bill redefining farm products for a property tax exemption

The text as introduced · 304 words

90R24 MLH-D

By: Guillen
H.B. No. 114

A BILL TO BE ENTITLED

AN ACT

relating to the definitions of certain terms for purposes of the

exemption from ad valorem taxation of farm products in the hands of

the producer.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 11.16(c), Tax Code, is amended to read as

follows:

(c) For purposes of this exemption, the following

definitions apply:

(1) "Farm products" has the meaning assigned by

Section 9.102, Business & Commerce Code, except that the term

includes [ include livestock, ] poultry, eggs, and timber , including

standing timber .

(2) "In the hands of the producer [ , ]" means:

(A) for farm products other than timber,

[ livestock, poultry, and eggs, means ] under the ownership of the

person who is using or financially providing for the physical

requirements of such farm products [ livestock, poultry, and eggs ]

on January 1 of the tax year ; and

(B) [ , ] for timber, [ means ] standing timber or

timber that has been harvested and, on January 1 of the tax year, is

located on the real property on which it was produced and is under

the ownership of the person who owned the timber when it was

standing.

SECTION 2. This Act applies only to an ad valorem tax year

that begins on or after January 1, 2028.

SECTION 3. This Act takes effect January 1, 2028, but only

if the constitutional amendment proposed by the 90th Legislature,

Regular Session, 2027, to authorize the legislature to define

certain terms for purposes of the exemption from ad valorem

taxation of farm products in the hands of the producer is approved

by the voters. If that amendment is not approved by the voters,

this Act has no effect.