HB 4759

relating to the treatment for ad valorem tax purposes of land and
equipment used for hydroponic farming.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 11.161, Tax Code, is amended by adding
Subsection (c) to read as follows:
(c)  For purposes of Subsection (a), farm or ranch products
may be produced by hydroponic farming.
SECTION 2.  Section 23.42(d)(1), Tax Code, is amended to
(1)  "Agriculture" means the use of land to produce
plant or animal products, including fish or poultry products, under
natural conditions, including hydroponic farming, but does not
include the processing of plant or animal products after harvesting
or the production of timber or forest products.
SECTION 3.  Section 23.51(2), Tax Code, is amended to read as
(2)  "Agricultural use" includes but is not limited to
the following activities:  cultivating the soil, producing crops
for human food, animal feed, or planting seed or for the production
of fibers; floriculture, viticulture, and horticulture; raising or
keeping livestock; raising or keeping exotic animals for the
production of human food or of fiber, leather, pelts, or other
tangible products having a commercial value; planting cover crops
or leaving land idle for the purpose of participating in a
governmental program, provided the land is not used for residential
purposes or a purpose inconsistent with agricultural use; and
planting cover crops or leaving land idle in conjunction with
normal crop or livestock rotation procedure.  The term also
includes the use of land to produce or harvest logs and posts for
the use in constructing or repairing fences, pens, barns, or other
agricultural improvements on adjacent qualified open-space land
having the same owner and devoted to a different agricultural use.
The term also includes the use of land for wildlife management.  The
term also includes the use of land to raise or keep bees for
pollination or for the production of human food or other tangible
products having a commercial value, provided that the land used is
not less than 5 or more than 20 acres.  The term also includes the
use of land for hydroponic farming.
SECTION 4.  This Act applies only to ad valorem taxes imposed
for an ad valorem tax year that begins on or after the effective
SECTION 5.  This Act takes effect January 1, 2026.