Overall Vote Recommendation

Yes

Principle Criteria

Free Enterprise

Property Rights

Personal Responsibility

Limited Government

Individual Liberty

Digest

HB 135 proposes an amendment to Section 151.316(a) of the Texas Tax Code to exempt "game animals and exotic animals" from state sales and use taxes. This exemption is added to an already extensive list of tax-exempt agricultural and food-related items, including feed, seed, fertilizers, and farm machinery. The bill aligns the treatment of game and exotic animals with other livestock and agricultural animals, recognizing them as integral components of Texas's agricultural economy.

The proposed changes acknowledge the growing role of game and exotic animal ranching in the state, which includes operations for breeding, hunting, and eco-tourism. Many of these animals, although not traditionally considered part of the food production chain, contribute significantly to rural economies and land stewardship. By removing the tax burden associated with the sale and use of these animals, the bill aims to support landowners and ranchers engaged in these alternative agricultural markets.

This exemption is also framed within the broader context of agricultural policy that encourages private land use for economic and conservation purposes. The inclusion of this provision reflects legislative responsiveness to an evolving agricultural sector and a desire to harmonize tax policy with emerging business models in wildlife and game management. The measure may also alleviate administrative burdens related to tax compliance for these niche producers, offering a clearer and more uniform tax code for those operating within Texas's rural and agricultural landscape.

The originally filed version of HB 135 and the Committee Substitute both aim to amend Section 151.316(a) of the Texas Tax Code to exempt sales of game animals and exotic animals from state sales and use taxes. However, there are subtle differences in the structure and detail of the bills that reflect legislative refinement.

In the original version, the bill straightforwardly adds subsections (15) and (16) to Section 151.316(a) to exempt "game animals, as defined by Section 63.001, Parks and Wildlife Code" and "exotic animals, as defined by Section 23.51, Tax Code." It includes standard language on preserving pre-existing tax liabilities and provides for an immediate effective date contingent on a two-thirds vote in both chambers.

In the Committee Substitute, the legislative language and formatting appear to be cleaned up for clarity and consistency with Texas Legislative Council drafting norms. While the exemption content remains substantively the same—adding game and exotic animals to the list of tax-exempt items—the bill more explicitly integrates into the overall statutory context, using a more polished structure and ensuring consistency with the way exemptions are drafted elsewhere in the code.

Author

Angie Chen Button

Candy Noble

Chris Turner

Giovanni Capriglione

Morgan Meyer

Co-Author

Trent Ashby

Greg Bonnen

Ryan Guillen

Cody Harris

Ray Lopez

William Metcalf

Sponsor

Donna Campbell

Co-Sponsor

Peter Flores

Contact the Author

Rep. Angie Chen Button

Capitol Phone:

(512) 463-0486

Capitol Office:

CAP GW.7

E-Mail:

[email protected]

Visit Official Website

Fiscal Notes

According to the Legislative Budget Board (LBB), HB 135 would effectively codify current industry standards and existing enforcement practices by the Texas Comptroller. In practice, sales of game animals are already treated as exempt when they are considered food animals or part of agricultural operations.

As such, the bill is not expected to cause a significant reduction in state revenue. There is no substantial shift anticipated in tax collections since the transactions it exempts are largely already treated as nontaxable. The LBB concludes that the bill does not introduce a new exemption so much as it clarifies and formalizes an existing practice, which helps explain the negligible fiscal impact.

Additionally, the bill is projected to have no significant financial impact on local governments. Local jurisdictions that rely on sales tax revenue are unlikely to see noticeable changes as a result of this legislation. This fiscal neutrality supports the bill’s viability and eases concerns regarding its budgetary effects at both state and local levels.

Vote Recommendation Notes

HB 135 provides a statutory exemption from Texas sales and use taxes for game animals and exotic animals. These animals, often involved in agricultural operations or managed on private lands for breeding, hunting, or eco-tourism, have historically been treated as tax-exempt under Comptroller enforcement practices. By explicitly incorporating this exemption into Section 151.316(a) of the Tax Code, the bill ensures consistency, eliminates ambiguity, and eases compliance burdens for landowners and agricultural businesses.

From a liberty perspective, the bill strengthens individual liberty, private property rights, and free enterprise by reducing government reach and regulatory uncertainty. It facilitates the responsible and productive use of private land, aligns with conservative fiscal and property values, and supports niche agricultural markets that contribute to the rural Texas economy. Furthermore, it adheres to the principle of limited government by codifying what has been industry standard rather than expanding the tax base or regulatory authority.

The Legislative Budget Board’s fiscal note indicates that this measure would not significantly impact state or local revenue, as it formalizes an existing practice rather than introducing a novel exemption. Additionally, the bill analysis confirms that it introduces no new criminal penalties or rulemaking authorities, reinforcing its narrow, administrative purpose.

However, it is important to acknowledge a consistent fiscal caveat: tax exemptions—regardless of intent or scale—do have broader implications. In the absence of corresponding spending cuts, every exemption narrows the tax base and shifts the burden onto those who do not qualify for such exemptions. While HB 135 may be justified on the grounds of fairness and consistency, the cumulative effect of tax exemptions can lead to structural imbalances if unchecked. Therefore, support for this bill should be paired with a commitment to responsible fiscal stewardship and spending discipline to ensure equity in the tax system.

On balance, HB 135 is a principled clarification of the law, and as such, Texas Policy Research recommends that lawmakers vote YES while also allowing the bill to serve as a reminder of the need for continued scrutiny of the state’s tax code and expenditure levels.

Related Legislation

SB 2410 (Similar To)

View Bill Text and Status