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A BILL TO BE ENTITLED
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AN ACT
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relating to an exemption from ad valorem taxation of certain |
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perishable inventory held for sale at retail. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by |
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adding Section 11.38 to read as follows: |
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Sec. 11.38. PERISHABLE RETAIL INVENTORY. (a) In this |
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section, "perishable inventory" means: |
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(1) any food or food product, other than alcohol, |
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intended for human consumption that may spoil or otherwise become |
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unfit for human consumption due to the nature, type, or physical |
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condition of the food, including: |
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(A) fresh produce, including fruits and |
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vegetables; |
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(B) fresh and processed meats, poultry, and fish; |
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(C) dairy products; |
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(D) bakery products; |
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(E) eggs; |
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(F) food that has been packaged, refrigerated, or |
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frozen; and |
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(G) any food intended for immediate human |
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consumption; |
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(2) a prescription drug or nonprescription drug, as |
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defined by Section 551.003, Occupations Code; and |
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(3) a dietary supplement or vitamin intended for human |
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or animal consumption. |
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(b) Subject to Subsection (c), a person is entitled to an |
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exemption from taxation of the total appraised value of the |
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tangible personal property the person owns that consists of |
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perishable inventory held for sale by the person at retail and for |
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which the person is not otherwise entitled to an exemption from |
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taxation. |
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(c) A person is not entitled to an exemption under |
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Subsection (b) for a tax year in which the person owes a delinquent |
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tax to the state or a taxing unit on January 1 of that tax year. |
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SECTION 2. This Act applies only to an ad valorem tax year |
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that begins on 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, to authorize the legislature to exempt from |
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ad valorem taxation certain perishable inventory held for sale at |
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retail is approved by the voters. If that amendment is not approved |
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by the voters, this Act has no effect. |