According to the Legislative Budget Board (LBB), HJR 6 would result in a net cost to the state of $191,689 for the 2026 fiscal year due to expenses related to publishing the proposed constitutional amendment on the November 2025 ballot. This is a one-time administrative cost and would not recur in subsequent years.

In addition to publication costs, the measure would lead to an estimated revenue loss of $304,000 to the Property Tax Relief Fund over the 2026–2027 biennium. This loss originates from an anticipated decrease in franchise tax collections—primarily from business trusts that would no longer be taxed on capital gains revenue. Under current policy, capital gains contribute a modest portion to the tax base for certain entities. While this impact is relatively limited, the amendment would eliminate any future opportunity to use capital gains as a taxable base for these entities.

Importantly, because the Property Tax Relief Fund supports the Foundation School Program, the revenue shortfall must be offset by an equal transfer from the state’s General Revenue Fund. As such, this measure effectively shifts a portion of the school funding burden onto the General Revenue, thereby reducing fiscal flexibility for other state priorities.

No significant fiscal impact is projected for local governments, as they do not currently tax capital gains and the proposed amendment does not alter their taxing authority.

Overall, while the short-term fiscal implications of H.J.R. 6 are relatively modest, the resolution would constitutionally constrain future revenue options for the Legislature.

HJR 6 represents a proactive constitutional safeguard that aligns with Texas' longstanding fiscal philosophy of limited taxation and pro-growth policy. Although the state currently does not tax individual income, including capital gains, this measure would enshrine a specific prohibition against both realized and unrealized capital gains taxes. This would prevent future legislatures from imposing such taxes without a subsequent constitutional amendment, providing long-term predictability for investors, businesses, and taxpayers.

The bill analysis underscores the strategic economic rationale behind this resolution. Capital gains taxes can distort investment decisions, reduce aggregate savings, and hinder economic development. By constitutionally banning such taxes, Texas strengthens its appeal as a competitive, low-tax state, preserving its favorable business climate. This aligns with the values of individual liberty, free enterprise, and limited government.

From a fiscal standpoint, the short-term impact is minimal—a one-time publication cost of approximately $191,689 and an estimated biennial revenue loss of $304,000 to the Property Tax Relief Fund, which must be backfilled from general revenue. These are modest trade-offs when weighed against the broader policy objective of maintaining a tax structure that encourages growth and investment.

Given the resolution’s consistency with core liberty principles—particularly the protection of private property, promotion of personal responsibility, and prevention of future tax expansion—its adoption would serve the long-term economic and constitutional interests of the state. Therefore, Texas Policy Research recommends that lawmakers vote YES on HJR 6.

• SJR 18 (Same As)