73R2406 DAK-D
By Swinford, et al. H.B. No. 398
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to exempting certain underground irrigation systems from
1-3 the sales tax.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 151.316, Tax Code, is amended to read as
1-6 follows:
1-7 Sec. 151.316. Agricultural Items. (a) The following items
1-8 are exempted from the taxes imposed by this chapter:
1-9 (1) horses, mules, and work animals;
1-10 (2) animal life the products of which ordinarily
1-11 constitute food for human consumption;
1-12 (3) feed for farm and ranch animals;
1-13 (4) feed for animals that are held for sale in the
1-14 regular course of business;
1-15 (5) seeds and annual plants the products of which:
1-16 (A) ordinarily constitute food for human
1-17 consumption;
1-18 (B) are to be sold in the regular course of
1-19 business; or
1-20 (C) are used to produce feed for animals
1-21 exempted by this section;
1-22 (6) fertilizers, fungicides, insecticides, herbicides,
1-23 defoliants, and desiccants exclusively used or employed on a farm
1-24 or ranch in the production of:
2-1 (A) food for human consumption;
2-2 (B) feed for animal life; or
2-3 (C) other agricultural products to be sold in
2-4 the regular course of business;
2-5 (7) machinery and equipment exclusively used or
2-6 employed on a farm or ranch in the building or maintaining of roads
2-7 or water facilities or in the production of:
2-8 (A) food for human consumption;
2-9 (B) grass;
2-10 (C) feed for animal life; or
2-11 (D) other agricultural products to be sold in
2-12 the regular course of business;
2-13 (8) machinery and equipment exclusively used in the
2-14 processing, packing, or marketing of agricultural products by the
2-15 original producer at a location operated by the original producer
2-16 exclusively for processing, packing, or marketing the producer's
2-17 own products; and
2-18 (9) ice exclusively used by commercial fishing boats
2-19 in the storing of aquatic species including but not limited to
2-20 shrimp, other crustaceans, finfish, mollusks, and other similar
2-21 creatures.
2-22 (b) Tangible personal property sold or used to be installed
2-23 as a component of an underground irrigation system is exempt from
2-24 the taxes imposed by this chapter if the system is exclusively used
2-25 or employed on a farm or ranch in the production of:
2-26 (1) food for human consumption;
2-27 (2) grass;
3-1 (3) feed or forage for:
3-2 (A) animal life the products of which ordinarily
3-3 constitutes food for human consumption; or
3-4 (B) horses, mules, and work animals; or
3-5 (4) other agricultural products to be sold in the
3-6 regular course of business.
3-7 SECTION 2. (a) This Act takes effect on the first day of
3-8 the first calendar quarter beginning on or after the date that this
3-9 Act becomes law.
3-10 (b) The change in law made by this Act does not affect taxes
3-11 imposed before the effective date of this Act, and the law in
3-12 effect before the effective date of this Act is continued in effect
3-13 for purposes of the liability for and collection of those taxes.
3-14 SECTION 3. The importance of this legislation and the
3-15 crowded condition of the calendars in both houses create an
3-16 emergency and an imperative public necessity that the
3-17 constitutional rule requiring bills to be read on three several
3-18 days in each house be suspended, and this rule is hereby suspended,
3-19 and that this Act take effect and be in force from and after its
3-20 passage, and it is so enacted.