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.

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.