Bill > HJR171

This joint resolution proposes a constitutional amendment to exempt tangible personal property from ad valorem taxation (property tax) in Texas, effective January 1, 2026. Under the proposed amendment, all tangible personal property will be tax-exempt, with a temporary exception for existing debt obligations. Specifically, if an ad valorem tax on tangible personal property was previously pledged to pay a debt before January 1, 2026, tax authorities may continue to collect taxes on that property at the same rate until the debt is discharged, to avoid impairing existing contract obligations. The resolution amends several sections of the Texas Constitution, repeals multiple existing tax-related provisions, and includes a temporary provision setting the implementation date. The proposed amendment will be submitted to voters in a November 4, 2025 election, with the ballot language asking voters to approve "exempting all tangible personal property in this state from ad valorem taxation." If approved, the amendment will provide significant tax relief for businesses and individuals by eliminating taxes on movable personal property such as equipment, machinery, and other non-real estate assets.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HJR171