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A BILL TO BE ENTITLED
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AN ACT
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relating to the exemption from limited sales, excise and use |
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taxation of tangible personal property incorporated into or |
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attached to certain specific purpose agricultural structures. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 151.316(a), Tax Code, is amended as |
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follows: |
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(a) The following items are exempted from the taxes imposed |
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by this chapter: |
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(1) horses, mules, and work animals; |
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(2) animal life, the products of which ordinarily |
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constitute food for human consumption; |
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(3) feed for farm and ranch animals; |
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(4) feed for animals that are held for sale in the |
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regular course of business; |
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(5) seeds and annual plants the products of which: |
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(A) ordinarily constitute food for human |
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consumption; |
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(B) are to be sold in the regular course of |
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business; or |
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(C) are used to produce feed for animals exempted |
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by this section; |
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(6) fertilizers, fungicides, insecticides, |
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herbicides, defoliants, and desiccants exclusively used or |
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employed on a farm or ranch in the production of: |
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(A) food for human consumption; |
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(B) feed for animal life; or |
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(C) other agricultural products to be sold in the |
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regular course of business; |
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(7) machinery and equipment exclusively used or |
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employed on a farm or ranch in the building or maintaining of roads |
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or water facilities or in the production of: |
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(A) food for human consumption; |
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(B) grass; |
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(C) feed for animal life; or |
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(D) other agricultural products to be sold in the |
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regular course of business; |
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(8) machinery and equipment exclusively used in, and |
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pollution control equipment required as a result of, the |
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processing, packing, or marketing of agricultural products by an |
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original producer at a location operated by the original producer |
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for processing, packing, or marketing the producer's own products |
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if: |
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(A) 50 percent or more of the products processed, |
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packed, or marketed at or from the location are produced by the |
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original producer and not purchased or acquired from others; and |
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(B) the producer does not process, pack, or |
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market for consideration any agricultural products that belong to |
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other persons in an amount greater than five percent of the total |
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agricultural products processed, packed, or marketed by the |
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producer; |
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(9) ice exclusively used by commercial fishing boats |
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in the storing of aquatic species including but not limited to |
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shrimp, other crustaceans, finfish, mollusks, and other similar |
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creatures; |
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(10) tangible personal property, including a tire, |
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sold or used to be installed as a component part of a motor vehicle, |
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machinery, or other equipment exclusively used or employed on a |
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farm or ranch in the building or maintaining of roads or water |
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facilities or in the production of: |
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(A) food for human consumption; |
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(B) grass; |
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(C) feed for animal life; or |
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(D) other agricultural products to be sold in the |
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regular course of business; |
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(11) machinery and equipment exclusively used in an |
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agricultural aircraft operation, as defined by 14 C.F.R. Section |
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137.3; [and] |
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(12) tangible personal property incorporated into a |
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structure that is used for the disposal of poultry carcasses in |
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accordance with Section 26.303, Water Code; and |
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(13) tangible personal property incorporated into or |
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attached to a commercial dairy free stall barn, a commercial dairy |
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structure used solely for maternity purposes, or a commodity |
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structure used as batch plants to measure, mix and process finished |
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feed for dairy cows. |
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SECTION 2. The change in law made by this Act by the |
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amendment of Section 151.316(a), Tax Code, does not affect tax |
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liability accruing before the effective date of this Act. That |
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liability continues in effect as if this Act had not been enacted, |
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and the former law is continued in effect for the collection of |
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taxes due and for civil and criminal enforcement of the liability |
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for those taxes. This Act shall not, however, be cited or utilized |
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for the purpose of asserting that the changes made by this Act |
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indicate that a tax liability was properly accrued for any prior |
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period. |
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SECTION 3. This Act takes effect September 1, 2011. |