Texas House bill by Rep. Hunter allows tax deductions for Texas farm-raised oysters

Passed bill authored by State Rep. Todd Hunter seeks to provide tax deductions to food service establishments purchasing Texas farm-raised oysters, aiming to support local aquaculture and promote state agricultural products, according to the Texas Legislature website.

In the House, 51 Democrats and 63 Republicans voted in favor of the bill, while 21 Republicans opposed it.

Meanwhile, in the Senate, 10 Democrats and 16 Republicans voted in favor, while one Democrat and four Republicans voted against it.

Todd Hunter introduced the bill in the Texas House on Thursday, Feb. 27, during the 89th regular legislative session.

Hunter graduated from the University of Kansas in 1975 with a BA and again in 1978 from Southern Methodist University with a JD.

Hunter, a Republican, was elected to the Texas State House in 2009 to represent the state’s 32nd House district, replacing previous state representative Juan M. Garcia III.

According to the Texas Legislature, the bill’s official text was summarized as follows: ‘Relating to a deduction from the amount of taxable sales used to calculate the amount of sales and use taxes that the owners of restaurants that purchase Texas farm-raised oysters are required to remit to the comptroller of public accounts’.

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill allows owners of food service establishments in Texas who purchase Texas farm-raised oysters for preparation and service to receive a tax deduction on their sales and use tax liability. The deduction is calculated as $5 for every 100 Texas farm-raised oysters purchased during a given quarter or month. To qualify for the deduction, the establishment must be officially permitted under state regulations. The Texas comptroller may request necessary documentation to verify the accuracy of the deducted amount and is authorized to implement rules to facilitate this process. This legislation will take effect on Oct. 1, 2025, and will not affect tax liabilities accrued before that date.

The bill was co-authored by Rep. Terri Leo-Wilson (Republican – District 23).

The bill received its final legislative approval on Wednesday, May 28, and was signed into law by Gov. Greg Abbott on Friday, June 20.

Bills in Texas go through a multi-step legislative process, including committee review, debates, and votes in both chambers before reaching a final decision. Each session, there are typically thousands of bills introduced, but only a portion successfully navigate the process to become law.

You can read more about the bills and other measures here.