Every Texan supports investments in our state that are likely to benefit all Texans – especially low-income Texans. Every Texan believes in a fair tax system and generally opposes across-the-board tax cuts that sacrifice vital revenue Texans rely on for public education, health care, municipal services, and other important services that state and local governments provide.
When Texans head to the polls on Nov. 4, we will be voting on 17 constitutional amendments. To get on the ballot, amendments must first pass by a two-thirds vote in the Texas House and Senate. Because of the higher threshold for passage and the public vote, constitutional amendments are harder to pass than regular legislation. That being said, they’re also harder to amend or overturn. This is not a complete list of amendments on the ballot but covers our primary policy areas of interest.
Special Funds for State Investments
These amendments would create special funds receiving automatic appropriations. Overall, these are worthwhile investments for our state to make in our people.
Proposition 1 – SJR 59
“The constitutional amendment providing for the creation of the permanent technical institution infrastructure fund and the available workforce education fund to support the capital needs of educational programs offered by the Texas State Technical College System.”
Texas State Technical College (TSTC) offers practical, vocational workforce training and is an important component of Texas’ public higher education system. Serving more than 11,000 students at 11 campuses, TSTC focuses on connecting a skilled workforce with communities’ and businesses’ high-demand jobs. This amendment would create a permanent endowment and available fund in the state treasury to ensure more stable funding in the future for TSTC, and it would allow the institution to expand to serve our growing workforce. If the proposition passes, a contingent budget provision will provide $850 million of general revenue to seed the endowment.
Proposition 4 – HJR 7
“The constitutional amendment to dedicate a portion of the revenue derived from state sales and use taxes to the Texas water fund and to provide for the allocation and use of that revenue.”
This amendment addresses our state’s growing need to manage our water supply. Experts tell us droughts are likely to become more frequent and more serious, our existing water infrastructure is aging, and our population is growing. Based on research and recommendations by the Texas Water Development Board, Texas 2036, the Texas Senate Committee on Water, Agriculture, and Rural Affairs, this amendment would allocate $1 billion each year of state sales tax revenue ($49 billion in fiscal 2025) to support the security of Texas’ water supply. While this is a vital need for all Texans, any appropriation paid specifically with sales tax revenue does have a regressive impact, therefore putting more of the fiscal burden on low-income Texans.
Proposition 14 – SJR 3
“The constitutional amendment providing for the establishment of the Dementia Prevention and Research Institute of Texas, establishing the Dementia Prevention and Research Fund to provide money for research on and prevention and treatment of dementia, Alzheimer’s disease, Parkinson’s disease, and related disorders in this state, and transferring to that fund $3 billion from state general revenue.”
As we age, dementia and related diseases will impact an increasing number of Texans, their families, and caregivers. According to DSHS, about 459,000 people are living with Alzheimer’s in Texas, impacting more than 1 million family caregivers with an estimated $24 billion cost to the state economy. Care for Alzheimer’s patients on Medicaid alone costs the state about $4 billion per year.
Likely to inspire further innovations in research and treatment, this proposition is a forward-thinking investment for the state. The fund this would create will initially be seeded with a one-time, $3 billion investment and would allow a $300 million appropriation from it each fiscal year. Modeled on the successful Cancer Prevention and Research Institute of Texas (CPRIT), the institute had broad bipartisan support in the Legislature, demonstrating that this is the kind of long-term, public investment that is an appropriate role for the state to take.
Specific Tax Prohibitions
These amendments would prohibit certain taxes from being enacted, making it more difficult for future legislatures to raise revenue. They are similar to initiatives in prior years that established constitutional prohibitions on a state income tax and a state wealth tax.
Every Texan believes revenue options must not be taken off the table. Although the Legislature began the past two sessions with an unusually large positive carryover balance, our state revenue is rapidly returning to normal levels. There is also a great deal of economic uncertainty on the horizon. Tariffs, layoffs, and federal budget and tax cuts all pose major threats to the stability of our state economy. Federal funding cuts particularly will shift much more responsibility to states, requiring the Legislature to fill the gaps by using more state revenue. Several amendments on the ballot would put up unnecessary and unwise roadblocks to new revenue options.
