HB 1399

relating to an exemption from ad valorem taxation of tangible
personal property consisting of animal feed held by the owner of the
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
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.