BILL ANALYSIS

Senate Research Center	H.J.R. 1
89R14622 TJB-D	By: Meyer et al. (Bettencourt)
	Local Government
	5/2/2025
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

H.J.R. 1 proposes 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.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 1(g), Article VIII, Texas Constitution, as follows:

(g) Authorizes the legislature by general law to exempt from ad valorem taxation $250,000 of the market value of tangible personal property a person owns that is held or used for the production of income. Deletes existing text authorizing the legislature to exempt from ad valorem taxation tangible personal property that is held or used for the production of income and has a taxable value of less than the minimum amount sufficient to recover the costs of the administration of the taxes on the property, as determined by or under the general law granting the exemption.

SECTION 2. Provides that the following temporary provision is added to the Texas Constitution:

TEMPORARY PROVISION. (a) Provides that this temporary provision applies to the constitutional amendment proposed by the 89th Legislature, Regular Session, 2025, 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.

(b) Provides that the amendment to Section 1(g), Article VIII (Taxation and Revenue), of this constitution takes effect for the tax year beginning January 1, 2025.

SECTION 3. Requires that the proposed constitutional amendment be submitted to the voters at an election to be held November 1, 2025. Sets forth the required language of the ballot.