Proposing a constitutional amendment 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.

89th Legislature (2025) Introduced by Trent Ashby and 8 co-sponsors

Constitutional amendment authorizes exemption from ad valorem tax for animal feed held for retail sale; lets Legislature enact the exemption by statute if voters approve.

Filed with the Secretary of State

#agriculture(i0020) #animals(i0035) #propertyinterests--personalproperty(i0600) #resolutions--constitutionalamendments(i0661) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793)

Summary — HJR 99

Title: Proposing a constitutional amendment 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.
Type: Joint resolution (constitutional amendment)
Introduced: November 19, 2024
Companion: SJR 46 (Senate)
Status: Passed both houses; enrolled and filed with the Secretary of State (filed 2025-05-13)

Purpose

HJR 99 proposes a change to the state constitution to give the Legislature explicit authority to exempt from ad valorem (property) taxation certain tangible personal property — specifically, animal feed that is held by its owner for sale at retail. The resolution itself does not create the tax exemption; it authorizes the Legislature to create such an exemption by statute if it chooses.

Key provisions

Adds constitutional authorization allowing the Legislature to exempt from ad valorem taxation:

Tangible personal property consisting of animal feed, when that feed is held by the owner of the property for sale at retail.

Does not specify statutory language, valuation method, thresholds, caps, effective dates, or eligibility details — those would be set by subsequent legislation if the amendment is approved by voters and the Legislature acts.

Who would be affected

Primary beneficiaries: owners/retailers who hold animal feed inventory for retail sale (e.g., feed stores, farm supply retailers).

Government entities affected: local taxing units (school districts, counties, cities, special districts) and appraisal districts because exempting inventory would reduce taxable property values and could lower property tax revenues.

Secondary effects: shifts in local tax burdens or need for compensating changes to tax rates or budgets if revenue is reduced.

Fiscal and policy implications

Potential reduction in local ad valorem tax revenue; the amount depends on how broadly the Legislature later defines the exemption and the quantity/value of exempted feed inventory.

Could lower operating costs for retail feed sellers and potentially change retail pricing or business decisions.

If enacted, the Legislature would need to address implementation details (statutory definitions, effective date, valuation rules, transitional provisions) and local governments may seek adjustments (rate changes, budget cuts, or alternate revenue sources).

Procedural timeline & next steps

Legislative history highlights: referred to Ways & Means (3/10/2025), committee hearings in March 2025, reported favorably, passed both chambers in early May 2025, enrolled and signed by both houses, and filed with the Secretary of State on 2025-05-13.

Because this is a constitutional amendment joint resolution, it must be submitted to voters in a statewide election. If a majority of voters approve the measure, the Legislature may then enact one or more statutes implementing the authorized exemption. The date of the public vote is set by the Legislature when it schedules the measure for a statewide or special election.