Proposing a constitutional amendment exempting tangible personal property from ad valorem taxation.
Impact
The adoption of SJR25 would have substantial ramifications for state revenue and local government funding. The exemption of tangible personal property from property taxation could lead to decreased funding for public services reliant on property tax revenue, such as education, infrastructure, and local emergency services. Proponents argue that the amendment would promote business growth and investment by reducing the tax burden on property owners, thereby incentivizing the acquisition and use of tangible personal property, which they suggest could foster economic development and job creation.
Voting
SJR25 is scheduled to be submitted for voter consideration on November 4, 2025. The outcome will depend significantly on how effectively its proponents can communicate the intended benefits while addressing concerns regarding funding and equity in the provision of public services.
Summary
SJR25 proposes a constitutional amendment to exempt all tangible personal property from ad valorem taxation in the state of Texas. This significant change seeks to alter the current provisions in the Texas Constitution, specifically Article VIII, which governs property taxation. By amending Section 1, the resolution aims to relieve individuals and businesses from property tax liabilities on tangible personal property, which has previously been subject to taxation unless specifically exempted by law. If passed, this law would take effect on January 1, 2026, concerning taxes imposed thereafter.
Contention
However, the bill is expected to face opposition from those concerned about the potential loss of revenue for critical public programs. Critics of SJR25 may argue that such tax exemptions primarily benefit businesses rather than the average taxpayer and that the resultant loss of funds could disproportionately affect lower-income communities. Furthermore, debates may arise regarding how this change aligns with the broader context of tax reform and fairness, raising questions about whether it promotes equitable taxation or exacerbates existing inequalities in local government funding.
Proposing a constitutional amendment to authorize the legislature to exempt from ad valorem taxation a percentage of the market value of the tangible personal property a person owns that consists of inventory held for sale at retail.
Proposing a constitutional amendment authorizing the legislature to exempt from ad valorem taxation income-producing tangible personal property having a value of less than a certain amount.
Proposing a constitutional amendment authorizing the legislature to exempt from ad valorem taxation income-producing tangible personal property having a value of less than a certain amount.
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.
Proposing a constitutional amendment authorizing the legislature to exempt from ad valorem taxation tangible personal property consisting of animal feed held by the owner of the property for sale at retail.