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A BILL TO BE ENTITLED
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AN ACT
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relating to the definitions of certain terms for purposes of the |
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exemption from ad valorem taxation of farm products in the hands of |
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the producer. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.16(c), Tax Code, is amended to read as |
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follows: |
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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" has the meaning assigned by |
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Section 9.102, Business & Commerce Code, except that the term |
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includes [include livestock,] poultry, eggs, and timber, including |
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standing timber. |
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(2) "In the hands of the producer [,]" means: |
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(A) for farm products other than timber, |
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[livestock, poultry, and eggs, means] under the ownership of the |
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person who is using or financially providing for the physical |
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requirements of such farm products [livestock, poultry, and eggs] |
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on January 1 of the tax year; and |
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(B) [,] for timber, [means] standing timber or |
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timber that has been harvested and, on January 1 of the tax year, is |
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located on the real property on which it was produced and is under |
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the ownership of the person who owned the timber when it was |
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standing. |
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SECTION 2. This Act applies only to a tax year beginning on |
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or after January 1, 2026. |
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SECTION 3. This Act takes effect January 1, 2026, but only |
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if the constitutional amendment proposed by the 89th Legislature, |
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Regular Session, 2025, authorizing the legislature to define |
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certain terms for purposes of the exemption from ad valorem |
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taxation of farm products in the hands of the producer is approved |
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by the voters. If that amendment is not approved by the voters, |
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this Act has no effect. |