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Bill

SJR 78

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 Paul Bettencourt and 3 co-sponsors

Texas constitutional amendment allowing legislature to exempt perishable retail inventory from property tax, reducing business costs but potentially decreasing local government tax revenue.

Left pending in committee
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Bill Summary · SJR 78

Legislative bill overview

SJR 78 proposes a constitutional amendment allowing the Texas Legislature to exempt perishable inventory held for retail sale from ad valorem (property) taxation. Currently, such inventory is subject to property tax assessments. This would require voter approval to amend the Texas Constitution.

Why is this important

Property taxes on perishable goods inventory significantly impact grocery stores, restaurants, and other retail businesses with short product lifecycles, potentially affecting food prices and business profitability. The amendment would give the legislature discretion to reduce this tax burden, which could influence operating costs for food retailers and consumer prices, while also affecting local tax revenue that funds schools and municipal services.

Potential points of contention

  • Revenue impact on local governments: Schools, counties, and municipalities rely on ad valorem tax revenue; exempting perishable inventory could reduce funding for essential services unless offset by other revenue sources
  • Scope and definition disputes: Determining what qualifies as "perishable" inventory could be contentious—does it include frozen goods, canned items with long shelf lives, or only fresh produce and meat?
  • Fairness and competitive equity: Exempting certain retailers' inventory while other businesses remain taxed could raise concerns about unequal treatment and market distortion across different commercial sectors

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

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