Monitoring the Session

HB 4083

Button’s ‘Perishable’ Inventory Tax Break Covers Prescription Drugs

Died in committee

Verdict: Smells

SmellsNeeds review
Rep. Angie Chen ButtonRHouse 112
Both charges, and why
Caption mismatch

THE TEXT

“a prescription drug or nonprescription drug, as defined by Section 551.003, Occupations Code; and”…

Bill text, introduced version (I)

The caption sells an exemption for 'perishable' inventory. The definition also pulls in prescription and over-the-counter drugs and supplements, which the text never ties to spoilage.

Caption mismatch
Carve-out

THE TEXT

…“perishable inventory held for sale by the person at retail”…

Bill text, introduced version (I)

The tax break goes only to retailers holding food, drug and supplement stock. Other retail inventory stays taxable, though the caption openly says the bill is narrow.

Carve-out

Needs review · Nov 1, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to an exemption from ad valorem taxation of certain perishable inventory held for sale at retail.

Caption from analyzed text · version I.

Summary

Caption: perishable. Bill: also over-the-counter drugs and vitamins, never tied to spoilage. Starts 2026, if voters agree.

The bill exempts from property tax the full value of 'perishable inventory' that a business owns and holds for retail sale, as long as the business owes no overdue taxes on January 1. 'Perishable inventory' is defined to cover food that can spoil, but also prescription drugs, over-the-counter drugs, and dietary supplements and vitamins for people or animals. Grocery stores, pharmacies, and other retailers would stop paying property tax on that stock starting with the 2026 tax year, but only if voters approve a matching constitutional amendment.

Labels

Labels: ACROSS THE AISLE. Joint authors: 3 Republicans, 2 Democrats. Party as the Legislative Reference Library lists it for the 89th Legislature.PENDING FOREVER. Heard by the House Ways & Means committee on Apr 28, 2025 and left pending. Never voted out. The bill died.

Receipt

The receipt

89R-HB4083 · 2025-03-07

SOLD BY

Rep. Angie Chen ButtonRHouse 112 Rep. Giovanni CapriglioneRHouse 98 Rep. Barbara Gervin-HawkinsDHouse 120

+ 2 more authors

ITEM

relating to an exemption from ad valorem taxation of certain perishable inventory held for sale at retail.

WHAT IT DOES

Caption: perishable. Bill: also over-the-counter drugs and vitamins, never tied to spoilage. Starts 2026, if voters agree.

The bill exempts from property tax the full value of 'perishable inventory' that a business owns and holds for retail sale, as long as the business owes no overdue taxes on January 1. 'Perishable inventory' is defined to cover food that can spoil, but also prescription drugs, over-the-counter drugs, and dietary supplements and vitamins for people or animals. Grocery stores, pharmacies, and other retailers would stop paying property tax on that stock starting with the 2026 tax year, but only if voters approve a matching constitutional amendment.

CHARGES

[x] CAPTION MISMATCHanalysis confidence 50%

THE TEXT

“a prescription drug or nonprescription drug, as defined by Section 551.003, Occupations Code; and”…

Bill text, introduced version (I)

The caption sells an exemption for 'perishable' inventory. The definition also pulls in prescription and over-the-counter drugs and supplements, which the text never ties to spoilage.

[x] CARVE-OUTanalysis confidence 40%

THE TEXT

…“perishable inventory held for sale by the person at retail”…

Bill text, introduced version (I)

The tax break goes only to retailers holding food, drug and supplement stock. Other retail inventory stays taxable, though the caption openly says the bill is narrow.

TOTAL

Net to General Revenue · FY 2026$0

LBB estimate, flow · fiscal note version I · ( ) = negative · source

Sources

Fiscal note · version I · April 27, 2025

Estimated Two-year Net Impact to General Revenue Related Funds for HB4083, As Introduced: a negative impact of ($55,031,000) through the biennium ending August 31, 2027. However, there would be a negative impact of ($136,471,000) in the biennium ending August 31, 2029.

