According to the Legislative Budget Board (LBB), HJR 99 is anticipated to have minimal fiscal implications for the state, aside from the cost of publishing the resolution, which is estimated at $191,689. This cost pertains to the required publication of the proposed constitutional amendment for voter consideration.​

HJR 99 proposes a constitutional amendment permitting the legislature to exempt tangible personal property, specifically animal feed held for retail sale, from ad valorem taxation. It's important to note that the resolution itself does not mandate this exemption but authorizes the legislature to enact it through subsequent legislation. Therefore, any potential fiscal impact resulting from the exemption would depend on the passage and specifics of implementing legislation, such as HB 1399, which would detail the parameters of the tax exemption. Consequently, the fiscal implications of the exemption are not addressed in HJR 99 but would be evaluated in the context of the implementing legislation.​

Regarding local governments, the fiscal note indicates no immediate fiscal implications are anticipated from HJR 99 alone. However, should the legislature enact the authorized exemption, local taxing units could experience a reduction in property tax revenues due to the exclusion of certain inventory (animal feed held for retail sale) from the tax base. The extent of this impact would vary across jurisdictions, depending on the volume of such inventory and the local tax rates.​

In summary, while HJR 99 itself presents a modest cost to the state for publication, the broader fiscal effects hinge on future legislative actions to implement the proposed tax exemption.

Texas Policy Research recommends that lawmakers vote YES on HJR 99 for its targeted effort to reduce a tax burden that currently disrupts the consistency of Texas's property tax policy. By authorizing the Legislature to exempt animal feed held for retail sale from ad valorem taxation, the resolution aims to correct an uneven treatment within the agricultural supply chain. Animal feed is generally not taxed through production and distribution, yet becomes subject to tax once it enters a retail inventory. This proposal enables the Legislature to restore equity for retailers in the agricultural sector without mandating action.

At the same time, this support is given with a note of caution. While tax relief is a goal we consistently support, we remain hesitant about using exemptions as a tool for achieving it. Exemptions—especially those not paired with reductions in government spending—tend to narrow the tax base. This often leads to a shifting of the tax burden onto those who do not qualify for the exemption, such as homeowners or small business owners in unrelated sectors. Over time, such policies can contribute to a patchwork tax system where fairness and transparency are undermined.

Nevertheless, HJR 99 is permissive rather than prescriptive. It simply grants the Legislature authority to create the exemption, without requiring it, which allows future implementation to be shaped with fiscal responsibility in mind. As such, this measure deserves support for its potential to promote fairness, strengthen free enterprise, and reduce government reach—while remaining mindful of the broader structural implications of selective tax relief.

• Individual Liberty: The bill promotes individual liberty by reducing the scope of government taxation on property held for commercial use. Specifically, it gives the Legislature the authority to exempt animal feed held for retail sale from property taxes. This empowers agricultural business owners—especially small and independent feed retailers—to retain more control over their property and income, reducing government intrusion into their operations.
• Personal Responsibility: This bill does not directly affect incentives related to personal responsibility. It neither encourages nor discourages responsible decision-making or self-sufficiency. However, one could argue indirectly that by easing tax burdens on agricultural retailers, it may support those taking the personal initiative to run a business in a highly competitive and essential sector.
• Free Enterprise: The resolution advances free enterprise by reducing a tax burden that may otherwise distort competition. Current law allows animal feed to be tax-exempt through most of its supply chain, yet imposes a tax when it enters the retail phase. By potentially removing this burden, HJR 99 promotes a more level playing field for feed sellers and fosters a more competitive, market-oriented agricultural economy.
• Private Property Rights: By granting the option to exempt certain tangible personal property from taxation, the resolution enhances the principle that ownership should not automatically subject individuals to perpetual state claims. Allowing business owners to hold inventory—such as feed for sale—without incurring property tax strengthens the notion that private property should be secure from arbitrary or excessive taxation.
• Limited Government: On its face, the bill supports limited government by granting the Legislature the discretion to reduce or eliminate a specific tax burden. However, the principle of limited government also calls for broad, consistent tax policy and fiscal discipline. Exemptions, while reducing taxes for some, can complicate the tax code and shift the burden to others. If not paired with reductions in spending or broader tax reform, such exemptions risk weakening fiscal accountability.

• HB 1399 (Enabled by)
• SJR 46 (Same As)