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Bill

HJR 1

Proposing a constitutional amendment to authorize the legislature to exempt from ad valorem taxation a portion of the market value of tangible personal property a person owns that is held or used for the production of income.

89th Legislature (2025) Introduced by Daniel Alders and 87 co-sponsors

Constitutional amendment authorizing Texas legislature to exempt portions of business equipment and machinery from property taxes, pending voter approval.

Filed with the Secretary of State
#business&commerce--general(i0050) #propertyinterests--personalproperty(i0600) #resolutions--constitutionalamendments(i0661) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793)
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Bill Summary · HJR 1

Legislative bill overview

HJR 1 proposes a constitutional amendment to allow the Texas legislature to exempt a portion of the market value of tangible personal property used for income production from ad valorem (property) taxation. This would require voter approval through a statewide referendum and would give lawmakers discretion to determine which property qualifies and what exemption percentage applies.

Why is this important

Property taxes on business equipment and machinery represent a significant cost for manufacturing, agricultural, and other income-producing enterprises in Texas. This amendment would enable the state to reduce that tax burden, potentially affecting state revenue while making Texas more competitive for business investment. The outcome depends entirely on how the legislature chooses to exercise this new authority.

Potential points of contention

  • Revenue impact uncertainty: The fiscal effect is unknown until the legislature decides what percentage to exempt and which properties qualify, making budget planning difficult
  • Fairness concerns: Creating tax breaks for business property while residential property remains fully taxed raises questions about equitable treatment across different taxpayer classes
  • Local government funding: Since ad valorem taxes fund schools and local services, exemptions could shift revenue burdens or reduce funding unless replaced by alternative sources

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

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