Texas Proposition 6, Prohibit Taxes on Certain Securities Transactions Amendment (2025)

Texas Proposition 6
Election date November 4, 2025
Topic Business taxes
Status On the ballot
Type Legislatively referred constitutional amendment	Origin State legislature

Texas Proposition 6, the Prohibit Taxes on Certain Securities Transactions Amendment, is on the ballot in Texas as a legislatively referred constitutional amendment on November 4, 2025.

A "yes" vote supports amending the state constitution to prohibit laws that impose an occupation tax on a registered securities market operator or a securities transaction tax.

A "no" vote opposes amending the state constitution to prohibit laws that impose an occupation tax on a registered securities market operator or a securities transaction tax.

Overview

What would the amendment prohibit?

See also: Text of measure

The amendment would prohibit the Texas State Legislature from passing laws that impose an occupation tax on certain entities transacting securities or a tax on certain securities transactions.

The amendment would define security as it is defined in federal law (Securities Exchange Act of 1934) as of January 1, 2025. Federal law defines security to include stocks, bonds, investment contracts, options, and shares in businesses or resources like oil or gas, as well as certificates or agreements that show you own part of an investment or have the right to buy or sell one.

A registered securities market operator is defined in the amendment as one of the following entities registered and regulated by the United States Securities and Exchange Commission or the United States Commodity Futures Trading Commission:

• a self-regulatory organization, financial institution, broker, dealer, clearing agency, or transfer agent;
• a national securities exchange;
• an alternative trading system, board of trade, commodity pool operator, derivatives clearing organization, electronic trading facility, or organized exchange; or
• a trade reporting facility.

The amendment states that it would not prohibit the imposition of a general business tax, a tax on minerals, an insurance premium tax, sales tax on tangible property or services, or a fee on the cost of document creation or processing.

Do any states levy a financial transaction tax on securities?

Currently, no state levies a financial transaction tax on securities. The federal government does collect a transaction fee on securities sales. The fee is paid by the exchange or broker-dealer. It is a percentage of the dollar value of the securities sold.

According to the Tax Foundation, New York had a financial transaction tax from 1905 to 1981, when the New York Stock Exchange considered leaving the state due to the tax. The tax is still in state law, but the state now offers a 100% rebate on the tax, effectively making it null.

Security transaction taxes were proposed in New York and New Jersey in 2020 but were not enacted by their respective state legislatures.

What are supporters and opponents saying about the amendment?

See also: Support and Opposition

State Rep. Morgan Meyer (R-108) said, “During the COVID-19 pandemic, New York and New Jersey proposed financial transaction taxes, prompting concerns about retirement investments and causing New York and Nasdaq to consider relocating to Texas. With many individuals relying on 401(k)s, IRAs, and pensions for retirement, concerns arose that such a tax could reduce returns and hinder savings. Though both states abandoned the proposals, the risk remains.”

The House Ways and Means Committee summarized opponents’ arguments against the amendment, saying, “HJR 4 would make it harder for future legislatures to make tax policy by including a prohibition on securities transaction taxes in the state constitution. The state may experience an economic downturn and could benefit from having a securities transaction or occupation tax to raise revenues at that time.” By adding the prohibition to the state constitution, any changes to the policy would require another constitutional amendment approved by two-thirds of state legislators and voters.

Text of measure

Ballot title

The ballot title is as follows:

“

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.

”

Constitutional changes

See also: Article 8, Texas Constitution

The measure would add section 30 to Article 8 of the state constitution. The following underlined text would be added: Note: Hover over the text and scroll to see the full text.

Sec.30. (a) In this section:

(1) "Registered securities market operator" means any of the following entities, to the extent the entity is subject to registration with and regulation by the United States Securities and Exchange Commission or the United States Commodity Futures Trading Commission, or the successor in function to either commission:

(A) a self-regulatory organization, financial institution, broker, dealer, clearing agency, or transfer agent, as those terms are defined by the Securities Exchange Act of 1934 (15 U.S.C. Section 78a et seq.) in effect on January 1, 2025;

(B) an exchange that is registered as a national securities exchange under Section 6 of the Securities Exchange Act of 1934 (15 U.S.C. Section 78f);

(C) an alternative trading system, board of trade, commodity pool operator, derivatives clearing organization, electronic trading facility, or organized exchange, as those terms are defined by the Commodity Exchange Act (7 U.S.C. Section 1 et seq.) in effect on January 1, 2025;

(D) an affiliate, subsidiary, or facility of an entity described by Paragraph (A), (B), or (C); or

(E) a trade reporting facility regulated under rules promulgated by the Financial Industry Regulatory Authority and in effect on January 1, 2025.

