The bill, H.B. No. 4083, proposes an exemption from ad valorem taxation for certain perishable inventory held for retail sale in Texas. It introduces a new section, Section 11.38, to the Tax Code, defining "perishable inventory" to include various food products, prescription and nonprescription drugs, and dietary supplements that may spoil or become unfit for consumption. The bill stipulates that individuals are entitled to an exemption from taxation on the total appraised value of their perishable inventory, provided they do not owe any delinquent taxes as of January 1 of the tax year.

The bill specifies that the exemption will only apply to ad valorem tax years beginning on or after January 1, 2026, and will take effect on that date only if a related constitutional amendment, proposed by the 89th Legislature in 2025, is approved by voters. If the amendment is not approved, the bill will have no effect.

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