Texas House Bill HJR184

Texas 2023 - 88th Regular

• Filed: 3/10/23

Caption

Proposing a constitutional amendment to authorize the legislature to exempt from ad valorem taxation certain tangible personal property held by a manufacturer of medical or biomedical products as a finished good or used in the manufacturing or processing of medical or biomedical products.

Impact

The proposed amendment would amend Article VIII of the Texas Constitution by adding Section 1-x, which specifically allows for the tax exemption targeting manufacturers of medical and biomedical products. If voters approve this in the upcoming election scheduled for November 7, 2023, the legislature will have the authority to enact laws that facilitate these exemptions. This change is expected to make Texas more competitive in attracting and retaining biomedical manufacturing firms, which could lead to job creation and economic benefits for the state.

Summary

HJR184 proposes a constitutional amendment that would empower the Texas legislature to exempt certain tangible personal property from ad valorem taxation if it is either a finished good or used in the manufacturing or processing of medical or biomedical products. This amendment seeks to bolster the state’s manufacturing capabilities, particularly in the biomedical sector, which has been highlighted as crucial following the challenges faced during the COVID-19 pandemic. By removing these tax burdens, the intention is to enhance the operational environment for manufacturers in the state.

Contention

During discussions in the House Ways & Means Committee, supporters highlighted the importance of enhancing Texas's biomedical manufacturing capabilities, especially in light of recent public health crises. A notable point of contention was ensuring that the ballot language for the proposed amendment is clear and understandable for voters. As this resolution is directly tied to the success of another bill (House Bill 4901), it underscores the significance of voter approval for the subsequent legislative actions aimed at tax reform in this sector.