Under existing law, animal feed held in inventory awaiting sale is subject to local ad valorem property taxes, even though sales and use of feed are exempt from state sales taxes. Agricultural retailers currently pay property taxes on feed stock, which can increase costs for producers and consumers. Proposition 5 would amend the Texas Constitution to authorize the Legislature, by general law, to exempt tangible personal property consisting of animal feed held by the owner for retail sale from ad valorem taxation. The amendment itself does not require the exemption but grants the Legislature the power to enact and define it. Supporters argue that this change corrects a tax inequity in the agricultural supply chain by preventing double taxation on feed already exempt from sales taxes. They contend that feed retailers, producers, and consumers would see cost savings and that the exemption reflects the treatment of feed at other stages of production and use. Opponents counter that enshrining this flexibility in the Constitution is unnecessary since the Legislature can address tax exemptions through regular statutes. They warn that local governments could lose property tax revenue, potentially shifting the burden to other property owners or reducing funding for local services. If approved by voters, the Legislature has already provided implementing legislation. House Bill 1399, passed during the Regular Session of 2025, would take effect January 1, 2026, and exempt from ad valorem taxation animal feed that is exempt from sales taxes and held for retail sale, contingent on voter approval of this amendment.