Your Guide to Propositions on the Texas Ballot—Clear, Concise, and Local
In covering this year’s ballot, our mission is simple—equip our readers with clear, accessible information about each proposition and its real impact.
Propositions 4-9, What Do They Mean?
Proposition 4 (Water infrastructure funding):
The constitutional amendment to dedicate a portion of the revenue derived from state sales and use tax revenues for the Texas water fund and to provide for the allocation and use of that revenue.
This legislation dedicates $1 billion of sales and the use of tax revenues annually to the Texas Water Fund each state fiscal year beginning in fiscal year 2028.
Proposition 5 (Tax exemption on animal feed):
The constitutional amendment authorizing the legislature to exempt from ad valorem taxation tangible personal property consisting of animal feed held by the owner of the property for sale at retail.
It’s purpose includes reducing retailer costs and keeping storage costs from being passed on to the consumer. Opponents of the exemptions say that this gives an unfair tax benefit to feed sellers, as almost all other forms of inventory are subject to property tax.
Proposition 6 (Securities tax ban):
The constitutional amendment prohibits the Legislature from imposing an occupation tax on certain entities that enter into transactions conveying securities or imposing a tax on certain securities transactions.
Supporters state that taxes on financial transactions raise transaction costs, which can lead to decreased trade volume, lower asset prices, produce less efficient markets and can lead to the cost of capital and consumer goods, among other things. Opponents point out that the benefits are primarily for the wealthy, and that banning revenue streams before they exist means that the bulk of local revenue will need to continue coming from property taxes, which burdens working class individuals.
Proposition 7 (Tax exemption for veterans’ spouses):
The constitutional amendment providing for an exemption from ad valorem taxation of all of part of the market value of the residence homestead of the surviving spouse of a veteran who died of a result of a condition or disease that is presumed to have been serviced connected.
Supporters pointed out that the proposed amendment ensures that all surviving spouses of veterans who have died, due to service – related conditions, are treated fairly. It also demonstrates the state’s commitment to honoring the service and sacrifice both veterans and their families have made.
Opponents allege that the expansion of property tax exemptions to the spouses of deceased veterans could burden other taxpayers with disproportionately higher tax rates.
Proposition 8 (Inheritance tax ban):
The constitutional amendment prohibiting the Legislature from imposing death taxes applicable to a decedent’s property or the transfer of an estate, inheritance, legacy, succession or gift.
Supporters point out that the money a person leaves behind has already been taxed and that death taxes can be burdensome and can lead to inefficient estate planning and tax avoidance strategies. Opponents countered that amending the Constitution to Prohibit a death tax that does not currently exist could hinder future legislatures from acting in the state’s best interest.
Proposition 9 (Inventory and equipment tax exemption):
The constitutional amendment exempting 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. Specifically, it allows the Legislature to exempt $125,000 of value of personal property from ad valorem taxation.
Supporters contend that the exemption would provide tax relief for businesses in Texas, incentivize small businesses to move to or to remain in Texas.
Opponents say the increased exemption would reduce the amount of taxable property value on local tax rolls. Counties, municipalities, and special districts might have to raise tax rates to cover these losses, which could lead to redistribution of the property tax burden to homeowners.
Stay Tuned In
The Legislature appears to have been interested in boosting the state’s economy and its image, with both businesses and homeowners alike. The remaining proposed amendments will be covered in the next issue.
How will county appraisal districts be impacted? We will attempt to get the latest from our sources and keep our readers informed.
