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HB 1399

Relating to an exemption from ad valorem taxation of 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 9 co-sponsors

Texas exempts retail animal feed inventory from property taxation, reducing seller costs but decreasing local tax revenue for schools and government services.

See remarks for effective date
#agriculture(i0020) #animals(i0035) #propertyinterests--personalproperty(i0600) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793)
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Bill Summary · HB 1399

Legislative bill overview

HB 1399 exempts animal feed held by retail sellers from ad valorem (property) taxation in Texas. This means businesses that stock and sell animal feed inventory will no longer pay annual property taxes on that specific inventory. The bill became effective upon the Governor's signature on May 24, 2025.

Why is this important

Animal feed retailers currently pay property taxes on their inventory as tangible personal property, which increases their operating costs and overhead. This exemption could lower prices for consumers purchasing feed and reduce compliance burdens for small feed retailers. The fiscal impact depends on how much inventory Texas retailers maintain and the existing tax rates in their jurisdictions.

Potential points of contention

  • Revenue impact: Local governments and school districts funded by ad valorem taxes lose revenue from this exemption, potentially affecting public services or forcing tax increases elsewhere
  • Selective favoritism: The exemption benefits one specific industry (retail animal feed) while other retailers and businesses continue paying inventory taxes, raising fairness questions
  • Definition disputes: Ambiguity over what qualifies as "animal feed" could create enforcement challenges and disputes between tax assessors and retailers

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

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