H.J.R. 4, passed by the 89th Texas Legislature, would add a new section to Article VIII of the Texas Constitution to ban the legislature from enacting any occupation tax on registered securities market operators or any tax on securities transactions conducted by such operators. The amendment defines registered securities market operators to include entities subject to federal registration and regulation as of January 1, 2025, such as self-regulatory organizations, financial institutions, brokers, dealers, clearing agencies, transfer agents, national securities exchanges, alternative trading systems, boards of trade, commodity pool operators, derivatives clearing organizations, electronic trading facilities, organized exchanges, affiliates, subsidiaries, facilities, and trade reporting facilities. The amendment also clarifies that it does not prohibit the imposition of existing taxes such as general business taxes measured by business activity, taxes on the production of minerals, insurance premium taxes, sales and use taxes on tangible personal property or services, fees based on the cost of processing or creating documents, or changes to the rates of taxes in existence on January 1, 2026. Proponents say the measure prepares for the establishment of the Texas Stock Exchange and shields investors, retirement accounts, and other securities transactions from potential future taxation, thereby reinforcing Texas’s pro-business environment. According to the Legislative Budget Board, because Texas does not currently impose occupation or transaction taxes on securities, there is no anticipated fiscal impact on the state or local governments, aside from publication costs estimated at approximately $191,700.