Proposing a constitutional amendment exempting tangible personal property from ad valorem taxation.
Impact
The proposed amendment could significantly alter Texas's property taxation landscape, especially concerning local government finances. By exempting tangible personal property from ad valorem taxes, local jurisdictions may experience revenue reductions that could affect their budgets and fiscal stability. This change could necessitate adjustments in local tax policies and funding mechanisms as municipalities seek to address potential shortfalls resulting from the tax exemption. Advocates of the measure argue it will promote economic growth by reducing financial burdens on businesses that own tangible assets, thus fostering a more favorable business environment in Texas.
Summary
HJR171 is a joint resolution proposing a constitutional amendment that seeks to exempt tangible personal property from ad valorem taxation in Texas. The resolution amends Article VIII of the Texas Constitution, eliminating ad valorem tax obligations for tangible personal property, while maintaining specific conditions under which taxes may still be collected. Notably, if a tax on tangible personal property is tied to a debt obligation and is pledged for its payment, taxes can still be levied until that debt is settled. The amendment is set to take effect on January 1, 2026, contingent upon voter approval during an election scheduled for November 4, 2025.
Contention
The primary point of contention surrounding HJR171 lies in the balance between encouraging economic development and protecting local government revenues. Proponents assert that eliminating personal property taxes will attract more businesses and stimulate economic activity by reducing the tax load on these entities. Conversely, opponents warn that such a tax exemption could lead to diminished funding for local services, undermining community resources. Critics have raised concerns about the long-term implications for local governance and service delivery, particularly as the revenue base potentially shrinks due to the exemption.
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.