Texas Proposition 10, Tax Exemption on Medical Equipment and Inventory Amendment (2023)

Texas Proposition 10
Election date November 7, 2023
Topic Taxes
Status a Approved
Type Constitutional amendment	Origin State legislature

Texas Proposition 10, the Tax Exemption on Medical Equipment and Inventory Amendment, was on the ballot in Texas as a legislatively referred constitutional amendment on November 7, 2023.The ballot measure was approved.

A "yes" vote supported amending the state constitution to authorize the state legislature to provide for an ad valorem tax exemption on equipment and inventory manufactured by medical or biomedical companies.

A "no" vote opposed amending the state constitution to authorize the state legislature to provide for an ad valorem tax exemption on equipment and inventory manufactured by medical or biomedical companies.

Election results

Texas Proposition 10
Result		Votes	Percentage
Yes		1,370,569	55.00%
No		1,121,576	45.00%

Results are officially certified.

Source

Overview

What did the amendment do?

See also: Text of measure

The amendment authorized the state legislature to exempt from ad valorem taxation tangible personal property, including finished goods or goods used in the manufacturing process, possessed by a manufacturer of medical or biomedical products. The state legislature passed Senate Bill 2289, the enabling legislation, during the regular legislative session. SB 2289 defines medical and biomedical property as "tangible property that is (A) stored, used, or consumed in the manufacturing or processing of medical or biomedical products by a medical or biomedical manufacturer; or (B) intended for use in the diagnosis, cure, mitigation, treatment, or prevention of a condition or disease or in medical or biomedical research." This included devices, therapeutics, pharmaceuticals, personal protective equipment, tools, implants, instruments, and apparatuses. The law took effect on January 1, 2024.

Who supported and opposed the amendment?

See also: Support and Opposition

Sen. Joan Huffman (R-17) authored the amendment. The Texas Medical Center, Texas Healthcare and Bioscience Institute, Greater Houston Partnership, and Biotechnology Innovation Organization registered in support of the amendment when it was considered by the Senate Finance Committee. No organizations registered in opposition to it.

Text of measure

Ballot title

The ballot title was as follows:

“

The constitutional amendment to authorize the legislature to exempt from ad valorem taxation equipment or inventory held by a manufacturer of medical or biomedical products to protect the Texas healthcare network and strengthen our medical supply chain.

”

Constitutional changes

See also: Article 8, Texas Constitution

The measure added section 1 of Article 8 of the state constitution. The following underlined text was added:

Sec. 1-x. The legislature by general law may exempt from ad valorem taxation the tangible personal property held by a manufacturer of medical or biomedical products as a finished good or used in the manufacturing or processing of medical or biomedical products.

Readability score

See also: Ballot measure readability scores, 2023

Using the Flesch-Kincaid Grade Level (FKGL) and Flesch Reading Ease (FRE) formulas, Ballotpedia scored the readability of the ballot title for this measure. Readability scores are designed to indicate the reading difficulty of text. The Flesch-Kincaid formulas account for the number of words, syllables, and sentences in a text; they do not account for the difficulty of the ideas in the text. The state legislature wrote the ballot language for this measure.

The FKGL for the ballot title is grade level 23, and the FRE is -7. The word count for the ballot title is 37.

Support

Supporters

Corporations

• Biotechnology Innovation Organization
• Greater Houston Partnership
• Texas Healthcare and Bioscience Institute
• Texas Medical Center

Arguments

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

Opposition

Opponents

Organizations

• Huffines Liberty Foundation
• Texans for Fiscal Responsibility
• Texas Eagle Forum
• True Texas Project

Arguments

• True Texas Project: "Exempting certain types of businesses from taxes puts a greater burden on the remaining taxpayers. Exemptions like this have governments picking winners and losers."

Campaign finance

See also: Campaign finance requirements for Texas ballot measures

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

Media editorials

See also: 2023 ballot measure media endorsements

Ballotpedia identified the following media editorial boards as taking positions on the proposition.

Ballotpedia lists the positions of media editorial boards that support or oppose ballot measures. This does not include opinion pieces from individuals or groups that do not represent the official position of a newspaper or media outlet. Ballotpedia includes editorials from newspapers and outlets based on circulation and readership, political coverage within a state, and length of publication. You can share media editorial board endorsements with us at editor@ballotpedia.org.

