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HJR 6

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 Giovanni Capriglione and 2 co-sponsors

Texas constitutional amendment would permanently ban state taxation of realized or unrealized capital gains for individuals and trusts.

Laid on the table subject to call
#resolutions--constitutionalamendments(i0661) #taxation--inheritance(i0811)
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WeVote Research Nonpartisan
Bill Summary · HJR 6

Legislative bill overview

HJR 6 proposes a constitutional amendment to Texas's state constitution that would permanently prohibit any tax on capital gains—whether realized (when assets are sold) or unrealized (the annual increase in asset value)—for individuals, families, estates, or trusts. The amendment would require voter approval through a statewide referendum to take effect.

Why is this important

Capital gains taxes are a significant revenue source for some states and the federal government, and preventing them limits future tax policy options. This proposal reflects broader national debate about wealth taxation and represents a permanent constitutional constraint on state revenue-raising authority that would apply to all future legislatures.

Potential points of contention

  • Revenue implications: Prohibiting capital gains taxes eliminates a potential revenue stream Texas could use for education, infrastructure, or healthcare without raising other taxes
  • Wealth inequality concerns: Critics argue such protections disproportionately benefit wealthy individuals who derive income primarily from investments rather than wages
  • Constitutional rigidity: Enshrining tax policy in the constitution makes it extremely difficult to change, even if future economic circumstances warrant reassessment
  • Unrealized gains ambiguity: The provision against taxing unrealized gains targets hypothetical future proposals (like those debated federally) but may create legal complexity if interpreted narrowly

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

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