Proposing a constitutional amendment prohibiting the enactment of a law imposing an occupation tax on certain entities that enter into transactions conveying securities or imposing a tax on certain securities transactions.
SJR 50 proposes a constitutional amendment that would bar the Texas Legislature from enacting an occupation tax on certain securities market operators or a tax on securities transactions conducted by those operators. The amendment defines covered entities broadly to include registered exchanges, brokers, dealers, clearing agencies, transfer agents, alternative trading systems, commodity trading entities, and related affiliates or facilities that are regulated by the SEC, CFTC, or FINRA. It also defines securities transactions to include not only purchases and sales of securities, but also services that facilitate, match, process, report, clear, or settle those transactions.
The resolution includes several express carve-outs. It would not prevent general business taxes measured by business activity, taxes on mineral production, insurance premium taxes, sales and use taxes on tangible personal property or services, or fees based on the cost of processing or creating documents. It also preserves the legislature’s ability to change the rate of a tax already in existence on January 1, 2026. If approved by voters, the amendment would be submitted at the November 4, 2025 election and would become part of the Texas Constitution, limiting future state tax policy in this area.
If adopted, SJR 50 would amend Article VIII of the Texas Constitution to restrict the Legislature’s taxing authority over securities market operators and securities transactions. That would prevent the creation of new occupation taxes or transaction taxes targeted at the covered financial entities and activities, while leaving other generally applicable taxes and specified fees intact. The measure would affect state tax law and could constrain future revenue options involving financial markets, brokerage services, trading platforms, and related clearing and settlement functions.
The available legislative history shows strong support in committee, with the Senate Business & Commerce Committee reporting the resolution favorably by a 10-0 vote. No opposing votes or recorded committee debate are provided in the materials, suggesting the measure moved forward with little visible resistance at that stage. Overall, the bill appears to have been received positively by the committee.
The main policy issue is whether Texas should constitutionally prohibit targeted taxes on securities trading and related market operators. Supporters would likely view the amendment as protecting financial-market competitiveness and preventing new industry-specific taxes, while potential critics may be concerned that it limits future legislative flexibility and narrows possible tax bases. The bill’s broad definitions of covered entities and transactions, along with the constitutional nature of the change, are the most likely points of contention, though no specific objections are recorded in the provided materials.