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SJR 18

Proposing a constitutional amendment prohibiting the imposition of a tax on the realized or unrealized capital gains of an individual, family, estate, or trust.

89th Legislature (2025) Introduced by Paul Bettencourt and 8 co-sponsors

Texas constitutional amendment would permanently ban state taxes on capital gains for individuals, families, estates, and trusts, pending voter approval.

Filed with the Secretary of State
#resolutions--constitutionalamendments(i0661) #taxation--inheritance(i0811)
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Bill Summary · SJR 18

Legislative bill overview

SJR 18 proposes a constitutional amendment that would prohibit Texas from imposing taxes on capital gains—whether realized (when an asset is sold) or unrealized (on paper gains while assets are held). The amendment would require voter approval through a statewide ballot measure to take effect.

Why is this important

Capital gains taxes are a potential revenue source that states like California and Washington have implemented or proposed. This amendment would permanently block Texas from adopting such a tax, even if future legislatures wanted to fund state services through this mechanism. It reflects ongoing national debate about wealth taxation and state revenue models.

Potential points of contention

  • Revenue implications: Prohibiting capital gains taxation eliminates a potential funding source for education, infrastructure, or other state services, potentially affecting budget flexibility during economic downturns
  • Wealth distribution concerns: Critics argue such protections disproportionately benefit wealthy individuals and investors who derive income primarily from capital gains rather than wages
  • Constitutional lock-in: Amending the constitution makes reversal extremely difficult; future legislatures cannot adapt tax policy to changing economic conditions without another constitutional amendment requiring voter approval

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

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