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Texas Proposition 2 (2025): S.J.R. 18
Texas constitutional amendment · voted on 2025-11-04 · Result: Passed
texasconstitutional-amendment
Official ballot language
The constitutional amendment prohibiting the imposition of a tax on the realized or unrealized capital gains of an individual, family, estate, or trust.
Plain summary
S.J.R. 18, 89th Legislature, Regular Session, 2025, proposes an amendment to the Texas Constitution prohibiting the legislature from taxing the realized or unrealized capital gains of an individual, family, estate, or trust. The prohibition would apply to a tax on the sale or transfer of a capital asset that is payable by the individual, family, estate, or trust selling or transferring the asset, regardless of who owned the asset. The proposed amendment provides that the prohibition would not prohibit an ad valorem tax on property or a sales or use tax on goods or services.
Texas Legislative Council, Analyses of Proposed Constitutional Amendments (Aug 2025), p. 17, quoted unchanged (nonpartisan). Read the source.
What a vote does
A “For” vote
Adds this amendment to the Texas Constitution: the constitutional amendment prohibiting the imposition of a tax on the realized or unrealized capital gains of an individual, family, estate, or trust.
A “Against” vote
The Texas Constitution is not changed by this proposition; current provisions stay as they are.
Ballot language as certified (Texas Legislative Council analysis). A constitutional amendment takes effect only if a majority of voters approve it.
What does this mean? (plain words)
Official text
The constitutional amendment prohibiting the imposition of a tax on the realized or unrealized capital gains of an individual, family, estate, or trust.
Source: Texas Legislative Council, Analyses of Proposed Constitutional Amendments (Aug 2025), p. 17
AI explanation – may be wrong, check the official text
What this measure would do
This measure proposes to change the Texas Constitution. If it passes, the Constitution will be amended to say that individuals, families, estates, and trusts cannot have their capital gains taxed. Capital gains are profits made from selling or transferring assets like stocks, real estate, or other investments.
Voting on this measure
If you vote "For" this measure, you are voting to add a new amendment to the Texas Constitution. This means that individuals, families, estates, and trusts will not be able to have their capital gains taxed. If you vote "Against", nothing in the Constitution will change. The current rules about taxes on capital gains will stay the same.
Words that may be confusing
* Realized or unrealized capital gains: This refers to profits made from selling or transferring assets, whether those profits are already received (realized) or still expected (unrealized).
* Ad valorem tax: This is a type of property tax based on the value of the property.
* Sales or use tax: These are taxes charged when goods or services are bought or used.
Written by a computer model (llama3.1:8b, run on our own server) on Tue Nov 3 from the official text and nonpartisan summary only. It is not a source and takes no side. If it differs from the official text, the official text is right.
The strongest published arguments
Arguments for (supporters)
The state constitution currently prohibits a personal income tax, but there is no explicit prohibition against a tax on capital gains. Therefore, without the amendment, a future legislature could potentially enact a tax on capital gains that is structured to avoid the income tax prohibition.
Source: Texas Legislative Council, Analyses of Proposed Constitutional Amendments (Aug 2025), p. 17
Texas has long been recognized for its pro-business environment. Capital gains taxes can discourage investments, slow economic growth, and reduce job creation.
Source: Texas Legislative Council, Analyses of Proposed Constitutional Amendments (Aug 2025), p. 17
States that impose a capital gains tax often see capital flight where investors and businesses relocate to jurisdictions with more favorable tax policies. To maintain Texas' status as an economic leader, it is critical to ensure long-term certainty in tax policy by explicitly prohibiting and eliminating any form of capital gains taxation.
Source: Texas Legislative Council, Analyses of Proposed Constitutional Amendments (Aug 2025), p. 17
Striving for limited government entails limiting the government's accessible funds.
