The bill amends the Texas Tax Code to include provisions for the treatment of land and equipment used in hydroponic farming for ad valorem tax purposes. Specifically, it adds a new subsection to Section 11.161, stating that farm or ranch products may be produced by hydroponic farming. Additionally, it modifies the definitions in Section 23.42 and Section 23.51 to explicitly include hydroponic farming as a recognized agricultural practice. This inclusion allows hydroponic farming to be considered alongside traditional agricultural activities for tax assessment purposes.

The changes ensure that hydroponic farming is recognized as a legitimate form of agriculture, thereby allowing those engaged in this practice to benefit from the same tax considerations as other agricultural operations. The bill will take effect on January 1, 2026, and applies to ad valorem taxes imposed for tax years beginning on or after that date.

Statutes affected:
Introduced: Tax Code 11.161, Tax Code 23.42, Tax Code 23.51 (Tax Code 11, Tax Code 23)