Texas Proposition 9, Authorize $125,000 Tax Exemption for Tangible Property Used for Income Production Amendment (2025)

Texas Proposition 9
Election date November 4, 2025
Topic Property tax exemptions
Status Approved
Type Legislatively referred constitutional amendment	Origin State legislature

Texas Proposition 9, the Authorize Tax Exemption for Tangible Property Used for Income Production Amendment, was on the ballot in Texas as a legislatively referred constitutional amendment on November 4, 2025. It was approved.

A "yes" vote supported amending the state constitution to authorize the state legislature to exempt $125,000 of the market value of personal tangible property used for income production from taxes.

A "no" vote opposed amending the state constitution to authorize the state legislature to exempt $125,000 of the market value of personal tangible property used for income production from taxes.

Election results

See also: 2025 ballot measure election results

Texas Proposition 9
Result		Votes	Percentage
Yes		1,896,300	65.04%
No		1,019,501	34.96%

Results are officially certified.

Source

Overview

How did Proposition 9 change the tax exemption on property used for income production?

See also: Text of measure

At the time of the election, the Texas Constitution authorized the Texas State Legislature to exempt tangible personal property used for income production if it has a taxable value of less than the minimum amount needed to cover the costs of administering taxes on the property, which was about $2,500. Proposition 9 amended the constitution to authorize the state legislature to exempt from ad valorem taxation $125,000 of the market value of tangible personal property used for the production of income.

The state legislature also passed the implementing legislation for Proposition 9, House Bill 9 (HB 9), during the regular session. It took effect on January 1, 2026. To read more about HB9, click here.

When did Texas voters first adopt this property tax exemption?

See also: Texas Proposition 12 (1995)

The original property tax exemption for tangible property used for income production was added to the Texas Constitution in 1995 with the passage of Proposition 12. It was approved with 70% of the vote. The subsection has not been amended since.

Who supported and opposed Proposition 9?

See also: Support and Opposition

Americans for Prosperity, Huffines Liberty Foundation, Texas Apartment Association, Texas Association of Manufacturers, Texas Oil & Gas Association, Texas Policy Research, and Texas Restaurant Association supported Proposition 9. Texas Policy Research said, "By reducing taxes on productive assets, this amendment promotes free enterprise, supports private property rights, and aligns with limited government principles. It provides targeted relief to small businesses and entrepreneurs, encouraging investment and job creation without imposing direct costs on the state."

Green Party of Texas, Harris County Commissioners Court, and Travis County Commissioners Court opposed Proposition 9. The Green Party of Texas said, "Green Party of Texas: "Reaganomics has never worked. This amendment would give tax breaks that would benefit big businesses the most and would result in the state nearly $200 million in revenue according to estimates by the Legislative Budget Board. Very few (if any) of these funds will 'trickle down' to the community and would further imperil needed funding for school districts."

Text of measure

Ballot title

The ballot title was as follows:

“

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.

”

Constitutional changes

See also: Article 8, Texas Constitution

The measure amended section 1(g) of Article 8 of the state constitution. The following underlined text was added, and struck-through text was deleted:

Section 1

(g) The Legislature by general law may exempt from ad valorem taxation $125,000 of the market value of tangible personal property that is held or used for the production of income and has a taxable value of less than the minimum amount sufficient to recover the costs of the administration of the taxes on the property, as determined by or under the general law granting the exemption.

Full text

The full text is available here.

Support

Ballotpedia did not locate a campaign in support of the ballot measure.

Supporters

Political Parties

• Collin County Democratic Party
• Libertarian Party of Texas

Organizations

• Americans for Prosperity
• Huffines Liberty Foundation
• National Federation of Independent Business - Texas
• Texans for Fiscal Responsibility
• Texas Apartment Association
• Texas Association of Business
• Texas Association of Manufacturers
• Texas Oil & Gas Association - TXOGA PAC
• Texas Policy Research
• Texas Realtors
• Texas Restaurant Association
• True Texas Project

Arguments

• Texas Policy Research: "By reducing taxes on productive assets, this amendment promotes free enterprise, supports private property rights, and aligns with limited government principles. It provides targeted relief to small businesses and entrepreneurs, encouraging investment and job creation without imposing direct costs on the state."
• Glenn Hamer, president and CEO of Texas Association of Business: "If passed, Proposition 9 would help Texas small businesses see major savings on taxes each year, allowing them to reinvest and scale their operations to reach more customers and create new jobs. ... Most Texans familiar with our small-government, light-regulatory, pro-business environment would be surprised to learn that Texas is one of only 11 states with an ‘inventory tax,’ adding an additional cost burden for small business owners who are currently forced to pay taxes on the value of their inventory of products for sale, their personal property, and other assets used to generate income for their operations."

Opposition

Ballotpedia did not locate a campaign in opposition to the ballot measure.

Opponents

Officials

• Harris County Commissioners Court
• Travis County Commissioners Court

Political Parties

• Green Party of Texas

Arguments

• Green Party of Texas: "Reaganomics has never worked. This amendment would give tax breaks that would benefit big businesses the most and would result in the state nearly $200 million in revenue according to estimates by the Legislative Budget Board. Very few (if any) of these funds will 'trickle down' to the community and would further imperil needed funding for school districts."