First year · FY 2026 · $0

Probable Net Positive/(Negative) Impact to General Revenue Related Funds

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

  1. Filed
  2. Read first time
  3. Referred to Ways & Means
  4. Scheduled for public hearing on . . .
  5. Considered in public hearing
  6. Committee substitute considered in committee
  7. Testimony taken/registration(s) recorded in committee
  8. Left pending in committee
FILED UNDER

CORPORATE WELFARE

THE TEXT

…“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”…

Bill text, introduced version (I)

The bill gives retailers of food, drugs and supplements a full property tax exemption on their inventory.

Smells

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Angie Chen Button

Donors

Texans for Lawsuit Reform PAC$762KTexas Conservative Majority PAC$633KTexas Sands PAC$265K

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 28, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texans for Lawsuit Reform PAC$762,071.41

Texans for Lawsuit Reform PAC

$762,071.41

Cash
$55,000.00
Paid by others
$707,071.41
Total
$762,071.41
advertising $195,740.00digital $125,000.00tv $125,000.00grassroots $121,840.00mail $61,081.06Other filed descriptions $45,000.00polling $33,410.35

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 27, 2025 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100992420, 101010417, 101032581, 101042428, 101058017, 101069955.

Texas Conservative Majority PAC$632,800.00

Texas Conservative Majority PAC

$632,800.00

Cash
$102,000.00
Paid by others
$530,800.00
Total
$632,800.00
canvassing $300,000.00digital $225,000.00polling $5,800.00

Also funds 42 other sitting lawmakers.

Derived recipient stock · Jan 23, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Feb 20, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101035728, 101058017, 101069955.

Texas Sands PAC$264,500.00

Texas Sands PAC

$264,500.00

Cash
$264,500.00
Paid by others
$0.00
Total
$264,500.00

Also funds 121 other sitting lawmakers.

Derived recipient stock · Jul 3, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Dec 23, 2025 to Oct 9, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101010417, 101035728, 101058017, 101069955.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Texans for Lawsuit Reform PAC

$762,071.41

Cash
$55,000.00
Paid by others
$707,071.41
Total
$762,071.41
advertising $195,740.00digital $125,000.00tv $125,000.00grassroots $121,840.00mail $61,081.06Other filed descriptions $45,000.00polling $33,410.35

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 27, 2025 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100992420, 101010417, 101032581, 101042428, 101058017, 101069955.

×

Texas Conservative Majority PAC

$632,800.00

Cash
$102,000.00
Paid by others
$530,800.00
Total
$632,800.00
canvassing $300,000.00digital $225,000.00polling $5,800.00

Also funds 42 other sitting lawmakers.

Derived recipient stock · Jan 23, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Feb 20, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101035728, 101058017, 101069955.

×

Texas Sands PAC

$264,500.00

Cash
$264,500.00
Paid by others
$0.00
Total
$264,500.00

Also funds 121 other sitting lawmakers.

Derived recipient stock · Jul 3, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Dec 23, 2025 to Oct 9, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101010417, 101035728, 101058017, 101069955.

Votes

No floor vote loaded for this bill.

Fiscal
Net to General Revenue · FY 2026$0

LBB estimate, flow · fiscal note version I · ( ) = negative · source

Sources

Fiscal note · version I · April 27, 2025

Estimated Two-year Net Impact to General Revenue Related Funds for HB4083, As Introduced: a negative impact of ($55,031,000) through the biennium ending August 31, 2027. However, there would be a negative impact of ($136,471,000) in the biennium ending August 31, 2029.

First year · FY 2026 · $0

Probable Net Positive/(Negative) Impact to General Revenue Related Funds

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

Sources

Texas House · Filed Mar 7, 2025

04/28/2025 H Left pending in committee

Texas Legislature Online · Introduced

Data snapshot Nov 1, 2026 at 3:12 PM CST. Grades, charges, quotes and corrections follow the published record.

House committee · Ways & Means · Final status: Died in committee

Companion

SB 2907 by West (identical)

Enabling legislation for HJR 174.

Subjects

Property Interests--Personal Property

Taxation--Property-Appraisals & Appraisal Districts

Taxation--Property-Exemptions

FOOD

MEDICINE & PRESCRIPTION DRUGS

Text

The text as introduced · 347 words

89R4299 CS-F

By: Button
H.B. No. 4083

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.