Relating to an exemption from ad valorem taxation of certain perishable inventory held for sale at retail.

89(R) HB 4083 - Introduced version - Bill Text

89R4299 CS-F

By: Button

H.B. No. 4083

A BILL TO BE ENTITLED

AN ACT

relating to an exemption from ad valorem taxation of certain

perishable inventory held 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 11.38 to read as follows:

Sec.

11.38.

PERISHABLE RETAIL INVENTORY. (a)

In this

section, "perishable inventory" means:

(1)

any food or food product, other than alcohol,

intended for human consumption that may spoil or otherwise become

unfit for human consumption due to the nature, type, or physical

condition of the food, including:

(A)

fresh produce, including fruits and

vegetables;

(B) fresh and processed meats, poultry, and fish;

(C) dairy products;

(D) bakery products;

(E) eggs;

(F)

food that has been packaged, refrigerated, or

frozen; and

(G)

any food intended for immediate human

consumption;

(2)

a prescription drug or nonprescription drug, as

defined by Section 551.003, Occupations Code; and

(3)

a dietary supplement or vitamin intended for human

or animal consumption.

(b)

Subject to Subsection (c), a person is entitled to an

exemption from taxation of the total appraised value of the

tangible personal property the person owns that consists of

perishable inventory held for sale by the person at retail and for

which the person is not otherwise entitled to an exemption from

taxation.

(c)

A person is not entitled to an exemption under

Subsection (b) for a tax year in which the person owes a delinquent

tax to the state or a taxing unit on January 1 of that tax year.

SECTION 2. This Act applies only to an ad valorem tax year

that begins on or after January 1, 2026.

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

if the constitutional amendment proposed by the 89th Legislature,

Regular Session, 2025, to authorize the legislature to exempt from

ad valorem taxation certain perishable inventory held for sale at

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

by the voters, this Act has no effect.