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A BILL TO BE ENTITLED
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AN ACT
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relating to an exemption from sales and use taxes for exotic |
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animals. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 151.316(a), Tax Code, is amended to read |
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as follows: |
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(a) Subject to Section 151.1551, the following items are |
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exempted from the taxes imposed by this chapter: |
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(1) horses, mules, and work animals; |
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(2) animal life the products of which ordinarily |
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constitute food for human consumption; |
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(3) feed for farm and ranch animals; |
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(4) feed for animals that are held for sale in the |
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regular course of business; |
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(5) seeds and annual plants the products of which: |
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(A) ordinarily constitute food for human |
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consumption; |
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(B) are to be sold in the regular course of |
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business; or |
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(C) are used to produce feed for animals exempted |
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by this section; |
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(6) fertilizers, fungicides, insecticides, |
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herbicides, defoliants, and desiccants exclusively used or |
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employed on a farm or ranch in the production of: |
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(A) food for human consumption; |
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(B) feed for animal life; or |
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(C) other agricultural products to be sold in the |
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regular course of business; |
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(7) machinery and equipment exclusively used or |
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employed on a farm or ranch in the building or maintaining of roads |
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or water facilities or in the production of: |
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(A) food for human consumption; |
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(B) grass; |
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(C) feed for animal life; or |
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(D) other agricultural products to be sold in the |
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regular course of business; |
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(8) machinery and equipment exclusively used in, and |
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pollution control equipment required as a result of, the |
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processing, packing, or marketing of agricultural products by an |
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original producer at a location operated by the original producer |
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for processing, packing, or marketing the producer's own products |
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if: |
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(A) 50 percent or more of the products processed, |
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packed, or marketed at or from the location are produced by the |
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original producer and not purchased or acquired from others; and |
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(B) the producer does not process, pack, or |
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market for consideration any agricultural products that belong to |
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other persons in an amount greater than five percent of the total |
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agricultural products processed, packed, or marketed by the |
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producer; |
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(9) ice exclusively used by commercial fishing boats |
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in the storing of aquatic species including but not limited to |
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shrimp, other crustaceans, finfish, mollusks, and other similar |
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creatures; |
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(10) tangible personal property, including a tire, |
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sold or used to be installed as a component part of a motor vehicle, |
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machinery, or other equipment exclusively used or employed on a |
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farm or ranch in the building or maintaining of roads or water |
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facilities or in the production of: |
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(A) food for human consumption; |
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(B) grass; |
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(C) feed for animal life; or |
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(D) other agricultural products to be sold in the |
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regular course of business; |
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(11) machinery and equipment exclusively used in an |
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agricultural aircraft operation, as defined by 14 C.F.R. Section |
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137.3; |
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(12) tangible personal property incorporated into a |
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structure that is used for the disposal of poultry carcasses in |
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accordance with Section 26.303, Water Code; |
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(13) tangible personal property incorporated into or |
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attached to a structure that is located on a commercial dairy farm, |
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is used or employed exclusively for the production of milk, and is: |
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(A) a free-stall dairy barn; or |
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(B) a dairy structure used solely for maternity |
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purposes; [and] |
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(14) telecommunications services exclusively provided |
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or used for the navigation of machinery and equipment exclusively |
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used or employed on a farm or ranch in the building or maintaining |
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of roads or water facilities or in the production of: |
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(A) food for human consumption; |
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(B) grass; |
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(C) feed for animal life; or |
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(D) other agricultural products to be sold in the |
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regular course of business; and |
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(15) exotic animals, as defined by Section 23.51. |
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SECTION 2. The change in law made by this Act does not |
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affect tax liability accruing before the effective date of this |
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Act. That liability continues in effect as if this Act had not been |
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enacted, and the former law is continued in effect for the |
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collection of taxes due and for civil and criminal enforcement of |
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the liability for those taxes. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2025. |