Proposing a constitutional amendment prohibiting the imposition of a tax on the realized or unrealized capital gains of an individual, family, estate, or trust.
Summary
HJR 6 proposes a constitutional amendment to bar the Texas Legislature from imposing a tax on realized or unrealized capital gains of an individual, family, estate, or trust. The resolution specifically includes taxes on the sale or transfer of a capital asset when the tax would be payable by the seller or transferor. It is framed as a broad prohibition on capital gains taxation at the state level, whether the gain has been realized through a sale or remains unrealized.
The measure also makes clear that the prohibition would not affect existing taxes that are not capital gains taxes. It expressly preserves the state’s authority to impose ad valorem property taxes, sales taxes on retail goods and services, and use taxes on goods or services purchased at retail and consumed in Texas. If approved by voters, the amendment would be added to Article VIII of the Texas Constitution and submitted on the November 4, 2025 ballot.
Impact
If adopted, HJR 6 would amend the Texas Constitution to permanently prohibit a state capital gains tax on individuals, families, estates, and trusts, limiting future legislative authority in this area. It would not change the state’s ability to levy property taxes, sales taxes, or use taxes, but it would constitutionally block any tax structure targeting realized or unrealized gains from the sale or transfer of capital assets. The proposal would affect taxpayers with investment income, inherited assets, and other capital holdings, as well as the Legislature’s future tax policy options.
Sentiment
The available context suggests the bill was treated as a tax-limitation measure and advanced through the Ways & Means process without recorded committee debate or votes in the provided materials. The absence of transcripts or recorded opposition in the supplied context makes it difficult to identify a detailed split in sentiment, but the resolution’s framing indicates support for protecting taxpayers from a future capital gains tax. Its placement on the House calendar and later being laid on the table subject to call suggests it remained under consideration rather than moving quickly to final passage.
Contention
The main point of contention is likely whether Texas should constitutionally foreclose any future capital gains tax, including on unrealized gains, which is a broader restriction than simply banning a currently existing tax. Supporters would view the measure as a safeguard for investment, family wealth, estates, and trust assets, while critics may argue it unnecessarily constrains future fiscal policy and could limit revenue options if state tax needs change. Another possible issue is the breadth of the language, which covers both realized and unrealized gains and extends to estates and trusts, making the amendment more expansive than a narrow anti-tax provision.
Identical
Proposing a constitutional amendment prohibiting the imposition of a tax on the realized or unrealized capital gains of an individual, family, estate, or trust.
Proposing a constitutional amendment prohibiting the imposition of a tax on the realized or unrealized capital gains of an individual, family, estate, or trust.
Proposing a constitutional amendment prohibiting the legislature from imposing certain taxes on the transfer of an estate, inheritance, legacy, succession, or gift.