According to the Legislative Budget Board (LBB), HJR 31 is not expected to have a direct fiscal impact on the State of Texas or local government entities, apart from the standard cost associated with publishing the resolution for voter consideration. The Legislative Budget Board estimates the publication cost at approximately $191,689, which is a typical expense for constitutional amendments placed on the statewide ballot.

Importantly, the resolution itself does not implement any new tax exemptions or modify existing fiscal policy—it merely authorizes the Legislature to define key terms related to the ad valorem tax exemption for farm products. Therefore, any future fiscal implications would hinge on enabling legislation that might follow (specifically, House Bill 255, referenced in the fiscal note). The extent of any property tax revenue changes, particularly for local governments or school districts, would depend on how broadly the Legislature defines “farm products” and “in the hands of the producer” in future statutory language.

In conclusion, HJR 31 has minimal immediate fiscal consequences, with no anticipated impact on state or local tax revenues. Its true fiscal effect would be determined later through the implementation of associated legislation.

HJR 31 seeks to address ambiguity in the Texas Constitution regarding ad valorem tax exemptions for agricultural products. The current constitutional language exempts farm products, livestock, and poultry in the hands of the producer, but it lacks definitions for key terms, leading to inconsistent application of the exemption across counties. HJR 31 aims to resolve this inconsistency by empowering the Legislature to define “farm products” and “in the hands of the producer” through general law. The proposed amendment would also permit the inclusion of livestock, poultry, timber, and farm supplies in the statutory definition of “farm products”​.

The measure promotes clarity and predictability in the tax code, benefiting agricultural producers across the state. By allowing statutory flexibility while maintaining the exemption’s constitutional foundation, it balances local tax authority with consistent statewide application. It also modernizes the language by removing outdated or redundant terms while preserving the Legislature’s ability to re-include those items, such as livestock and poultry, through general law. There is no criminal justice or rulemaking impact, and the fiscal impact is limited to publication costs, with any broader effects dependent on future enabling legislation​.

From a liberty principles perspective, HJR 31 reinforces individual liberty and private property rights by clarifying and maintaining protections for producers’ goods. It supports free enterprise by ensuring equitable treatment for farmers and ranchers in different taxing jurisdictions and aligns with the principle of limited government by narrowing judicial interpretation in favor of legislative clarity. Overall, this measure empowers voters to uphold a longstanding exemption in a clearer and more administratively sound form, and as such, Texas Policy Research recommends that lawmakers vote YES on HJR 31.

• Individual Liberty: The bill enhances individual liberty by providing agricultural producers with greater certainty in the law. By allowing the Legislature to define “farm products” and “in the hands of the producer,” the resolution ensures that individuals engaged in farming can rely on consistent and predictable tax treatment. This protects them from arbitrary or uneven application of property taxes by local jurisdictions, reducing the risk of government overreach into private agricultural activities.
• Personal Responsibility: By safeguarding property tax exemptions on products actively involved in agricultural operations, the bill helps producers retain more of their income. This supports self-reliance and allows them to reinvest in their businesses, rather than relying on government subsidies or aid. When the tax code is clear and equitable, individuals are better able to plan responsibly and manage their resources with confidence.
• Free Enterprise: A fair and consistent tax environment is critical for the functioning of a healthy agricultural economy. The bill promotes free enterprise by reducing the uncertainty and compliance burden that inconsistent interpretations of constitutional exemptions can impose. Producers can compete and operate in a marketplace free from tax-induced distortions, which is especially important in rural Texas where agriculture remains a foundational industry.
• Private Property Rights: The resolution directly reinforces private property rights by continuing to exempt from taxation farm products held by producers. It acknowledges that property in productive use—such as crops, livestock, and timber—should not be subject to penalizing taxation merely because it is in temporary possession awaiting sale or use. This aligns with the principle that individuals should not be unduly taxed on the fruits of their labor.
• Limited Government: By clarifying the scope of legislative authority, the resolution limits the role of courts or taxing authorities in interpreting the Constitution’s vague language. It appropriately places the power of definition in the hands of the elected Legislature, subject to the will of voters. This avoids judicial activism and preserves a smaller, more accountable government that acts through clear statutes rather than broad interpretations.

• HB 255 (Enabled by)