H.B. No. 1399 proposes an amendment to the Texas Tax Code to provide an exemption from ad valorem taxation for tangible personal property consisting of animal feed that is held for sale at retail. The new section, 11.162, specifies that owners of such property, who are already exempt from sales and use taxes under certain provisions, will also be entitled to an exemption from ad valorem taxation based on the appraised value of the animal feed they hold for retail sale.

The bill stipulates that this exemption will only apply to ad valorem taxes imposed for tax years beginning on or after the effective date of the Act, which is set for January 1, 2026. However, the implementation of this Act is contingent upon the approval of a constitutional amendment proposed by the 89th Legislature, Regular Session, 2025, which would authorize the legislature to grant this exemption. If the amendment is not approved by voters, the Act will have no effect.

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