Regular Session
Texas Comptroller of Public Accounts
Key implementation requirements and action items for compliance with this legislation
Review Master Service Agreements (MSAs) and purchase orders with breeders or stock suppliers. If current contracts state prices are "inclusive of all applicable taxes," renegotiate immediately. You must ensure the 6.25% (plus local) tax savings are realized by the purchaser and not retained as margin by the seller.
Accounting and Point-of-Sale (POS) staff must be trained to distinguish between statutory "Game/Exotic" animals (exempt) and non-qualifying animals (pets). Update invoicing software SKUs for game and exotic animals from "Taxable" to "Exempt" immediately to prevent automated tax accrual.
While the sale is exempt, the paper trail is mandatory for audit defense.
This legislation reduces transaction costs. There are no new fees. However, Section 2 of the bill explicitly states that tax liability accrued *prior* to May 13, 2025, remains due. Do not attempt to claim refunds or adjust books for transactions finalized before this date.
The law relies on definitions found in the Parks and Wildlife Code (Sec. 63.001) and Tax Code (Sec. 23.51).
Our government affairs experts can walk you through this bill's specific impact on your operations.
Schedule ConsultationInformation presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
This bill's path through the Texas Legislature
BILL ANALYSIS |
| C.S.H.B. 135 |
| By: Button |
| Ways & Means |
| Committee Report (Substituted) |
| BACKGROUND AND PURPOSE Under current state law, horses, mules, work animals, and animal life, the products of which ordinarily constitute food for human consumption, are exempt from the sales and use tax. This exemption can benefit buyers and sellers of those animals by reducing sales tax costs and compliance obligations. However, exotic animals and game animals are not explicitly exempt from the sales and use tax under current state law, which can confuse buyers and sellers of such animals regarding their sales tax obligations. C.S.H.B. 135 seeks to address this issue by clearly exempting exotic animals and game animals from the sales and use tax, thereby codifying the common industry and comptroller of public accounts enforcement practice of treating sales of game animals, whether indigenous or exotic, as sales of exempt food animals.
|
| CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
|
| RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
|
| ANALYSIS C.S.H.B. 135 amends the Tax Code to exempt exotic animals, defined by reference to statutory provisions relating to the appraisal of agricultural land, and game animals, described by reference to Parks and Wildlife Code provisions relating to hunting and fishing, from the sales and use tax. C.S.H.B. 135 expressly does not affect tax liability accruing before the bill's effective date. That liability continues in effect as if the bill had not been enacted, and the former law is continued in effect for the collection of taxes due and for civil and criminal enforcement of the liability for those taxes.
|
| EFFECTIVE DATE On passage, or, if the bill does not receive the necessary vote, September 1, 2025.
|
| COMPARISON OF INTRODUCED AND SUBSTITUTE C.S.H.B. 135 differs from the introduced in minor or nonsubstantive ways by conforming to certain bill drafting conventions. |
| H.B. No. 135 | ||
|
|
||
| relating to exemptions from sales and use taxes for game animals and | ||
| exotic animals. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 151.316(a), Tax Code, is amended to read | ||
| as follows: | ||
| (a) Subject to Section 151.1551, the following items are | ||
| exempted from the taxes imposed by this chapter: | ||
| (1) horses, mules, and work animals; | ||
| (2) animal life the products of which ordinarily | ||
| constitute food for human consumption; | ||
| (3) feed for farm and ranch animals; | ||
| (4) feed for animals that are held for sale in the | ||
| regular course of business; | ||
| (5) seeds and annual plants the products of which: | ||
| (A) ordinarily constitute food for human | ||
| consumption; | ||
| (B) are to be sold in the regular course of | ||
| business; or | ||
| (C) are used to produce feed for animals exempted | ||
| by this section; | ||
| (6) fertilizers, fungicides, insecticides, | ||
| herbicides, defoliants, and desiccants exclusively used or | ||
| employed on a farm or ranch in the production of: | ||
| (A) food for human consumption; | ||
| (B) feed for animal life; or | ||
| (C) other agricultural products to be sold in the | ||
| regular course of business; | ||
| (7) machinery and equipment exclusively used or | ||
| employed on a farm or ranch in the building or maintaining of roads | ||
| or water facilities or in the production of: | ||
| (A) food for human consumption; | ||
| (B) grass; | ||
| (C) feed for animal life; or | ||
| (D) other agricultural products to be sold in the | ||
