BILL ANALYSIS

 

 

Senate Research Center	S.J.R. 78
89R8905 CS-D	By: West; Bettencourt
	Local Government
	5/2/2025
	As Filed

 

 

 

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

According to the U.S. Bureau of Labor Statistics (BLS), food prices have risen sharply over the last two years.  In the Dallas-Arlington region alone, the BLS reports that the food price index rose 0.6 percent for the two months ending in January 2025. Prices for food at home (grocery store prices) advanced 1.0 percent over the two-month period, with four of the six major grocery store food group indexes increasing over this period. The meats, poultry, fish, and eggs index rose 2.7 percent, and the other food at home index advanced 1.7 percent. Food prices increased 1.8 percent over the year.

 

According to the U.S. Department of Agriculture's Economic Research Service, grocery taxes can affect how consumers spend their food dollars. Grocery taxes are associated with reduced food-at-home spending among lower income households. These households tend to spend a smaller share of their overall food budgets at grocery stores, supercenters, and other retail food venues when faced with a grocery tax.

 

S.B. 2907 and S.J.R 78 seek to help consumers by removing business personal property taxes on food and medication, allowing food prices to stabilize and potentially even result in lower food and drug costs for consumers.

 

S.B. 2907 is the enabling legislation for S.J.R. 78, which is a constitutional amendment that would be put before voters at the November 2025 election if passed by the legislature.

 

S.J.R. 78 �proposes a constitutional amendment to authorize the legislature to exempt from ad valorem taxation certain perishable inventory held for sale at retail.

 

RULEMAKING AUTHORITY

 

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

 

SECTION BY SECTION ANALYSIS

 

SECTION 1. Amends Article VIII, Texas Constitution, by adding Section 1-v, as follows:

 

Sec. 1-v. (a) Authorizes the legislature by general law to exempt from ad valorem taxation the total appraised value of the tangible personal property a person owns that consists of perishable inventory held for sale by the person at retail.

 

(b) Defines "perishable inventory."

 

SECTION 2. Requires that the proposed constitutional amendment be submitted to the voters at an election to be held November 4, 2025. Sets forth the required language of the ballot.