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A BILL TO BE ENTITLED
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AN ACT
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relating to the exemption from ad valorem taxation of farm |
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products. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 11.16(a) and (c), Tax Code, are amended |
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to read as follows: |
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(a) A producer is entitled to an exemption from taxation of |
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the farm products that the producer [he] produces and owns. A |
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nursery product, as defined by Section 71.041, Agriculture Code, is |
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a farm product for purposes of this section if it is in a growing |
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state. An egg, as defined by Section 132.001, Agriculture Code, is |
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a farm product for purposes of this section, regardless of whether |
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the egg is packaged. |
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(c) For purposes of this exemption, the following |
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definitions apply: |
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(1) "Farm products" include livestock, poultry, and |
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timber. |
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(2) "In the hands of the producer," for livestock, |
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[and] poultry, and eggs, means under the ownership of the person who |
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is financially providing for the physical requirements of such |
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livestock, [and] poultry, and eggs on January 1 of the tax year and, |
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for timber, means standing timber or timber that has been harvested |
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and, on January 1 of the tax year, is located on the real property on |
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which it was produced and is under the ownership of the person who |
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owned the timber when it was standing. |
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SECTION 2. This Act applies only to ad valorem taxes imposed |
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for a tax year that begins on or after the effective date of this |
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Act. |
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SECTION 3. This Act takes effect January 1, 2016. |