Texas House Bill HJR102

Texas 2015 - 84th Regular

Caption

Proposing a constitutional amendment authorizing the legislature to exempt from ad valorem taxation by one or more political subdivisions of this state a person's inventory held for sale at retail.

Impact

If enacted, HJR102 could have significant implications for retail businesses across the state, as the removal of ad valorem taxation on inventory would lower operational costs for these entities. This could encourage more businesses to establish or expand their operations in Texas, thereby stimulating economic growth and creating job opportunities. However, it may also lead to reduced revenue for local governments that rely on this tax to fund essential services, raising questions about the sustainability of public financing in the absence of these tax contributions.

Summary

HJR102 proposes a constitutional amendment that would empower the Texas legislature to exempt inventory held for sale at retail from ad valorem taxation by political subdivisions within the state. This amendment introduces Section 1-r to Article VIII of the Texas Constitution, legally authorizing the exemption and granting the legislature the discretion to enact this exemption through general law. The amendment is intended to reduce the financial burden on retailers by lessening their property tax obligations, potentially fostering a more favorable business climate for retail operations in Texas.

Contention

Supporters of HJR102 argue that exempting retail inventory from property taxes is a necessary step to enhance the competitiveness of Texas retailers, allowing them to operate on a level playing field with businesses in states that do not impose such taxes. Conversely, opponents are concerned that this amendment could undermine local governments' financial stability by shifting the tax burden elsewhere or decreasing the funds available for public services. The discussions surrounding the bill may revolve around these contrasting perspectives on the balance between economic incentives for businesses and the fiscal responsibilities of local governance.