Under current Texas law, businesses and other owners of tangible personal property used for income production receive an automatic exemption from ad valorem taxation only for property with a taxable value of two thousand five hundred dollars or less. Property above that value is fully subject to local property taxes, affecting equipment, inventory, and other income-generating assets. Concerns about high administrative burdens and tax liabilities for small and medium enterprises prompted the legislature to propose this amendment. House Joint Resolution 1 would amend the Texas Constitution to authorize the legislature to exempt up to one hundred twenty-five thousand dollars of the market value of tangible personal property that a person owns and uses for the production of income. The exemption would apply per taxing unit, meaning a taxpayer could claim the full exemption in each jurisdiction where their property has taxable situs. Real property and intangible assets would remain unaffected. The Legislative Budget Board estimates that school districts would lose approximately one hundred ninety-three million five hundred thousand dollars in general revenue recapture payments in 2027, with more than one hundred million dollars in ongoing annual state general revenue costs thereafter. Other local taxing entities such as cities and counties would face reduced property tax collections unless they raise rates or reduce spending. The state budget would provide supplemental funding to cover school district losses under current fiscal provisions. Supporters argue that raising the exemption level will reduce compliance and administrative costs for businesses, encourage investment in equipment and inventory, and foster job creation by lowering the cost of doing business. Opponents warn that embedding the exemption in the constitution reduces local control, may shift tax burdens to other taxpayers, and constrains future legislative flexibility to adjust property tax policy in response to changing economic conditions. If approved by voters, the amendment would take effect for ad valorem taxes imposed for tax years beginning on or after January 1, 2026, contingent on the companion legislation enacting the one hundred twenty-five thousand dollar exemption. If voters reject the amendment, the current two thousand five hundred dollar exemption remains in place and the enabling legislation has no effect.