By McReynolds                                         H.B. No. 1013
         77R3921 JD-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the exemption of farm products from ad valorem
 1-3     taxation.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 11.16(c), Tax Code, is amended to read as
 1-6     follows:
 1-7           (c)  For purposes of this exemption, the following
 1-8     definitions apply:
 1-9                 (1)  "Farm products" include livestock, poultry, and
1-10     timber.
1-11                 (2)  "In the hands of the producer," for livestock and
1-12     poultry, means under the ownership of the person who is financially
1-13     providing for the physical requirements of such livestock and
1-14     poultry on January 1 of the tax year and, for timber, means
1-15     standing timber or timber that has been harvested and, on January 1
1-16     of the tax year, is located on the real property on which it was
1-17     produced or [and] is under the ownership of the person who owned
1-18     the timber when it was standing.
1-19           SECTION 2. This Act takes effect January 1, 2002, and applies
1-20     only to a tax year that begins on or after that date.