Proposing a constitutional amendment exempting tangible personal property from ad valorem taxation.
Impact
The proposed amendment, if passed, would significantly alter the state's approach to property taxation by removing an existing tax on tangible personal property. This could have substantial implications for business owners and individuals who own such property, as it would effectively lower their overall tax burden. Business groups are likely to support the bill, viewing it as a means to enhance economic flexibility and encourage investment by alleviating some financial pressure associated with property taxes.
Summary
HJR145 is a proposed joint resolution aiming to amend the Texas Constitution to exempt all tangible personal property from ad valorem taxation. This amendment seeks to simplify the taxation process for tangible personal property, as it currently faces tax assessments. The change is designed to take effect on January 1, 2026, and applies only to taxes imposed after that date, while providing a temporary provision that allows for the collection of taxes on certain properties that had previously been taxed until any related debts are discharged.
Contention
There may be points of contention surrounding this bill, particularly related to how the removal of the tax could affect local revenue streams that depend on property tax assessments. Local governments may express concerns that the reduction in tax revenue could lead to cuts in essential services or necessitate increased taxes in other areas to make up for the revenue loss. Stakeholders may also debate the merits of tax equity, questioning whether exempting tangible personal property ultimately favors wealthier individuals or corporations over lower-income residents.
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.