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A BILL TO BE ENTITLED
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AN ACT
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relating to the treatment for ad valorem tax purposes of land and |
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equipment used for hydroponic farming. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.161, Tax Code, is amended by adding |
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Subsection (c) to read as follows: |
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(c) For purposes of Subsection (a), farm or ranch products |
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may be produced by hydroponic farming. |
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SECTION 2. Section 23.42(d)(1), Tax Code, is amended to |
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read as follows: |
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(1) "Agriculture" means the use of land to produce |
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plant or animal products, including fish or poultry products, under |
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natural conditions, including hydroponic farming, but does not |
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include the processing of plant or animal products after harvesting |
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or the production of timber or forest products. |
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SECTION 3. Section 23.51(2), Tax Code, is amended to read as |
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follows: |
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(2) "Agricultural use" includes but is not limited to |
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the following activities: cultivating the soil, producing crops |
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for human food, animal feed, or planting seed or for the production |
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of fibers; floriculture, viticulture, and horticulture; raising or |
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keeping livestock; raising or keeping exotic animals for the |
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production of human food or of fiber, leather, pelts, or other |
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tangible products having a commercial value; planting cover crops |
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or leaving land idle for the purpose of participating in a |
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governmental program, provided the land is not used for residential |
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purposes or a purpose inconsistent with agricultural use; and |
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planting cover crops or leaving land idle in conjunction with |
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normal crop or livestock rotation procedure. The term also |
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includes the use of land to produce or harvest logs and posts for |
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the use in constructing or repairing fences, pens, barns, or other |
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agricultural improvements on adjacent qualified open-space land |
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having the same owner and devoted to a different agricultural use. |
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The term also includes the use of land for wildlife management. The |
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term also includes the use of land to raise or keep bees for |
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pollination or for the production of human food or other tangible |
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products having a commercial value, provided that the land used is |
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not less than 5 or more than 20 acres. The term also includes the |
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use of land for hydroponic farming. |
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SECTION 4. This Act applies only to ad valorem taxes imposed |
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for an ad valorem tax year that begins on or after the effective |
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date of this Act. |
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SECTION 5. This Act takes effect January 1, 2024. |