Overall Vote Recommendation

Yes

Principle Criteria

Free Enterprise

Property Rights

Personal Responsibility

Limited Government

Individual Liberty

Digest

HJR 1 proposes a constitutional amendment to authorize the Texas Legislature to exempt from ad valorem taxation up to $250,000 of the market value of tangible personal property that a person owns and uses for income-generating purposes. The amendment modifies Section 1(g), Article VIII of the Texas Constitution by eliminating the current threshold requirement that only property below a minimum taxable value (previously determined by law) is exempt. If approved by voters in the November 4, 2025 election, the exemption would take effect for the 2025 tax year. The resolution includes a temporary provision stating that this exemption framework will remain in place until January 1, 2027.

Author

Morgan Meyer

Greg Bonnen

Angie Chen Button

Trey Martinez Fischer

Diego Bernal

Co-Author

Daniel Alders

Trent Ashby

Jeffrey Barry

Cecil Bell, Jr.

Keith Bell

Bradley Buckley

Ben Bumgarner

Giovanni Capriglione

David Cook

Philip Cortez

Tom Craddick

Charles Cunningham

Pat Curry

Aicha Davis

Jay Dean

Mano DeAyala

Mark Dorazio

Paul Dyson

Caroline Fairly

James Frank

Gary Gates

Stan Gerdes

Charlie Geren

Ryan Guillen

Sam Harless

Cody Harris

Caroline Harris Davila

Cole Hefner

Hillary Hickland

Lacey Hull

Carrie Isaac

Helen Kerwin

Stan Kitzman

Stan Lambert

Brooks Landgraf

Jeff Leach

Terri Leo-Wilson

Janie Lopez

Ray Lopez

John Lujan

Shelley Luther

Armando Martinez

John McQueeney

William Metcalf

Brent Money

Eddie Morales

Matt Morgan

Sergio Munoz, Jr.

Candy Noble

Tom Oliverson

Angelia Orr

Jared Patterson

Dennis Paul

Katrina Pierson

Mihaela Plesa

Richard Raymond

Keresa Richardson

Michael Schofield

Matthew Shaheen

Joanne Shofner

Shelby Slawson

David Spiller

Valoree Swanson

Carl Tepper

Tony Tinderholt

Steve Toth

Ellen Troxclair

Gary Vandeaver

Cody Vasut

Trey Wharton

Sponsor

Paul Bettencourt

Co-Sponsor

Carol Alvarado

Brian Birdwell

Cesar Blanco

Brandon Creighton

Roland Gutierrez

Adam Hinojosa

Bryan Hughes

Phil King

Lois Kolkhorst

Mayes Middleton

Tan Parker

Angela Paxton

Kevin Sparks

Royce West

Contact the Author

Rep. Morgan Meyer

Capitol Phone:

(512) 463-0367

Capitol Office:

CAP GN.8

E-Mail:

[email protected]

Visit Official Website

Fiscal Notes

According to the Legislative Budget Board (LBB) fiscal note, HJR 1 has no direct fiscal impact on the state or local governments, aside from the cost of publishing the constitutional amendment, which is estimated at $191,689. The resolution itself only grants the legislature the authority to enact the tax exemption; the actual fiscal effects would depend on enabling legislation, specifically HB 9.

If the legislature passes enabling legislation to exempt up to $250,000 of the market value of tangible personal property used for income generation from ad valorem taxation, it could reduce property tax revenues collected by local taxing entities. However, the fiscal note states that no immediate financial impact on local governments is anticipated. This suggests that either:

The loss in revenue is expected to be offset by other revenue sources or spending adjustments, or
The state may consider measures to compensate local governments for lost property tax revenues.

The broader economic impact would depend on how businesses respond to the tax exemption. Small businesses and individual property owners would likely benefit from reduced tax burdens, potentially leading to increased investment and economic activity. However, if local governments rely heavily on ad valorem taxes, they might need to adjust tax rates or cut services in response to revenue changes.

Ultimately, while the resolution itself does not impose direct fiscal costs, the full financial consequences will depend on how the exemption is structured and implemented in subsequent legislation.

Vote Recommendation Notes

HJR 1 is a pro-business, pro-property rights constitutional amendment that would allow the Texas Legislature to exempt up to $250,000 of the market value of tangible personal property used for income production from ad valorem taxation. This measure is a clear step toward tax relief for business owners, entrepreneurs, and self-employed individuals, aligning with principles of economic liberty and limited government. By reducing the tax burden on income-generating property, the amendment encourages investment, job creation, and economic expansion in Texas.

From a fiscal responsibility standpoint, the resolution itself does not impose direct costs on the state, aside from the $191,689 publication expense. However, the real fiscal impact will depend on subsequent enabling legislation (HB 9), which would determine how the tax exemption is implemented. While some concern exists that local governments may experience reduced property tax revenue, the potential economic benefits—such as increased business investment and economic activity—could counterbalance or even outweigh any losses.

This amendment aligns with the principles of limited government and allows businesses to retain more of their earnings. The Republican Party of Texas strongly supports property tax reduction and policies that promote free enterprise, making this amendment consistent with their platform. The Libertarian Party of Texas also advocates for reducing the overall tax burden on individuals and businesses. While Democrats may express concerns over lost revenue for public services, this measure could benefit small businesses and job creation, which are also key Democratic priorities.

Given its strong support for individual liberty, private property rights, free enterprise, and limited government, Texas Policy Research recommends that lawmakers vote YES on HJR 1. It provides meaningful tax relief while promoting economic growth and reducing bureaucratic complexity in property taxation.

Related Legislation

HB 9 (Enabled by)

View Bill Text and Status