail.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Subchapter B, Chapter 11, Tax Code, by adding Section 11.162, as follows:
Sec. 11.162. ANIMAL FEED HELD FOR SALE AT RETAIL. Entitles the owner of tangible personal property consisting of animal feed exempted from sales and use taxes under Section 151.316(a)(3) (relating to tax exemption of feed for farm and ranch animals) or (4) (relating to tax exemption of feed for animals that are held for sale in the regular course of business) to an exemption from ad valorem taxation of the appraised value of the tangible personal property if the property is held by the owner for sale at retail.
SECTION 2. Makes application of this Act prospective.
SECTION 3. Effective date: January 1, 2026, contingent upon approval by the voters of the constitutional amendment authorizing the legislature to exempt from ad valorem taxation tangible personal property consisting of animal feed held by the owner of the property for sale at retail.