WeVote
Log In

Bill

Bill

HB 110

Relating to the definitions of certain terms for purposes of the exemption from ad valorem taxation of farm products in the hands of the producer.

89th Legislature, 1st Called Session (2025) Introduced by Trent Ashby and 3 co-sponsors

HB 110 clarifies tax code definitions determining which farm products qualify for Texas property tax exemptions, potentially altering producer eligibility and state revenue.

Filed
#agriculture(i0020) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793)
0
WeVote Research Nonpartisan
Bill Summary · HB 110

Legislative bill overview

HB 110 modifies the legal definitions used to determine which agricultural products qualify for exemption from property taxes (ad valorem taxation) when held by the producer. The bill clarifies or adjusts what counts as "farm products in the hands of the producer" for tax exemption eligibility purposes. This is a technical definitional bill intended to update existing agricultural tax code language.

Why is this important

Agricultural property tax exemptions are significant financial benefits for farmers and ranchers, reducing their tax burden on productive assets and farm goods. Clarifying these definitions affects which producers qualify for exemptions and can impact state tax revenue and the competitiveness of different agricultural operations. Given Texas's substantial agricultural sector, even narrow definitional changes can have meaningful fiscal and economic consequences.

Potential points of contention

  • Scope of exemptions: Changes to definitions may expand or restrict which agricultural products qualify, potentially benefiting certain producers while disadvantaging others (e.g., value-added products vs. raw commodities)
  • Revenue impact: Clarifications could increase exemptions claimed, reducing local property tax revenue to school districts and municipalities that depend on these funds
  • Implementation complexity: New or revised definitions may create administrative burden for county appraisers interpreting and applying the standards consistently across Texas

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

Sign in to ask a question.