(2) "Securities transaction" means the purchase or sale of a security, a contract or agreement to purchase or sell a security, or a service to facilitate, match parties to, process, report, clear, or settle the purchase or sale of a security on behalf of a customer.

(3) "Security" has the meaning assigned by the Securities Exchange Act of 1934 (15 U.S.C. Section 78a et seq.) in effect on January 1, 2025.

(b) The legislature may not enact a law that imposes:

(1) an occupation tax on a registered securities market operator; or

(2) a tax on a securities transaction conducted by a registered securities market operator.

(c)This section does not prohibit:

(1) the imposition of:

(A) a general business tax measured by business activity;

(B) a tax on the production of minerals;

(C) a tax on insurance premiums;

(D) sales and use taxes on tangible personal property or services; or

(E) a fee based on the cost of processing or creating documents; or

(2) a change in the rate of a tax in existence on January 1, 2026.

Full text

The full text is available here.

Support

Ballotpedia has not located a campaign in support of the ballot measure. You can share campaign information or arguments, along with source links for this information, with us at editor@ballotpedia.org.

Supporters

Corporations

• Texas Stock Exchange

Organizations

• Texas Policy Research

Arguments

• State Rep. Morgan Meyer (R-108): "During the COVID-19 pandemic, New York and New Jersey proposed financial transaction taxes, prompting concerns about retirement investments and causing New York and Nasdaq to consider relocating to Texas. With many individuals relying on 401(k)s, IRAs, and pensions for retirement, concerns arose that such a tax could reduce returns and hinder savings. Though both states abandoned the proposals, the risk remains. With Texas' development of a fully integrated stock exchange, H.J.R. 4 proposes a constitutional amendment to ban new taxes on securities transfers and financial transactions, protecting Texans and businesses."
• Texas Policy Research: "This measure affirms limited government, free enterprise, and private property rights by protecting investment activity from targeted taxation. It preserves Texas’s pro-business climate without fiscal downside, safeguarding both institutional and individual investors from government interference."

Opposition

Ballotpedia has not located a campaign in opposition to the ballot measure. You can share campaign information or arguments, along with source links for this information, with us at editor@ballotpedia.org.

Opponents

Organizations

• True Texas Project

Arguments

You can share campaign information or arguments, along with source links for this information, at editor@ballotpedia.org.

Campaign finance

See also: Campaign finance requirements for Texas ballot measures

Ballotpedia has not identified any committees registered to support or oppose the measure. If you are aware of a committee registered to support or oppose this amendment, please email editor@ballotpedia.org.

	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
Support	$0.00	$0.00	$0.00	$0.00	$0.00
Oppose	$0.00	$0.00	$0.00	$0.00	$0.00
Total	$0.00	$0.00	$0.00	$0.00	$0.00

Background

Texas Stock Exchange

In January 2025, a group led by Texas Stock Exchange CEO James Lee and financed by institutional investors, including Charles Schwab, Fortress, BlackRock, and Citadel Securities, announced plans to file and begin operating a national stock exchange headquartered in Dallas, Texas, starting in 2026. The exchange would facilitate listings of public companies, exchange-traded products (ETPs), and American depositary receipts (ADRs).

The U.S. has 13 stock market exchanges as of 2025.

Federal securities transaction fee

Under Section 31 of the Securities Exchange Act of 1934, the federal government collects fees for securities transactions on the exchanges and certain over-the-counter markets. An over-the-counter market is a decentralized financial market where securities (stocks, bonds, and derivatives) are traded directly between parties, rather than on a formal exchange. The fee is paid by the exchange or broker-dealer. It is a percentage of the dollar value of the securities sold and is set at a rate to cover the commission's budget appropriated by the federal government each fiscal year. The rate for fiscal year 2024 was $27.80 per million dollars for covered sales. Covered sales include securities on national securities exchanges, such as the New York Stock Exchange or Nasdaq, and sales by or through members of a national securities association, like FINRA, that occur outside of an exchange. On April 8, 2025, the SEC announced that the rate would decrease to $0.00 per million beginning on May 14, 2025, because the revenue from the fee was expected to generate the appropriated amount for fiscal year 2025 by that date.

Proposed financial transaction taxes in New York and New Jersey, 2020

New York proposals

New York had a financial transaction tax from 1905 to 1981, when the New York Stock Exchange considered leaving the state due to the tax. The tax is still in state law, but the state now offers a 100% rebate on the tax, effectively making it null. A bill by State Rep. Phil Steck (D-110) proposed during the 2019-2020 legislative session would have repealed the rebate and taxed the sale of a stock between $0.0125 and $0.05, depending on the value of the stock being sold. The revenue would have been dedicated to the state's general fund for three fiscal years and then to state infrastructure thereafter.