Campaign finance

See also: Campaign finance requirements for Texas ballot measures

Ballotpedia did not identify any committees registered to support or oppose Proposition 9. 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: 2025 ballot measure media endorsements

Support

The following media editorial boards published an editorial supporting the ballot measure:

• Dallas Morning News Editorial Board: "For. This amendment would deliver tax relief to businesses by raising the amount of inventory and equipment exempt from city, county and school district taxes."
• Fort Worth Star-Telegram Editorial Board: "Proposition 9: This amendment would prohibit value-based taxation of personal items used for business purposes. It’s a worthy protection for small businesses. Recommendation: FOR."
• San Antonio Express-News Editorial Board: "While this exemption would be available to all businesses, it would be most beneficial for small businesses. ... That being said, this turns on being equitable, as it’s notable that Texas is one of only 11 states that tax businesses’ inventories. For."

Opposition

The following media editorial boards published an editorial opposing the ballot measure:

• Austin American-Statesman Editorial Board: "Texas already ranks near the bottom in per-student funding, and the state has repeatedly failed to cover its share of education costs. Until lawmakers fix that imbalance, the state shouldn’t pursue tax breaks that exacerbate the problem. We recommend voting against Proposition 9."
• Houston Chronicle Editorial Board: "The benefits of this tax break on business inventory and equipment isn't worth the lost tax revenue."
• The Austin Chronicle Editorial Board: "We’re reluctant to vote against anything bringing relief to small businesses, but we fear this simply shifts the tax burden elsewhere."

Background

House Bill 9 (2025)

House Bill 9, the implementing legislation for Proposition 9, was passed during the 2025 legislative session. It took effect on January 1, 2026. HB 9 authorized the $125,000 property exemption for tangible personal property used for income production in the state tax code. It repealed the existing exemption of less than $2,500 in taxable value. The exemption could be claimed in each location in a taxing unit where the property is held or used. HB 9 also required all taxable property located in separate areas but within the same taxing jurisdiction to be combined to determine the total taxable value. A person who owns personal tangible property for the production of income would be entitled to the exemption regardless of whether the property is held at a leased location within the taxing jurisdiction. The bill also required a person to render tangible personal property owned or held for the production of income if the total market value of the property is greater than the exempted amount.

HB 9 passed in the state House by a vote of 110-15, with 25 not voting or absent. It passed in the state Senate by a vote of 31-0.

Texas Proposition 12 (1995)

See also: Texas Proposition 12, Mineral Interest and Property Tax Exemptions Amendment (1995)

The original property tax exemption for tangible property used for income production was added to the Texas Constitution in 1995. Proposition 12 was approved with 70% of the vote. It added subsections (g) and (h) to the constitution, which authorized property tax exemptions for property used for income production and mineral interest if its taxable value was less than the minimum amount needed to cover the tax administration costs of the property.

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 2025, only local taxing units, cities, counties, school districts, junior colleges, and special districts levy ad valorem taxes.

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 1 (2025)

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

• February 27, 2025: House Joint Resolution 1 was filed.
• April 2, 2025: The state House passed HJR 1 by a vote of 132-13, with five absent or not voting.
• May 14, 2025: The state Senate passed an amended version of HJR 1 by a vote of 31-0.
• May 19, 2025: The state House concurred with the Senate version by a vote of 112-13, with 25 absent or not voting.

Partisan Direction Index = +8.7% (Bipartisan)

Democratic Support

86.2%

Republican Support

94.9%

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

 Texas State Senate

Voted on May 14, 2025

Votes Required to Pass: 21
	Yes	No	NV
Total	31	0	0
Total %	100.0%	0.0%	0.0%
Democratic (D)	11	0	0
Republican (R)	20	0	0

Texas House of Representatives

Voted on May 19, 2025

Votes Required to Pass: 100
	Yes	No	NV
Total	112	13	25
Total %	74.7%	8.7%	16.6%
Democratic (D)	39	8	15
Republican (R)	73	5	10

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. Anyone in line when the 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. An individual may also not be a convicted felon whose sentence, including probation or parole, is not complete, or declared mentally incapacitated by a court.

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

See also: Automatic voter 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

See also: Same-day voter 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. State law does not specify a length of time for which you must have been a resident to be eligible.

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 or a resident of the county in which the voter is registered to vote, the secretary shall send notice of the determination to the voter registrar of the counties considered appropriate by the secretary.

”

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 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. Eight states — Alabama, Arizona, Kansas, Louisiana, New Hampshire, South Dakota, Utah, and Wyoming — have laws requiring individuals provide proof of citizenship at the time of voter registration, whether in effect or not. Two states, Georgia and Mississippi, require a person provide proof of citizenship if their citizenship status cannot be verified by other means. One state, Ohio, requires proof of citizenship only when registering to vote at a Bureau of Motor Vehicles facility. 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 IDs was current as of December 2025. 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) With the exception of the U.S. Citizenship Certificate, which does not expire, for voters aged 18-69, the acceptable form of photo identification may be expired no more than four years before being presented for voter qualification at the polling place. For voters aged 70 or older, the acceptable form of photo identification may be expired for any length of time if the identification is otherwise valid.

”

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 "may apply with the county voter registrar for a permanent exemption by presenting an acceptable photo identification or following the Reasonable Impediment Declaration procedure in the county."
• Voters who have a religious objection to being photographed and voters affected by a natural disaster declarated by the governor or president of the United States may "vote a provisional ballot, appear at the voter registrar’s office within six (6) calendar days after election day, and sign an affidavit swearing to the religious objection or natural disaster, in order for the voter’s ballot to be counted."

To view Texas law pertaining to voter identification, click here.

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
• Tax exemptions 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 1

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