Bill > SB2907

This bill creates a new tax exemption for perishable retail inventory in Texas, which includes a wide range of food products (such as fresh produce, meats, dairy, bakery items, eggs, and packaged/refrigerated foods), prescription and non-prescription drugs, and dietary supplements. Under the proposed legislation, businesses would be entitled to a full exemption from taxation on the total appraised value of their perishable inventory held for sale at retail, with one important caveat: businesses cannot claim this exemption if they owe any delinquent taxes to the state or a taxing unit as of January 1 of the tax year. The bill is contingent upon voter approval of a corresponding constitutional amendment during the 89th Legislature's Regular Session in 2025, and if approved, would take effect on January 1, 2026, applying only to ad valorem tax years beginning on or after that date. The purpose of this bill appears to be providing tax relief to retailers who deal with inventory that can quickly spoil or become unsellable, thereby reducing their tax burden.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB2907