Rep. Steck pointed to international exchanges that have similar taxes, saying, "Every single significant exchange in the world has a financial transaction tax save one, which is Germany, and they've proposed it there. Is the London Stock Exchange out of business? Have they moved to Dublin?" Freeman Klopott, a spokesman for former Gov. Andrew Cuomo's (D) budget office, voiced concerns about institutions moving away from New York if the tax were enacted, saying, "In the digital age it would be even easier for transactions to simply be moved out of state to avoid the tax."

New Jersey Assembly Bill 4402

During the 2020-2021 legislative session, the New Jersey State Legislature proposed Assembly Bill 4402, which proposed imposing a tax on high-quantity processors of financial transactions at $0.0025 per transaction. The bill was referred to the Assembly Financial Institutions and Insurance Committee, but it did not receive a vote by either chamber.

Texas constitutional amendments to prohibit taxes

Since 1993, Texas voters have decided on three amendments to prohibit future taxes by adding the prohibitions to the state constitution. All three were approved. In 2025, voters will decide on three amendments to prohibit future taxes.

Year	Type	Title	Description	Result	Yes Votes	No Votes
2025	LRCA	Proposition 2	Prohibit a tax on the realized or unrealized capital gains of an individual, family, estate, or trust		0 (0%)	0 (0%)
2025	LRCA	Proposition 6	Prohibit the enactment of laws that impose taxes on entities that enter into transactions conveying securities or on certain securities transactions		0 (0%)	0 (0%)
2025	LRCA	Proposition 8	Prohibit the state legislature from enacting laws imposing taxes on a decedent's property or the transfer of an estate		0 (0%)	0 (0%)
2023	LRCA	Proposition 3	Prohibit a wealth or net worth tax	a	1,712,458 (68%)	809,815 (32%)
2019	LRCA	Proposition 4	Prohibit the state from levying an income tax on individuals to the Texas Constitution	a	1,477,373 (74%)	509,547 (26%)
1993	LRCA	Proposition 4	Prohibit personal income tax without voter approval, directing revenue to education and limiting local school tax rates.	a	775,822 (69%)	343,638 (31%)

Path to the ballot

Amending the Texas Constitution

See also: Amending the Texas Constitution

A two-thirds (66.67%) vote is required during one legislative session for the Texas State Legislature to place a constitutional amendment on the ballot. That amounts to a minimum of 100 votes in the Texas House of Representatives and 21 votes in the Texas State Senate, assuming no vacancies. Amendments do not require the governor's signature to be referred to the ballot.

House Joint Resolution 4 (2025)

The following is the timeline of the constitutional amendment in the state legislature:

• February 27, 2025: House Joint Resolution 4 (HJR 4) was filed. HJR 4 was sponsored by State Sen. Tan Parker (R-12).
• March 17, 2025: HJR 4 was reported favorably without amendments by the House Ways and Means Committee.
• April 1, 2025: The state House passed HJR 4 by a vote of 111-31, with eight absent or not voting.
• April 16, 2025: HJR 4 was reported favorable without amendments by the Senate Finance Committee.
• April 29, 2025: The state Senate passed HJR 4 by a vote of 28-3.

Partisan Direction Index = +41.8% (Lean Republican)

Democratic Support

54.5%

Republican Support

96.3%

How does this vote compare to other legislative ballot measures in 2025?
Learn more about the ballot measures PDI →

 Texas House of Representatives

Voted on April 1, 2025

Votes Required to Pass: 100
	Yes	No	NV
Total	111	31	8
Total %	74.0%	20.6%	5.4%
Democratic (D)	28	27	7
Republican (R)	83	4	1

Texas State Senate

Voted on April 29, 2025

Votes Required to Pass: 21
	Yes	No	NV
Total	28	3	0
Total %	90.3%	9.7%	0.0%
Democratic (D)	8	3	0
Republican (R)	20	0	0

How to cast a vote

See also: Voting in Texas

See below to learn more about current voter registration rules, identification requirements, and poll times in Texas.

How to vote in Texas

Poll times

In Texas, all polling places are open from 7:00 a.m. to 7:00 p.m. local time. Texas is divided between the Central and Mountain time zones. An individual who is in line at the time polls close must be allowed to vote.

Registration

Check your voter registration status here.

To register to vote in Texas, an applicant must be a United States citizen, a resident of the county in which he or she is registering, and at least 17 years and 10 months old.

The deadline to register to vote is 30 days before the election. Prospective voters can request a postage-paid voter registration form online or complete the form online and return it to the county voter registrar. Applications are also available at a variety of locations including the county voter registrar’s office, the secretary of state’s office, libraries, and high schools. Voter registration certificates are mailed to newly registered voters.

