By: Guillen H.B. No. 240       A BILL TO BE ENTITLED   AN ACT   relating to the definitions of certain terms for purposes of the   exemption from ad valorem taxation of farm products in the hands of   the producer.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 11.16(c), Tax Code, is amended to read as   follows:          (c)  For purposes of this exemption, the following   definitions apply:                (1)  "Farm products" has the meaning assigned by   Section 9.102, Business & Commerce Code, except that the term   includes [include livestock,] poultry, eggs, and timber, including   standing timber.                (2)  "In the hands of the producer [,]" means:                      (A)  for farm products other than timber,   [livestock, poultry, and eggs, means] under the ownership of the   person who is using or financially providing for the physical   requirements of such farm products [livestock, poultry, and eggs]   on January 1 of the tax year; and                      (B)  [,] for timber, [means] standing timber or   timber that has been harvested and, on January 1 of the tax year, is   located on the real property on which it was produced and is under   the ownership of the person who owned the timber when it was   standing.          SECTION 2.  This Act applies only to a tax year beginning on   or after January 1, 2027.          SECTION 3.  This Act takes effect January 1, 2027, but only   if the constitutional amendment proposed by the 89th Legislature,   1st Called Session, 2025, authorizing the legislature to define   certain terms for purposes of the exemption from ad valorem   taxation of farm products in the hands of the producer is approved   by the voters. If that amendment is not approved by the voters,   this Act has no effect.