Support

• Houston Chronicle Editorial Board: "Prop 10, Medical manufacturing tax break: For. While corporate tax breaks shift the tax burden onto others, we recommend this one in hopes that it will boost the Texas Medical Center and support an industry that will benefit Houston."
• San Antonio Express-News Editorial Board: "Proposition 10: Texas is an outlier in the United States when it comes to how it levies property taxes on medical and biomedical companies. Proposition 10 would put Texas in line with much of the country by granting property tax exemptions to manufacturers of medical or biomedical production property tax exemptions for their medical equipment and inventory. This exemption could bolster the state’s medical supply chain and serve as an incentive for medical companies interested in relocating to Texas. Our view: For."
• The Dallas Morning News Editorial Board: "RECOMMENDATION: Yes. Biotech is quickly becoming a big industry in Texas, and eliminating this tax on medical or biomedical equipment will keep that momentum going."
• The Austin Chronicle Editorial Board: "Corporate Tax Break on Medical Devices: Yes. We're generally against tax breaks for corporations, but at least this one would go to manufacturers of medical devices and biomedical products. Let's just hope that the executives at those manufacturing companies will pass their tax savings on to hospitals and patients who need those devices."

Opposition

• Fort Worth Star-Telegram Editorial Board: "If this amendment passes, the Legislature could exempt some medical product inventory from property taxes. As we hinted earlier, enough is enough on such tax carve-outs. Recommendation: Against."
• Austin American-Statesman Editorial Board: "Much of the support for Proposition 10 is based on the idea that it will provide incentive for manufacturers to invest in Texas. That's an argument based on conjecture. In reality, in a state without an income tax, getting rid of property taxes on biomedical equipment and manufacturers will hurt local school districts and local government services. And why single out one industry for tax breaks if it puts a heavier burden on other businesses and residents to pay for local schools and services? Vote 'No.'"

Background

Senate Bill 2289 (2023)

The state legislature passed Senate Bill 2289, the enabling legislation, during the regular legislative session. SB 2289 defined medical and biomedical property as "tangible property that is (A) stored, used, or consumed in the manufacturing or processing of medical or biomedical products by a medical or biomedical manufacturer; or (B) intended for use in the diagnosis, cure, mitigation, treatment, or prevention of a condition or disease or in medical or biomedical research." This included devices, therapeutics, pharmaceuticals, personal protective equipment, tools, implants, instruments, and apparatuses. The law took effect on January 1, 2024.

SB 2289 was passed in the Senate by a vote of 26-4 and in the House by a vote of 132-12 with five absent or not voting.

The Senate Finance Committee estimated that the net impact of the bill through the biennium ending August 31, 2025, would be a negative impact of $28.8 million, increasing to a negative impact of $41.1 million in fiscal year 2028.

Texas ad valorem property tax system

In 1968, Texas voters adopted Proposition 7, which provided for a gradual reduction in the state property tax and eventual abolishment after 1978, with exceptions for certain institutions of higher learning. In 1982, this exception for certain higher education institutions to levy state ad valorem property taxes was repealed with the passage of Proposition 1. As of 2023, only local taxing units, cities, counties, school districts, junior colleges, and special districts levy ad valorem taxes.

Referred measures on the Texas ballot

See also: List of Texas ballot measures

In Texas, a total of 281 ballot measures appeared on statewide ballots between 1985 and 2022. Two hundred forty-eight ballot measures were approved, and 33 ballot measures were defeated.

Texas statewide ballot measures, 1985-2022
Total number	Annual average	Annual minimum	Annual maximum	Approved		Defeated
				#	%	#	%
281	6.39	0	22	248	88.26	33	11.74

Texas ballot measures in odd-numbered years

Between 1995 and 2021, Texans decided on 175 statewide ballot measures appearing on odd-numbered year ballots. Voters approved 160 measures and defeated 15.

Path to the ballot

See also: Amending the Texas Constitution

To put a legislatively referred constitutional amendment before voters, a two-thirds (66.67%) vote is required in both the Texas State Senate and the Texas House of Representatives.

This amendment was introduced as Senate Joint Resolution 87 on March 10, 2023. On April 13, 2023, the state Senate passed SJR 87 by a vote of 26-4 with one absent. On May 17, the state House passed SJR 87 by a vote of 125-10 with 14 not voting and one vacancy.

Vote in the Texas State Senate April 13, 2023
Requirement: Two-thirds (66.67 percent) vote of all members in each chamber
Number of yes votes required: 21  a
	Yes	No	Not voting
Total	26	4	1
Total percent	83.9%	12.9%	3.2%
Democrat	12	0	0
Republican	14	4	1

Vote in the Texas House of Representatives May 17, 2023
Requirement: Two-thirds (66.67 percent) vote of all members in each chamber
Number of yes votes required: 100  a
	Yes	No	Not voting
Total	125	10	14
Total percent	83.9%	6.7%	9.4%
Democrat	57	0	7
Republican	68	10	7

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

2023 measures

• 2023 ballot measures
• Taxes on the ballot

Texas

• Texas ballot measures
• Texas ballot measure laws

News and analysis

• Ballot measure lawsuits
• Ballot measure readability
• Ballot measure polls

External links

• Texas Senate Joint Resolution 87