If implemented, many of the taxes would benefit our state by demanding that wealthy Texans pay their fair share. As the wealthy few reap huge benefits from federal tax cuts, now is the time to demand they contribute more to our state. If enacted, a capital gains tax and securities transactions tax (like a wealth tax and an income tax) would make our regressive state tax system more balanced and fair.fair. Most Texans would likely end up paying less in taxes overall.
These amendments would make it harder for future legislatures to even consider these options going forward. They would contribute “death by a thousand cuts” to our state and local revenue, where the wealthy can alter the tax system to benefit themselves, refuse to pay their share, and leave working Texans to foot the bill for public education, healthcare, and other state and local services.
Proposition 2 – SJR 18
“The constitutional amendment prohibiting the imposition of a tax on the realized or unrealized capital gains of an individual, family, estate, or trust.”
Every Texan opposed the House companion for this resolution, HJR 6. This is similar in spirit to the wealth tax prohibition approved in 2023. Again, this is an attempt to forestall a tax that does not exist, is highly unlikely to be proposed anytime soon, and (if enacted) would be disproportionately paid by wealthy Texans reporting gains on investments.
Proposition 6 – HJR 4
“The constitutional amendment prohibiting the legislature from enacting a law imposing an occupation tax on certain entities that enter into transactions conveying securities or imposing a tax on certain securities transactions.”
This amendment is proposed in preparation for the establishment of the Texas Stock Exchange. A financial transactions tax would presumably be paid by institutions buying and selling securities and then passed on to retail investors, so anyone trading stocks on the Texas exchange would have to pay. If such a tax existed, wealthy Texans would likely pay most of it as they bought and sold equities and other securities on the exchange.
Proposition 8 – HJR 2
“The constitutional amendment to prohibit the legislature from imposing death taxes applicable to a decedent’s property or the transfer of an estate, inheritance, legacy, succession, or gift.”
Texas does not have an estate or inheritance tax. Once again, this prohibition does not apply to any existing tax. It merely removes a potential source of revenue that would be paid by wealthy Texans. And, it makes it harder for future lawmakers to make decisions about revenue and taxation.
Tax Exemptions
Tax cuts mean less funding for the state and local budgets: less money for schools, healthcare, infrastructure, and other needs. Yet, certain tax exemptions may provide special benefits for low-income or otherwise disadvantaged Texans, and they can be wise investments if the overall costs are low.
Instead of expensive, broad-based property tax cuts, Every Texan encourages the Legislature to consider more targeted means of cutting property taxes that assist lower-income Texans.
Proposition 7 – HJR 133
“The constitutional amendment authorizing the legislature to provide for an exemption from ad valorem taxation of all or part of the market value of the residence homestead of the surviving spouse of a veteran who died as a result of a condition or disease that is presumed under federal law to have been service-connected.”
Every Texan supported the enabling legislation for this amendment in committee (HB 2508). The federal PACT Act, passed in 2022, expanded the disability designation for servicemembers. This amendment would harmonize the Texas constitution with that federal law, making more surviving spouses of deceased veterans eligible to receive a homestead property tax exemption. According to the Legislative Budget Board analysis, about 3,000 additional surviving Texas spouses of servicemembers would be eligible for the exemption. This is a good proposal to help those families with a negligible impact on revenue.
Proposition 9 – HJR 1
“The 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.”
Essentially, “tangible personal property” is non-real-estate business property. Businesses pay taxes on that property each year. Under current law, $2,500 of that property is exempt from taxation. Per HB 9, this amendment would substantially increase that exemption to $125,000. This would mean less local revenue for school districts and local governments. Under the school finance formulas, the state would make up for schools’ lost revenue at a cost of $100-200 million each year and a reduction in recapture payments, while local governments would have to absorb the costs.
