Texas House Bill HJR1

Texas 2025 - 89th Regular

• Filed: 2/24/25
• Out of House Committee: 3/19/25
• Voted on by House: 4/2/25
• Out of Senate Committee: 5/7/25
• Voted on by Senate: 5/14/25
• Sent toSOS: 5/20/25

Caption

Proposing a constitutional amendment to authorize the legislature to exempt from ad valorem taxation a portion of the market value of tangible personal property a person owns that is held or used for the production of income.

Summary

HJR 1 proposes a constitutional amendment to let the Legislature exempt $125,000 of the market value of tangible personal property held or used to produce income from ad valorem taxation. In practical terms, this would allow lawmakers to create or expand a property-tax exemption for business or investment-related personal property such as equipment, machinery, and other taxable tangible assets used in income-producing activity. Because it is a joint resolution, the measure does not itself change tax law immediately; instead, it amends the Texas Constitution to give the Legislature authority to enact the exemption by general law. The proposal is placed before voters for approval at the November 4, 2025 election, and if adopted, it would broaden the Legislature’s constitutional power over property-tax exemptions for income-producing tangible personal property.

Impact

If approved by voters, the amendment would modify Article VIII, Section 1(g) of the Texas Constitution to authorize a $125,000 exemption from ad valorem taxation for tangible personal property used to produce income. This would affect state and local property tax administration by reducing the taxable value of qualifying business personal property and potentially lowering tax bills for owners of such property. The change would also give the Legislature discretion to implement the exemption through future general law, affecting counties, school districts, and other taxing units that rely on property-tax revenue.

Sentiment

The bill appears to have broad support overall, with strong passage in both chambers and only limited opposition. The House approved the measure by large margins on final passage and on concurrence with Senate amendments, and the Senate passed it unanimously. The vote pattern suggests the proposal was generally viewed favorably as a property-tax relief measure, though not without some dissent in the House.

Contention

The main point of contention appears to be the scope and fiscal effect of expanding a constitutional property-tax exemption for income-producing tangible personal property. Opponents likely raised concerns about reduced local tax revenue and the fairness of exempting business property from taxation, while supporters emphasized tax relief and simplification. The earlier House votes on amendments show some procedural and substantive debate, but the final votes indicate that any disagreements were not enough to prevent passage.