Texas Proposition 5: Tax exemption for animal feed inventory

TEXAS (KTAL/KMSS) — On November 4, 2025, 17 constitutional amendments are on the ballot for Texas voters. Our ongoing series will explain what the amendments say, what they mean, why they are on the ballot, and the arguments for and against their passage.

This is not meant to be a comprehensive breakdown of these amendments; rather, it is an overview of the basics.

Overview

“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.”

What it means

Proposition 5 would authorize the Texas Legislature to exempt animal feed held by an owner as inventory to be sold.

Animal feed is typically tax-exempt when it is harvested and purchased. It is only taxed while it is in inventory as part of the owner’s property taxes. This proposal would allow the legislature to forgo that tax.

Why is it on the ballot?

State Representative Cody Harris (R-Palestine), who proposed this amendment, noted that animal feed is tax-exempt when it is harvested and when it is sold. It should be noted that Rep. Harris is a ranch broker.

Supporters say

Animal feed is only taxed while in inventory, and this typically occurs during a time of the year when warehouses are at full capacity, resulting in high taxes that are passed on to consumers through higher prices.

Exempting animal feed from being taxed would make feed more affordable for farmers and ranchers.

Opponents say

Exempting animal feed would give sellers an unfair tax benefit since almost all other forms of inventory are subject to property tax.

Sellers and buyers will not necessarily pass their savings on to the consumer.

The exemption provided in this amendment would lower local property tax revenue, potentially creating a shortfall that the state may need to compensate for.