A new effort happening in the Texas capitol could bring grocery prices down. 온라인카지노사이트 5’s Alanna Quillen tells us more.
A new push at the Texas Capitol could bring price relief to both consumers and retailers by eliminating a tax on certain items that grocers say is quietly driving up the cost of essential goods.
Two bipartisan bills — and — are gaining momentum among lawmakers and industry groups. The Senate bill is authored by Sen. Royce West, D-Dallas, and Sen. Paul Bettencourt, R-Houston, while the House bill is authored by Rep. Angie Chen Button, R-Garland.
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The proposed legislation would exempt certain fresh foods and medications from the state's ad valorem inventory tax, a levy that businesses pay each year based on the value of unsold products on their shelves, in back rooms, and in warehouses.
The Texans for Affordable Food and Medicine coalition, made up of retailers and trade associations, announced its full support for the measures last month. The group says the tax exemption would reduce prices, help small grocers stay competitive, and improve access to fresh groceries and medications, particularly in rural and underserved communities.
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“Texas is one of the very few states that has an inventory tax,” said Gary Huddleston, a grocery industry consultant for the . “At the end of the year, the state of Texas says... you have to count all your product... and pay an inventory tax on it. That tax varies, but it could be from 0.2% to 0.5%, which in our industry is significant.”
Huddleston says that’s especially hard on businesses that sell perishable goods, like grocers and pharmacies. Unlike most states, Texas applies its inventory tax even to essential goods that are already exempt from sales tax, such as milk, eggs, fruits, vegetables, meat, and some medicines.
“We’re not asking for it to totally go away, but we’re asking for some exemptions to help businesses,” he said.
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Supporters argue that repealing the tax on these items would lower overhead costs for retailers, which could in turn lower prices for shoppers.
“The business is super competitive,” Huddleston added. “So it’s something that if a grocer can reduce cost, they’re going to reduce retail to the customer.”
According to the U.S. Department of Agriculture, Texas had the second-highest rate of food insecurity in the nation from 2021 to 2023 at nearly 17%, compared to the national average of 13.5%.
Huddleston noted that previous attempts to reform the inventory tax fell short in past sessions. But with Texas operating under a significant budget surplus this year, he believes the climate is right for change.
“When [the tax] came in, it may have been needed,” Huddleston said. “But today, the state is pretty well-funded and even has an excess in the budget. Now is the time to reduce the inventory tax.”
He also sees broader economic benefits.
“Texas is a low-tax state... If indeed the inventory tax is changed or reduced, it’s just another way to attract more business into the state of Texas,” Huddleston said.
If the bills pass, the tax exemptions could go into effect as early as next year. Retailers and lawmakers alike say the timing is crucial, as grocers prepare to navigate new federal tariffs that are expected to increase the cost of tens of thousands of supermarket items.
For now, the bills must move through committee hearings and floor votes in both chambers of the Legislature. But advocates are hopeful.
“2025 has turned out to be very challenging for our grocers,” Huddleston said. “And this is just another way of reducing some cost in the grocery operation.”
