HJR99

Regular Session

Proposing a constitutional amendment authorizing the legislature to exempt from ad valorem taxation tangible personal property consisting of animal feed held by the owner of the property for sale at retail.

LowStandard timeline

Low Cost

Effective:2025-05-13

Enforcing Agencies

Texas Secretary of State (Election administration) • County Appraisal Districts (Future administration of exemption)

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: May 13, 2025 (Date resolution takes effect for ballot placement purposes only).
Voter Approval Date: November 4, 2025 (Constitutional Amendment Election).
Operational Start Date: January 1, 2026 (Assessment date for the first tax year the exemption would apply).
Compliance Deadline: April 15, 2026 (Deadline to file Business Personal Property Rendition claiming the new exemption).
Agency Rulemaking: The Texas Comptroller will issue updated rendition forms and definitions between November 2025 and January 2026, contingent on voter approval.

Immediate Action Plan

Immediate: Direct accounting to create a specific General Ledger code or Inventory Category for "Animal Feed" distinct from other agricultural supplies.
Q4 2025: Monitor the November 4 election results. If the amendment passes, freeze inventory data on December 31, 2025, to ensure an accurate January 1, 2026, valuation.
Q1 2026: Download the updated Business Personal Property Rendition form from your County Appraisal District website immediately upon release to verify the specific reporting lines for the exemption.

Operational Changes Required

Contracts

Triple Net (NNN) Leases: Review lease terms regarding "pro-rata share of taxes." This exemption applies to Tangible Personal Property (Inventory), not Real Property. Ensure landlords do not inadvertently bill you for inventory taxes that have been exempted.
Asset-Based Lending: If your credit facility is secured by inventory value, notify your lender before removing this inventory from tax rolls. While the asset value remains, the tax assessment documentation—often used by lenders for verification—will change.

Hiring/Training

Inventory Management: Train warehouse and accounting staff to strictly differentiate "Animal Feed" from "Supplements," "Medications," and "Accessories" (e.g., feeders, tack). Misclassification will trigger audit penalties.

Reporting & Record-Keeping

Inventory Segregation: You must configure your ERP or POS systems to separate "Animal Feed" into its own asset class immediately. You will need to prove the value of *only* this specific category on January 1, 2026.
Proof of Retail Intent: Retain documentation proving the inventory is "held for sale at retail." If you conduct both wholesale and retail operations, you must physically or digitally delineate inventory designated for retail sale.

Fees & Costs

Tax Savings: This measure reduces Business Personal Property (BPP) tax liability.
Administrative Cost: Minor internal costs associated with re-coding inventory SKUs.

Strategic Ambiguities & Considerations

Definition of "Animal Feed": HJR 99 uses the broad term "animal feed." It is currently unclear if this includes pet food (dogs/cats), wild bird seed, or mineral blocks/supplements. The Comptroller or the Legislature (via HB 1399) will define these boundaries. Expect strict definitions to prevent "category creep."
"Held for Sale at Retail": The distinction between "retail" and "wholesale" can be blurred in agricultural cooperatives. Future rulemaking will likely clarify if bulk sales to end-users (ranchers) constitute "retail" for the purpose of this exemption.

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Legislative Timeline

This bill's path through the Texas Legislature

TopicsAgriculture Animals Property Interests Property Interests--personal Property Resolutions Resolutions--constitutional Amendments Taxation Taxation--property-appraisals & Appraisal Districts Taxation--property-exemptions

Official Analysis

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RESOLUTION ANALYSIS

H.J.R. 99

By: Harris

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Under current law, animal feed is typically exempt from taxation at each location or transaction during its life cycle, from the field where it's harvested to the purchase of the feed by a farmer or rancher, except for when the feed is sitting in a store as inventory. H.J.R. 99 seeks to address this inconsistency by authorizing the legislature to exempt tangible personal property consisting of animal feed from property taxation if the property is held by the owner for sale at retail.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this resolution 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 resolution does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.J.R. 99 proposes an amendment to the Texas Constitution to authorize the legislature by general law to exempt from property taxation tangible personal property consisting of animal feed held by the owner of the property for sale at retail. The legislature by general law may provide additional eligibility requirements for this exemption.

ELECTION DATE

The constitutional amendment proposed by this joint resolution will be submitted to the voters at an election to be held November 4, 2025.

House Authors

Rep. Cody HarrisRepublican · Primary Author

Coauthors (6)

Senate Sponsors

Sen. Robert NicholsRepublican · Primary Sponsor

Cosponsors (1)

Royce West (D)

Bill Text(with markup)

H.J.R. No. 99

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	A JOINT RESOLUTION
	proposing a constitutional amendment authorizing the legislature
	to exempt from ad valorem taxation tangible personal property
	consisting of animal feed held by the owner of the property for sale
	at retail.
	BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Article VIII, Texas Constitution, is amended by
	adding Section 1-s to read as follows:
	Sec. 1-s. (a) The legislature by general law may exempt
	from ad valorem taxation tangible personal property consisting of
	animal feed held by the owner of the property for sale at retail.
	(b) The legislature by general law may provide additional
	eligibility requirements for the exemption authorized by this
	section.
	SECTION 2. This proposed constitutional amendment shall be
	submitted to the voters at an election to be held November 4, 2025.
	The ballot shall be printed to permit voting for or against the
	proposition: "The constitutional amendment authorizing the
	legislature to exempt from ad valorem taxation tangible personal
	property consisting of animal feed held by the owner of the property
	for sale at retail."

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


March 14, 2025

TO:	Honorable Morgan Meyer, Chair, House Committee on Ways & Means

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	HJR99 by Harris (Proposing a constitutional amendment authorizing the legislature to exempt from ad valorem taxation tangible personal property consisting of animal feed held by the owner of the property for sale at retail.), As Introduced

No fiscal implication to the State is anticipated, other than the cost of publication.

The cost to the state for publication of the resolution is $191,689.

The resolution would propose an amendment to Article VIII of the Texas Constitution to allow the Legislature by general law to exempt animal feed, held by the owner for sale at retail, from ad valorem taxation. The Legislature would be permitted to impose additional eligibility requirements.

The proposed constitutional amendment would permit, but not require, the Legislature to exempt animal feed held for retail sale from property tax. Consequently, any cost would be shown in the fiscal note for the associated implementing legislation (HB 1399).

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

304 Comptroller of Public Accounts

LBB Staff:

JMc, KK, SD, BRI

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Frequently Asked Questions

Common questions about HJR99

What does Texas HJR99 do?

HJR 99 is a Joint Resolution placing a constitutional amendment on the November 4, 2025, ballot to exempt animal feed held for retail sale from ad valorem (property) taxation. While not immediate statutory law, passage is a prerequisite for the tax relief proposed in enabling legislation (HB 1399); if approved by voters, retailers must segregate inventory data by January 1, 2026, to claim the exemption. Implementation Timeline Effective Date: May 13, 2025 (Date resolution takes effect for ballot placement purposes only).

Who authored HJR99?

HJR99 was authored by Texas Representative Cody Harris during the Regular Session.

When was HJR99 signed into law?

HJR99 was signed into law by Governor Greg Abbott on May 13, 2025.

Which agencies enforce HJR99?

HJR99 is enforced by Texas Secretary of State (Election administration) and County Appraisal Districts (Future administration of exemption).

How urgent is compliance with HJR99?

The compliance urgency for HJR99 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of HJR99?

The cost impact of HJR99 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does HJR99 address?

HJR99 addresses topics including agriculture, animals, property interests, property interests--personal property and resolutions.

Legislative data provided by LegiScanLast updated: November 25, 2025

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