The word “TAXES” is seen on the facade of the Internal Revenue Service building in Washington on Tuesday, July 7, 2020. (Photo By Bill Clark/CQ-Roll Call, Inc via Getty Images)
Texas voters approved Proposition 9 on Tuesday which allows businesses to exempt up to $125,000 of inventory or equipment from taxes.
The tax break would prevent the business from being taxed by school districts, cities, counties or any other taxing entity.
HJR 1 allows the legislature to exempt up to $125,000 of the market value of income-producing personal property from property taxes.
Currently, businesses are exempt from paying taxes on that property if it is worth $2,500 or less.
Ballot language:
“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.”
Under the amendment, the state would be responsible for lost tax revenue to school districts.
The Source: Information in this article comes from the Texas Secretary of State’s Office. Information on the resolution comes from the Texas Legislature.
