Bill > HB1399

This bill proposes a new tax exemption for animal feed held for retail sale, which would be exempt from ad valorem taxation (property tax). Specifically, the bill adds a new section to the Texas Tax Code that provides a property tax exemption for tangible personal property consisting of animal feed that is already exempt from sales and use taxes under certain existing provisions. The exemption applies only to animal feed that is held by the owner with the intent to sell at retail. The bill will only take effect on January 1, 2026, and is contingent upon voters approving a related constitutional amendment during the 2025 legislative session that specifically authorizes this type of property tax exemption. If the constitutional amendment is not approved by voters, the bill will have no effect. The tax exemption would apply to property taxes assessed for tax years beginning on or after the effective date of the act.

Budget and Finance, Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB1399