Source: Texas Legislative Council, Analyses of Proposed Constitutional Amendments (Aug 2025), p. 17
Arguments against (opponents)
A constitutional prohibition limits the ability of future legislatures to decide whether to impose a capital gains tax during economic circumstances that current legislators cannot foresee. A capital gains tax would no longer be a potential source of revenue for the state without amending the constitution again.
Source: Texas Legislative Council, Analyses of Proposed Constitutional Amendments (Aug 2025), p. 17
The proposed amendment is unnecessary since there is currently no proposal in the legislature to institute a capital gains tax.
Source: Texas Legislative Council, Analyses of Proposed Constitutional Amendments (Aug 2025), p. 17
The proposed amendment could reduce tax revenue and encourage business entities to organize as business trusts to avoid paying franchise taxes. The current franchise tax on business trusts that sell assets for a gain could be considered a prohibited capital gains tax that could no longer be collected.
Source: Texas Legislative Council, Analyses of Proposed Constitutional Amendments (Aug 2025), p. 17
Summary of comments made in committee, floor debate, or the House Research Organization analysis, as published by the Texas Legislative Council. Shown in the order published, not ranked by us.
Alternatives
Needs sources: no published alternatives yet (for example a different bill, a law instead of an amendment, or keeping current law). We only show items backed by a published source. Suggest one.
Result
| For | 1,937,917 |
|---|---|
| Against | 1,026,718 |
| Percent for | 65.37% |
Source: Texas Secretary of State results as reported by Texas Policy Research (confirm at the SOS results site) · official canvass: Texas SOS results
Officials and money
Authors: Perry · Coauthors: Bettencourt, Birdwell, Creighton, Kolkhorst, Middleton, Schwertner · Sponsors in the other chamber: Capriglione, Metcalf
Texas legislators are not yet linked to official pages. Bill history and votes on Texas Legislature Online.
Money: Legislative Budget Board fiscal note No linked contracts or vendors yet.
Words on this page, explained (7)
- Ad valorem
- Latin for "according to value." An ad valorem tax is a percentage of what something is worth. Texas property taxes are ad valorem taxes: they are based on the appraised value of a home, land or business property. Florida property taxes are ad valorem taxes too.
- Capital gains
- The profit from selling something you own, such as stock or real estate, for more than you paid. A capital gains tax is a tax on that profit.
- Constitutional amendment
- A change to a constitution. In Texas the Legislature proposes an amendment with a joint resolution passed by two-thirds of the members of each chamber. It takes effect only if a majority of the people voting on it approve it. In Florida, an amendment needs at least 60% of the votes cast on it to pass.
- Franchise tax
- A Texas state tax on businesses for the privilege of doing business in Texas, based mainly on a business's margin. Businesses under a set revenue threshold owe no tax.
- Joint resolution
- In Texas, the type of measure the Legislature uses to propose a constitutional amendment (marked HJR or SJR). The governor does not sign or veto it; the voters decide. In Congress a joint resolution can also be used like a bill. In Florida, a joint resolution passed by three-fifths of the members of each chamber puts a constitutional amendment on the ballot.
- Legislature
- The elected body that makes laws. In Texas it has a House of Representatives (150 members) and a Senate (31 members). In Florida it has a House of Representatives (120 members) and a Senate (40 members).
- Proposition
- The name for a measure on a Texas ballot, numbered Proposition 1, 2, and so on. A "For" vote supports the measure; an "Against" vote opposes it.
Plain meanings written from linked sources. All words.
Sources
- Texas Legislative Council, Analyses of Proposed Constitutional Amendments (Aug 2025), p. 17
- Texas Legislature Online: S.J.R. 18
- Data: Texas Legislative Council, Analyses of Proposed Constitutional Amendments (Aug 2025), p. 17 <https://www.tlc.texas.gov/docs/amendments/analyses25.pdf>; Texas Legislature Online bill history <https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SJR18>; fetched 2026-11-03T04:00:01Z
- Ballotpedia (link only)
Record st-tx-2025-prop-02 · catalog st-tx-sos-ballot-measures-2025 · updated 2026-11-02 by builder v002