H.B. No. 275

AN ACT

relating to the exemption from ad valorem taxation of farm products.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Sections 11.16(a) and (c), Tax Code, are amended to read as follows:

(a) A producer is entitled to an exemption from taxation of the farm products that the producer [he] produces and owns. A nursery product, as defined by Section 71.041, Agriculture Code, is a farm product for purposes of this section if it is in a growing state. An egg, as defined by Section 132.001, Agriculture Code, is a farm product for purposes of this section, regardless of whether the egg is packaged.

(c) For purposes of this exemption, the following definitions apply:

(1) "Farm products" include livestock, poultry, and timber.

(2) "In the hands of the producer," for livestock, [and] poultry, and eggs, means under the ownership of the person who is financially providing for the physical requirements of such livestock, [and] poultry, and eggs on January 1 of the tax year and, for timber, means standing timber or timber that has been harvested and, on January 1 of the tax year, is located on the real property on which it was produced and is under the ownership of the person who owned the timber when it was standing.

SECTION 2. This Act applies only to ad valorem taxes imposed for a tax year that begins on or after the effective date of this Act.

SECTION 3. This Act takes effect January 1, 2016.

______________________________ ______________________________

President of the Senate Speaker of the House

I certify that H.B. No. 275 was passed by the House on April 22, 2015, by the following vote: Yeas 142, Nays 0, 2 present, not voting.

______________________________ Chief Clerk of the House

I certify that H.B. No. 275 was passed by the Senate on May 12, 2015, by the following vote: Yeas 30, Nays 0.

______________________________ Secretary of the Senate APPROVED: _____________________

Date

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Governor