H.B. No. 255 amends Section 11.16(c) of the Texas Tax Code to clarify the definitions related to the exemption from ad valorem taxation for farm products in the hands of the producer. The bill specifies that "farm products" will now include eggs and timber, specifically standing timber, as defined by Section 9.102 of the Business & Commerce Code. Additionally, the definition of "in the hands of the producer" is refined to differentiate between farm products other than timber and timber itself, outlining the ownership criteria for both categories as of January 1 of the tax year.

The bill is set to take effect on January 1, 2026, contingent upon the approval of a constitutional amendment proposed by the 89th Legislature in 2025. If the amendment is not approved by voters, the provisions of this Act will not take effect. This legislative change aims to provide clearer guidelines for the taxation of farm products, ensuring that producers understand their tax obligations and exemptions.

Statutes affected:
Introduced: Tax Code 11.16 (Tax Code 11)
House Committee Report: Tax Code 11.16 (Tax Code 11)
Engrossed: Tax Code 11.16 (Tax Code 11)