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SJR 46

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 Robert Nichols

Constitutional amendment authorizing Texas to exempt animal feed held for retail sale from property taxes, reducing retailer costs but potentially decreasing local government revenues.

Left pending in committee
#agriculture(i0020) #animals(i0035) #propertyinterests--personalproperty(i0600) #resolutions--constitutionalamendments(i0661) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793)
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Bill Summary · SJR 46

Legislative bill overview

SJR 46 proposes a constitutional amendment to allow the Texas legislature to exempt animal feed held for retail sale from ad valorem (property value-based) taxation. Currently, such tangible personal property is subject to local property taxes. This amendment would give lawmakers discretionary authority to eliminate that tax burden for retailers stocking feed inventory.

Why is this important

Animal feed retailers—primarily serving agricultural and livestock operations—currently pay property taxes on inventory sitting on shelves or in warehouses. Tax exemption could reduce operating costs for feed businesses and potentially lower feed prices for farmers and ranchers. However, it would also reduce revenue available to local taxing units (counties, school districts, municipalities) that depend on property tax collections for basic services.

Potential points of contention

  • Local government revenue loss: Removing a tax category reduces funding for schools, emergency services, and infrastructure without identifying replacement revenue sources
  • Selective tax policy: Critics may argue this creates unfair competitive advantages for one retail sector over others (grocery stores, hardware retailers still pay taxes on inventory)
  • Scope ambiguity: The bill's language ("animal feed") could be interpreted broadly or narrowly, creating uncertainty about which products qualify for exemption

Compiled from official sources — confirm details with the bill’s official record.

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