SJR25 - Proposing a constitutional amendment exempting tangible personal property from ad valorem taxation.

  89R640 RDS-D     By: Middleton S.J.R. No. 25       A JOINT RESOLUTION   proposing a constitutional amendment exempting tangible personal   property from ad valorem taxation.          BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 1, Article VIII, Texas Constitution, is   amended by amending Subsection (b) and adding Subsection (b-1) to   read as follows:          (b)  All real property [ and tangible personal property ] in   this State, unless exempt as required or permitted by this   Constitution, whether owned by natural persons or corporations,   other than municipal, shall be taxed in proportion to its value,   which shall be ascertained as may be provided by law. All tangible   personal property in this State is exempt from ad valorem taxation,   except as provided by Subsection (b-1) of this section.           (b-1)     If before January 1, 2026, an ad valorem tax on   tangible personal property is pledged for the payment of a debt, the   appropriate tax authorities may continue to levy and collect the   tax against that tangible personal property at the same rate as the   pledged tax until the debt is discharged, if cessation of the levy   and collection of the tax would impair the obligation of the   contract by which the debt was created. This subsection applies to   tangible personal property that was taxable under the law in effect   on January 1, 2025, but that became exempt under Subsection (b) of   this section on January 1, 2026, as a result of the amendment of   this section adopted by the voters in 2025 to exempt all tangible   personal property from ad valorem taxation.          SECTION 2.  Section 8, Article VIII, Texas Constitution, is   amended to read as follows:          Sec. 8.  All real property of railroad companies shall be   assessed, and the taxes collected in the several counties in which   said real property is situated, including so much of the roadbed and   fixtures as shall be in each county. [ The rolling stock may be   assessed in gross in the county where the principal office of the   company is located, and the county tax paid upon it shall be   apportioned as provided by general law in proportion to the   distance such road may run through any such county, among the   several counties through which the road passes, as a part of their   tax assets. ]          SECTION 3.  The following provisions of Article VIII, Texas   Constitution, are repealed:                (1)  Sections 1(d), (e), and (g);                (2)  Section 1-i;                (3)  Section 1-j;                (4)  Section 1-n, as proposed by S.J.R. 47, 77th   Legislature, Regular Session, 2001;                (5)  Section 1-n, as proposed by S.J.R. 6, 77th   Legislature, Regular Session, 2001;                (6)  Section 1-p;                (7)  Section 1-x;                (8)  Section 19; and                (9)  Section 19a.          SECTION 4.  The following temporary provision is added to   the Texas Constitution:           TEMPORARY PROVISION. The constitutional amendment proposed   by the 89th Legislature, Regular Session, 2025, exempting tangible   personal property from ad valorem taxation takes effect January 1,   2026, and applies only to taxes imposed on or after that date. This   temporary provision expires January 1, 2027.          SECTION 5.  This proposed constitutional amendment shall be   submitted to the voters at an election to be held November 4, 2025.   The ballot shall be printed to permit voting for or against the   proposition: "The constitutional amendment exempting all tangible   personal property in this state from ad valorem taxation."