Texas House Bill HJR136

Texas 2023 - 88th Regular

• Filed: 3/1/23

Caption

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.

Impact

If enacted, HJR136 would amend Section 1(g) of Article VIII of the Texas Constitution, allowing for a specific exemption that could change how property used for producing income is taxed. By allowing these tax exemptions, the bill could lead to a reduction in overall tax revenue for local governments, depending on how widely it is applied. This change may either spur economic growth or create funding challenges for local services, thus prompting debate among lawmakers and stakeholders regarding its long-term viability and implications for local taxation.

Summary

HJR136 is a joint resolution proposing a constitutional amendment to exempt a portion of the market value of tangible personal property used for production of income from ad valorem taxation. Specifically, the amendment would enable the Texas legislature to exempt up to $2,500 of such property from this taxation. This measure aims to relieve some of the financial burdens on individuals and businesses that present notable investments in personal property for income generation, potentially encouraging economic activities in the state.

Sentiment

The sentiment surrounding HJR136 appears to be mixed. Supporters argue that the proposed amendment will foster economic growth and support entrepreneurs and small business owners by lessening their tax burdens. Conversely, critics express concerns that the loss of tax revenue could adversely affect essential services at the local level and that it may disproportionately benefit wealthier individuals or larger businesses with significant tangible personal property.

Contention

Notable points of contention include discussions on the necessity of such tax exemptions and their long-term impact on local economies. Critics argue that the exemption could create disparities in tax treatment and undermine local governance by shifting resources away from community needs. This debate highlights the tension between promoting state-wide economic initiatives and maintaining adequate revenue for local services, ultimately questioning the fairness and effectiveness of such tax policies.