Proposing a constitutional amendment to authorize the legislature to exempt from ad valorem taxation certain perishable inventory held for sale at retail.

89th Legislature (2025) Introduced by Angie Button

Proposes a constitutional amendment to let the Legislature exempt some perishable, retail-held inventory from ad valorem taxes; specifics and voter approval follow in law.

Left pending in committee

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Purpose and intent

The bill seeks to amend the state constitution to give the Legislature the authority to create exemptions from ad valorem property taxes for specific categories of perishable inventory that are held for sale at retail.

As a constitutional amendment, passage would empower, but not automatically create, exemptions; implementing details would follow through statutory action by the Legislature and would still require voter approval to become effective.

Key provisions

Authorizes the Legislature to exempt from ad valorem taxation certain perishable inventory held for sale at retail.

The amendment would alter constitutional scope to permit future exemptions; it does not itself specify which items qualify or the exemption parameters. Those specifics would be determined by later legislation and administrative rules if the amendment is approved.

Affected parties and scope

Retail businesses and distributors holding perishable inventory classified as personal property could be directly impacted, depending on how exemptions are ultimately defined and applied in future statutes.

Local taxing jurisdictions and appraisal districts could experience changes in property tax base and revenue, contingent on future exempting provisions enacted under the constitutional authority authorized by the amendment.

Procedural history and timeline

Introduced: March 7, 2025

Status: Left pending in committee

Legislative actions:

March 31, 2025: Read first time; referred to Ways & Means
March 31, 2025: Referred to Ways & Means
April 28, 2025: Public hearing held; testimony taken and registration recorded
April 28, 2025: Left pending in committee

Related measure: SJR 78 (companion bill)

Constitutional and electoral process

As a constitutional amendment, passage requires:

Approval by both chambers of the Legislature
A statewide voter referendum for final approval
If approved by voters, the amendment becomes part of the state constitution

The companion Senate measure (SJR 78) aligns with this process and would likely follow a similar path.

Potential implications and considerations

Fiscal impact: The ultimate effect on state and local tax revenue depends on how broadly the exemption is defined and applied in future laws. Exempting perishable inventory could reduce taxable property base for some retailers, with corresponding revenue effects that would need to be balanced in budgeting.

Policy considerations: The proposal raises questions about how “perishable inventory” would be defined, which retail sectors would qualify, and how exemptions would interact with existing exemptions and appraisal practices.

Next steps: If the committee advances the measure, it would require favorable votes in both chambers and, ultimately, voter approval. The companion SJR 78 may influence legislative routing and timing.

Note: The provided material does not include the exact statutory language or definitions; this summary reflects the bill’s stated purpose and the information available from introduced and committee actions.

Bill