House approves HJR1 sending $250,000 business personal property exemption to fall ballot; amendment bids tabled

The Texas House adopted House Joint Resolution 1 on April 2, a proposed constitutional amendment that would allow the Legislature to exempt up to $250,000 of a business’s tangible personal property from ad valorem taxation and place the question on the Nov. 4, 2025 ballot.

Representative Meyer, the resolution’s author, said the change would raise the exemption from $2,500 to $250,000 and called it “the second largest exemption of its kind in the country,” saying it would “provide substantial savings to businesses across the state, especially many small businesses within each of our districts.” The resolution passed on a record vote, 132 ayes to 13 nays.

Debate included multiple proposed amendments from Representative Verdell to increase the exemption beyond the $250,000 in the resolution (including a subsequent proposal to increase it to $500,000). Members voted to table Verdell’s amendment motions; the two motions to table prevailed by recorded votes of 102 ayes to 42 nays and 109 ayes to 34 nays. Representative Myers moved to table during debate, arguing the House was aligned with the Senate on the overall amount of tax relief currently under negotiation.

Representative Meyer and others described HJR1 as the measure to be placed before voters; Representative Meyer told members, “This HJR will be placed on the 11/04/2025 ballot to allow for voters to decide for themselves whether to enact this change.”

Companion enabling legislation, HB9, which would implement the exemption and remove some paperwork requirements for qualifying small businesses, passed to engrossment later in the day by a recorded vote of 32 ayes to 12 nays. Representative Meyer said HB9 “also eliminates the onerous paperwork that many of our small business owners have to go through currently if they're under the $250,000 threshold.”

Supporters framed the package as targeted relief for small businesses that pay taxes on inventory and equipment in addition to sales taxes. Representative Bernal pressed the author on how the change would touch small “mom-and-pop” shops, and Meyer confirmed the measure is intended to reduce compliance burdens and potential over-assessments. Opponents pressed on fiscal tradeoffs and whether local taxing entities could offset any revenue loss.

Outcome: HJR1 was approved for placement on the November 2025 ballot (132–13). HB9 passed to engrossment (32–12). Multiple amendments to raise the exemption were tabled by recorded votes.