Prohibition on Levying Ad Valorem Taxes on Tangible Personal Property

2026 Regular Session Introduced by Mack Bernard and 1 co-sponsor

Amends the constitution to ban ad valorem taxes on tangible personal property, reshaping local revenue; requires voter approval to take effect.

Died in Finance and Tax

#(adopted) #subjectindex

Overview

SJR 550 is a joint resolution filed on November 18, 2025, proposing a constitutional amendment to prohibit the levy of ad valorem taxes on tangible personal property. As a joint resolution, the measure is intended to modify the state constitution and would typically require voter ratification to take effect.

What the bill would do

Core change: Prohibit the use of ad valorem (value-based) taxes on tangible personal property.

Scope (as described): Tangible personal property includes physically tangible assets such as business equipment, inventory, and other personal property not classified as real estate.

Constitutional mechanism: Being a joint resolution, the proposed amendment would seek to amend the state constitution rather than ordinary statute.

Key provisions and considerations (as available)

The text of the amendment is not provided in the summary. The essential concept is a prohibition on taxing tangible personal property by ad valorem means, which would remove a tax base currently used for local government revenue in many jurisdictions.

Because this is a constitutional amendment, it would require the standard statewide ratification process (subject to the state’s specific constitutional amendment procedures) after legislative approval.

Who would be affected

Taxpayers and business owners: Entities that currently own tangible personal property subject to ad valorem taxation could see changes in tax obligations once the amendment takes effect.

Local governments and school districts: Regions that rely on tangible personal property tax revenue would need alternative funding sources or revenue adjustments.

Tax assessors and tax rolls: Administrative systems for valuing and levying ad valorem taxes on tangible personal property would be affected or eliminated for this tax base.

Procedural and timeline aspects

Status: Filed (introduced November 18, 2025).

Legislative action noted: 2025-11-18: Filed.

Next steps (typical for a constitutional amendment):

Passage by the state legislature (both chambers, per jurisdiction).
Submission to voters for statewide ratification in a general election or designated ballot.
If ratified, the amendment would become part of the state constitution and binding on all levels of government.

Next steps for readers

Review the full text of SJR 550 to confirm precise language, definitions (e.g., what qualifies as tangible personal property), and any transitional provisions.

Monitor committee hearings and fiscal notes to understand anticipated revenue impacts and implementation timelines.

Consider potential effects on local budgets, service delivery, and alternative funding mechanisms if the amendment advances.

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