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A BILL TO BE ENTITLED
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AN ACT
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relating to the exemption of certain assets used for agricultural |
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production from property taxes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11, Tax Code, is amended by adding |
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section 11.162 to read as follows: |
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Sec. 11.162. FARM PRODUCTION INPUTS. (a) A producer is |
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entitled to an exemption from taxation of any resources that the |
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producer utilizes for the purpose of production. |
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(b) Farm production inputs in the hands of the producer are |
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exempt. |
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(c) For purposes of this exemption, the following |
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definitions apply: |
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(1) "Farm production inputs" include seeds, weaned |
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animals, fertilizer, pesticides, feed, and any other resources that |
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are necessary to produce crops, fruit, flowers, and other products |
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of the soil, or farm products defined in section 11.16. |
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(2) "In the hands of the producer," means under the |
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ownership of the person who is utilizing farm production inputs |
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such as seeds, weaned animals, fertilizer, pesticides, feed, and |
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any resources necessary to begin production, on January 1 of the tax |
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year for the purpose of producing crops, fruits, flowers, and other |
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products of the soil, or farm products defined by section 11.16. |
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SECTION 2. This Act takes effect September 1, 2023 |