House Bill 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, in addition to the existing definition. Furthermore, it redefines "in the hands of the producer" to mean that for farm products other than timber, it refers to the ownership of the person responsible for the physical requirements of those products as of January 1 of the tax year. For timber, it clarifies that it pertains to standing timber or harvested timber located on the property where it was produced, under the ownership of the person who owned it when it was standing.

The provisions of this bill will only take effect for tax years beginning on or after 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 bill will have no effect.

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)