HB4759 - Relating to the treatment for ad valorem tax purposes of land and equipment used for hydroponic farming.

  89R5501 MLH-F     By: Harris Davila H.B. No. 4759       A BILL TO BE ENTITLED   AN ACT   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   read as follows:                (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   follows:                (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   date of this Act.          SECTION 5.  This Act takes effect January 1, 2026.