Relating to an exemption from ad valorem taxation of tangible personal property consisting of animal feed held by the owner of the property for sale at retail, the official text

H.B. No. 1399

AN ACT

relating to an exemption from ad valorem taxation of tangible

personal property consisting of animal feed held by the owner of the

property for sale at retail.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by

adding Section 11.162 to read as follows:

Sec. 11.162. ANIMAL FEED HELD FOR SALE AT RETAIL. The owner

of tangible personal property consisting of animal feed exempted

from sales and use taxes under Section 151.316(a)(3) or (4) is

entitled to an exemption from ad valorem taxation of the appraised

value of the tangible personal property if the property is held by

the owner for sale at retail.

SECTION 2. This Act applies only to ad valorem taxes imposed

for a tax year beginning on or after the effective date of this Act.

SECTION 3. This Act takes effect January 1, 2026, but only

if the constitutional amendment proposed by the 89th Legislature,

Regular Session, 2025, authorizing the legislature to exempt from

ad valorem taxation tangible personal property consisting of animal

feed held by the owner of the property for sale at retail is

approved by the voters. If that amendment is not approved by the

voters, this Act has no effect.

______________________________
______________________________

President of the Senate
Speaker of the House

I certify that H.B. No. 1399 was passed by the House on April

29, 2025, by the following vote: Yeas 125, Nays 10, 1 present, not

voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 1399 was passed by the Senate on May

9, 2025, by the following vote: Yeas 30, Nays 1.

______________________________

Secretary of the Senate

APPROVED: _____________________

Date

_____________________

Governor