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Bill

SB 2474

Relating to a credit against the ad valorem taxes imposed on real property used for a grocery store or healthy corner store located in a food desert.

89th Legislature (2025) Introduced by José Menéndez

Creates property tax credits for grocery and healthy corner stores in Texas food deserts to incentivize food retail access in underserved areas.

Referred to Local Government
#business&commerce--smallbusiness&minoritybusiness(i0051) #comptrollerofpublicaccounts(v2608) #food(s0761) #propertyinterests--realproperty(i0595) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-assessment&collection(i0798) #taxation--property-exemptions(i0793)
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Bill Summary · SB 2474

Legislative bill overview

SB 2474 proposes to create a property tax credit for real estate used as grocery stores or healthy corner stores specifically located in food deserts in Texas. The credit would reduce the ad valorem (property value-based) taxes owed on qualifying properties, effectively subsidizing the operation of these retail food establishments in underserved areas.

Why is this important

Food deserts—areas where residents lack convenient access to affordable, nutritious food—contribute to health disparities, obesity, and chronic disease in low-income communities. By reducing the tax burden on grocery retailers operating in these areas, the bill aims to make it financially more feasible for stores to operate in economically challenging locations, potentially improving food access and public health outcomes in underserved neighborhoods.

Potential points of contention

  • Property tax revenue impact: Municipalities and school districts depend on property tax revenue; tax credits reduce available funds for local services without identifying compensatory revenue sources
  • Definition and verification challenges: Terms like "food desert" and "healthy corner store" require clear definitions; determining eligibility and preventing misuse could be administratively complex and costly
  • Market effectiveness debate: Critics may argue tax credits are an indirect, inefficient subsidy compared to direct incentives or that market forces should determine retail location, while supporters contend structural barriers require government intervention

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

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