| regular course of business; | ||
| (8) machinery and equipment exclusively used in, and | ||
| pollution control equipment required as a result of, the | ||
| processing, packing, or marketing of agricultural products by an | ||
| original producer at a location operated by the original producer | ||
| for processing, packing, or marketing the producer's own products | ||
| if: | ||
| (A) 50 percent or more of the products processed, | ||
| packed, or marketed at or from the location are produced by the | ||
| original producer and not purchased or acquired from others; and | ||
| (B) the producer does not process, pack, or | ||
| market for consideration any agricultural products that belong to | ||
| other persons in an amount greater than five percent of the total | ||
| agricultural products processed, packed, or marketed by the | ||
| producer; | ||
| (9) ice exclusively used by commercial fishing boats | ||
| in the storing of aquatic species including but not limited to | ||
| shrimp, other crustaceans, finfish, mollusks, and other similar | ||
| creatures; | ||
| (10) tangible personal property, including a tire, | ||
| sold or used to be installed as a component part of a motor vehicle, | ||
| machinery, or other equipment exclusively used or employed on a | ||
| farm or ranch in the building or maintaining of roads or water | ||
| facilities or in the production of: | ||
| (A) food for human consumption; | ||
| (B) grass; | ||
| (C) feed for animal life; or | ||
| (D) other agricultural products to be sold in the | ||
| regular course of business; | ||
| (11) machinery and equipment exclusively used in an | ||
| agricultural aircraft operation, as defined by 14 C.F.R. Section | ||
| 137.3; | ||
| (12) tangible personal property incorporated into a | ||
| structure that is used for the disposal of poultry carcasses in | ||
| accordance with Section 26.303, Water Code; | ||
| (13) tangible personal property incorporated into or | ||
| attached to a structure that is located on a commercial dairy farm, | ||
| is used or employed exclusively for the production of milk, and is: | ||
| (A) a free-stall dairy barn; or | ||
| (B) a dairy structure used solely for maternity | ||
| purposes; [ |
||
| (14) telecommunications services exclusively provided | ||
| or used for the navigation of machinery and equipment exclusively | ||
| used or employed on a farm or ranch in the building or maintaining | ||
| of roads or water facilities or in the production of: | ||
| (A) food for human consumption; | ||
| (B) grass; | ||
| (C) feed for animal life; or | ||
| (D) other agricultural products to be sold in the | ||
| regular course of business; | ||
| (15) exotic animals, as defined by Section 23.51; and | ||
| (16) game animals, as described by Section 63.001, | ||
| Parks and Wildlife Code. | ||
| SECTION 2. The change in law made by this Act does not | ||
| affect tax liability accruing before the effective date of this | ||
| Act. That liability continues in effect as if this Act had not been | ||
| enacted, and the former law is continued in effect for the | ||
| collection of taxes due and for civil and criminal enforcement of | ||
| the liability for those taxes. | ||
| SECTION 3. This Act takes effect immediately if it receives | ||
| a vote of two-thirds of all the members elected to each house, as | ||
| provided by Section 39, Article III, Texas Constitution. If this | ||
| Act does not receive the vote necessary for immediate effect, this | ||
| Act takes effect September 1, 2025. | ||
| TO: | Honorable Morgan Meyer, Chair, House Committee on Ways & Means |
| FROM: | Jerry McGinty, Director, Legislative Budget Board |
| IN RE: | HB135 by Button (Relating to an exemption from sales and use taxes for game animals and exotic animals.), As Introduced |
| Source Agencies: | 304 Comptroller of Public Accounts |
| LBB Staff: | JMc, KK, SD |
Explore more bills from this author and on related topics
Common questions about HB135
Effective May 13, 2025, Texas HB135 explicitly exempts the sale of game and exotic animals from state sales and use tax, codifying what was previously an enforcement practice into statutory law. This change immediately impacts game ranches, exotic breeders, and outfitters, who must cease collecting sales tax on qualifying transactions to remain compliant with Tax Code Section 151. 316(a).
HB135 was authored by Texas Representative Angie Button during the Regular Session.
HB135 was signed into law by Governor Greg Abbott on May 13, 2025.
HB135 is enforced by Texas Comptroller of Public Accounts.
The compliance urgency for HB135 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
The cost impact of HB135 is estimated as "low". This may vary based on industry and implementation requirements.
HB135 addresses topics including animals, taxation and taxation--sales.
Need help with Government Relations, Lobbying, or compliance? JD Key Consulting has the expertise you're looking for.