Like a flat-dollar residence homestead exemption, a larger flat-dollar business property exemption particularly helps small- and medium-sized businesses. Our rough analysis suggests that some appraisal districts could see half or more businesses drop off the rolls, which may relieve some administrative burdens. The downside is that it diminishes revenue while local governments are facing difficulty balancing their budgets. The revenue decrease could be up to $442 million statewide in 2027, but the Legislative Budget Board estimates that local entities could make up for the lost revenue with a small increase in tax rates if necessary.
Proposition 10 – SJR 84
“The constitutional amendment to authorize the legislature to provide for a temporary exemption from ad valorem taxation of the appraised value of an improvement to a residence homestead that is completely destroyed by a fire.”
Current law provides a temporary exemption for homeowners in a governor-declared disaster area. This amendment seems reasonable, and as the state becomes increasingly vulnerable to wildfires, state law should provide relief for those homeowners. It is possible that similar initiatives for other types of disasters may be offered in the future.
Proposition 11 – SJR 85
“The constitutional amendment authorizing the legislature to increase the amount of the exemption from ad valorem taxation by a school district of the market value of the residence homestead of a person who is elderly or disabled.”
This proposition raises the additional homestead exemption for over-65 or disabled homeowners from $10,000 to $40,000, bringing the total exemption for those Texans to $200,000 when combined with Proposition 13 (see below).
As property tax bills continue to rise, such an exemption can help keep low-income elderly in their homes. Yet, Texans are concerned about the cost. Not all senior homeowners are low-income; as mentioned in Every Texan’s testimony on SB 23, 18% of 65+ households (owners and renters) have annual incomes of $125,000 or more. Meanwhile, one-third of Texas’ 10.9 million households are cost-burdened, including half of under-65 renters and two-thirds of 65+ renters. A homestead exemption that takes ability to pay into account would be more complicated, but fairer and less costly.
Proposition 13 – SJR 2
“The constitutional amendment to increase the amount of the exemption of residence homesteads from ad valorem taxation by a school district from $100,000 to $140,000.”
After another large increase in 2023, this amendment would again raise the resident homestead exemption for school districts. This has become a regular practice for the Legislature as property values and tax bills rise. For reference, in 2015 the homestead exemption was only $15,000, with voters that year approving an increase to $25,000.
Because of the way our schools are funded, schools do not lose money. This arrangement would swap local revenue for state revenue. As mentioned in Every Texan’s testimony on SB 4, the flat-dollar homestead exemption—in this case, $140,000 off the taxable value of every homeowner’s residence—is the most equitable way to cut taxes for homeowners. It’s the same amount for everyone, regardless of their home’s value. Such a proposal, however, does nothing for renters, and with the big increases in the homestead exemption in recent years, it is important to carefully consider preserving revenue.
Proposition 17 – HJR 34
“The constitutional amendment to authorize the legislature to provide for an exemption from ad valorem taxation of the amount of the market value of real property located in a county that borders the United Mexican States that arises from the installation or construction on the property of border security infrastructure and related improvements.”
Every Texan has consistently and firmly opposed previous state funding for Operation Lone Star, and Every Texan continues to oppose any effort to incentivize state-supported construction of walls or other border security infrastructure by offering a tax exemption. Border enforcement is the job of the federal government, and state and local revenue should not be sacrificed to pay for it (especially given the lack of transparency around funding that flows through the governor’s office.)
Elections
Proposition 16 – SJR 37
“The constitutional amendment clarifying that a voter must be a United States citizen.”
This amendment is unnecessary and purely performative. Non-citizens cannot vote in U.S. elections.
Voting is a Responsibility
Voting for constitutional amendments is an important way for Texans to get involved in the political process, and every Texan should take that responsibility seriously. Without much else on the ballot, turnout may be low and every vote does matter. Every Texan encourages Texas voters to consider how these amendments will impact them and vote accordingly. When everyone works together, our state can trust in a budget that is a moral document- a true People’s Budget.