HB4083 - Relating to an exemption from ad valorem taxation of certain perishable inventory held for sale at retail.

  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.