Automatic registration

Texas does not practice automatic voter registration.

Online registration

See also: Online voter registration

Texas does not permit online voter registration.

Same-day registration

Texas does not allow same-day voter registration.

Residency requirements

Prospective voters must reside in the county in which they are registering to vote.

Verification of citizenship

See also: Laws permitting noncitizens to vote in the United States

Texas does not require proof of citizenship for voter registration. An individual applying to register to vote must attest that they are a U.S. citizen under penalty of perjury.

State law requires election officials to conduct a check of registered voters' citizenship status. Section 18.068 of the Texas Election Code says the following:

“	The secretary of state shall quarterly compare the information received under Section 16.001 of this code and Section 62.113, Government Code, to the statewide computerized voter registration list. If the secretary determines that a voter on the registration list is deceased or has been excused or disqualified from jury service because the voter is not a citizen, the secretary shall send notice of the determination to the voter registrar of the counties considered appropriate by the secretary.	”
—Section 18.068, Texas Election Code

In January 2019, the Texas secretary of state’s office announced that it would be providing local election officials with a list of registered voters who obtained driver’s licenses or IDs with documentation such as work visas or green cards. Counties would then be able to require voters on the list to provide proof of citizenship within 30 days. The review was halted by a federal judge in February 2019, and Secretary of State David Whitley rescinded the advisory in April. A news release from Whitley’s office stated that “... going forward, the Texas Secretary of State's office will send to county voter registrars only the matching records of individuals who registered to vote before identifying themselves as non-U.S. citizens to DPS when applying for a driver's license or personal identification card. This will ensure that naturalized U.S. citizens who lawfully registered to vote are not impacted by this voter registration list maintenance process.”

All 49 states with voter registration systems require applicants to declare that they are U.S. citizens in order to register to vote in state and federal elections, under penalty of perjury or other punishment. Seven states — Alabama, Arizona, Georgia, Kansas, Louisiana, New Hampshire, and Wyoming — have laws requiring verification of citizenship at the time of voter registration, whether in effect or not. In three states — California, Maryland, and Vermont — at least one local jurisdiction allows noncitizens to vote in some local elections. Noncitizens registering to vote in those elections must complete a voter registration application provided by the local jurisdiction and are not eligible to register as state or federal voters.

Verifying your registration

The Texas Secretary of State’s office allows residents to check their voter registration status online by visiting this website.

Voter ID requirements

Texas requires voters to present photo identification while voting.

The following list of accepted ID was current as of February 2023. Click here for the Texas Secretary of State's page on accepted ID to ensure you have the most current information.

• Texas driver’s license issued by the Texas Department of Public Safety (DPS)
• Texas Election Identification Certificate issued by DPS
• Texas Personal Identification Card issued by DPS
• Texas handgun license issued by DPS
• United States Military Identification Card containing the person’s photograph
• United States Citizenship Certificate containing the person’s photograph
• United States passport (book or card)

Identification provided by voters aged 18-69 may be expired for no more than four years before the election date. Voters aged 70 and older can use an expired ID card regardless of how long ago the ID expired.

Voters who are unable to provide one of the ID options listed above can sign a Reasonable Impediment Declaration and provide one of the following supporting documents:

• Copy or original of a government document that shows the voter’s name and an address, including the voter’s voter registration certificate
• Copy of or original current utility bill
• Copy of or original bank statement
• Copy of or original government check
• Copy of or original paycheck
• Copy of or original of (a) a certified domestic (from a U.S. state or territory) birth certificate or (b) a document confirming birth admissible in a court of law which establishes the voter’s identity (which may include a foreign birth document)

The following voters are exempt from showing photo ID:

• Voters with a disability
  • Voters with a disability "may apply with the county voter registrar for a permanent exemption to presenting an acceptable photo identification or following the Reasonable Impediment Declaration procedure in the county."
• Voters who have a religious objection to being photographed

Voters who do not have a photo ID can obtain a Texas Election Identification Certificate (EIC) at any Texas driver’s license office during regular business hours. Voters can also obtain an Election Identification Certificate from a mobile station. Locations are listed here.

See also

2025 ballot measures

View other measures certified for the 2025 ballot across the U.S. and in Texas.

• 2025 ballot measures
• Texas 2025 ballot measures
• Texas elections, 2025

Texas ballot measures

Explore Texas's ballot measure history, including constitutional amendments.

• List of Texas ballot measures
• Texas Historical Ballot Measures Factbook
• Business taxes ballot measures
• Texas State Legislature

Legislative process

Understand how measures are placed on the ballot and the rules that apply.

• Legislatively referred constitutional amendment
• Texas Constitution
• Amending state constitutions

External links

• Text of HJR 4

Footnotes

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