The bill, S.B. No. 994, proposes an exemption from ad valorem taxation for tangible personal property consisting of animal feed that is held for sale at retail. It introduces a new section, Section 11.162, to the Tax Code, which states that owners of such property, who are already exempt from sales and use taxes under specific 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 exemption is contingent upon the approval of a constitutional amendment proposed by the 89th Legislature in 2025, which must be approved by voters. If the amendment is not approved, the Act will have no effect.

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