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Bill

HJR 171

Proposing a constitutional amendment exempting tangible personal property from ad valorem taxation.

89th Legislature (2025) Introduced by Brent Money

Exempts tangible personal property from ad valorem taxes at state and local levels, shrinking the tax base and reducing funding for schools and local governments.

Referred to Ways & Means
#propertyinterests--personalproperty(i0600) #propertyinterests--realproperty(i0595) #resolutions--constitutionalamendments(i0661) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-assessment&collection(i0798) #taxation--property-exemptions(i0793) #transportation--railroads(i0821)
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Bill Summary · HJR 171

Summary of HJR 171 (2025)

Overview and purpose

  • HJR 171 is a joint resolution proposing a constitutional amendment that would exempt tangible personal property from ad valorem (property) taxation.
  • The bill is designed to remove the tax liability on tangible personal property from the ad valorem tax base, while real property and intangible property are not expressly affected by this resolution (as described in the bill’s title and subject).

Key provisions (as proposed)

  • Create a constitutional exemption: Tangible personal property would be exempt from ad valorem taxation at the state and local level.
  • Scope of exemption: Applies to all tangible personal property within the state. Real property and intangible property would remain subject to their current tax framework unless otherwise amended by future legislation.
  • Administrative implications: Would require changes to the existing property tax system, including how property is assessed, reported, and funded at the local level. Local appraisal districts and taxing units would need to adjust processes, budgets, and revenue planning to reflect the new exemption.
  • Funding and revenue considerations: Likely to reduce the ad valorem tax base, potentially affecting revenue for schools, counties, municipalities, and transportation-related services (e.g., railroads), necessitating recalibration of tax rates, funding formulas, or alternative revenue sources.

Affected parties and impact

  • Primary beneficiaries: Owners of tangible personal property (e.g., business equipment, inventories, and other movable property) would no longer pay ad valorem tax on that property.
  • Potential secondary effects: Local governments, school districts, and appraisal districts that rely on ad valorem revenue would experience changes in their funding, which could influence budgeting, service levels, and property tax administration.
  • Real property and intangible property: These would remain under the current tax framework unless subsequent amendments address them.

Procedural status and timeline

  • Introduced: March 6, 2025.
  • Legislative actions:
    • March 6, 2025: Filed.
    • March 31, 2025: Read first time.
    • March 31, 2025: Referred to Ways & Means.
  • Next steps (if advanced): A constitutional amendment in Texas requires approval by two-thirds of both the House and Senate and subsequent voter ratification in a general election.
  • Related bills: SJR 25 (companion) and HJR 145 (companion).

Notes

  • The bill is classified as a joint resolution and is currently in committee (Ways & Means). Its ultimate effect depends on passage by both chambers and voter approval, which would enact a constitutional change affecting the property tax system and local government financing.

Compiled from official sources — confirm details with the bill’s official record.

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