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Texas Proposition 6 (2025): H.J.R. 4

Texas constitutional amendment · voted on 2025-11-04 · Result: Passed

texasconstitutional-amendment

What does this mean?

Official ballot language

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.

Plain summary

H.J.R. 4, 89th Legislature, Regular Session, 2025, proposes an amendment to the Texas Constitution prohibiting the legislature from imposing an occupation tax on securities market operators, such as stock exchanges and stock brokers, regulated by the United States Securities and Exchange Commission or the United States Commodity Futures Trading Commission. The proposed amendment would also prohibit the legislature from imposing a tax on securities transactions conducted by those securities market operators. Additionally, the proposed amendment clarifies that the amendment's prohibitions are not intended to limit the state's authority to impose certain existing taxes and fees, such as severance taxes or general sales taxes, or to change the rate of a tax in existence on January 1, 2026. The proposed amendment, along with other legislation enacted by the 89th Texas Legislature, relates to the possible establishment of one or more national stock exchanges in Texas by prohibiting certain taxes that could otherwise apply to a stock exchange located in Texas.

Texas Legislative Council, Analyses of Proposed Constitutional Amendments (Aug 2025), p. 41, 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 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.

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 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.

Source: Texas Legislative Council, Analyses of Proposed Constitutional Amendments (Aug 2025), p. 41

AI explanation – may be wrong, check the official text

What This Measure Would Do

This measure would change the Texas Constitution to prevent the state legislature from creating laws that impose an occupation tax or a tax on certain securities transactions. An occupation tax is a type of tax that some businesses pay based on their activities, and securities transactions refer to buying and selling stocks, bonds, and other investments.

What a 'For' Vote Means and What a 'Against' Vote Means

If you vote "For" this measure, it would add the proposed change to the Texas Constitution. This means that the state legislature would not be able to create laws that impose an occupation tax or a tax on certain securities transactions. If you vote "Against", nothing in the Texas Constitution would change, and current provisions would remain as they are.

Words That May Be Confusing

The term "securities market operators" refers to businesses like stock exchanges and stock brokers who help people buy and sell stocks, bonds, and other investments. These businesses are regulated by federal agencies such as the Securities and Exchange Commission or the Commodity Futures Trading Commission. The measure also mentions that it would not affect certain existing taxes, such as severance taxes or general sales taxes, or change the rate of a tax in existence on January 1, 2026. However, it is unclear what this means exactly.

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)

As the Texas Stock Exchange is in the process of being established and other national stock exchanges consider moving to the state, it is important to prevent the imposition of taxes that would have a detrimental effect on the Texas economy. Imposing a financial transaction tax could negatively affect the growing Texas economy by deterring investment in financial services sector innovation.

Source: Texas Legislative Council, Analyses of Proposed Constitutional Amendments (Aug 2025), p. 41

Taxes on financial transactions raise transaction costs, which can lead to decreased trade volume, lower asset prices, less efficient markets, increases in the cost of capital, and increases in the cost of consumer goods.

Source: Texas Legislative Council, Analyses of Proposed Constitutional Amendments (Aug 2025), p. 41

The proposed amendment would benefit Texas taxpayers, assure investors that Texas is committed to providing a low‑tax, business-friendly environment, and encourage businesses to locate in Texas.

Source: Texas Legislative Council, Analyses of Proposed Constitutional Amendments (Aug 2025), p. 41

Many Texans rely on marginal returns on their investments, such as 401(k) plans, IRAs, and pensions, to support them in retirement. Any additional tax on financial transactions, whether on transferring securities or processing trades, would reduce these returns and make it more difficult for Texans to save for the future.

Source: Texas Legislative Council, Analyses of Proposed Constitutional Amendments (Aug 2025), p. 41

The proposed amendment provides certainty for investors, including retirees, about their ability to trade securities freely in Texas without undue financial burdens.

Source: Texas Legislative Council, Analyses of Proposed Constitutional Amendments (Aug 2025), p. 41

Texas has historically been able to fund critical services without imposing burdensome new taxes.

Source: Texas Legislative Council, Analyses of Proposed Constitutional Amendments (Aug 2025), p. 41

Arguments against (opponents)

The proposed amendment would make it harder for future legislatures to make tax policy by prohibiting the types of taxes covered by the amendment.

Source: Texas Legislative Council, Analyses of Proposed Constitutional Amendments (Aug 2025), p. 41

The state may experience an economic downturn in the future and could benefit from having a securities transaction or occupation tax to raise revenues at that time.

Source: Texas Legislative Council, Analyses of Proposed Constitutional Amendments (Aug 2025), p. 41

Banning possible revenue streams before they exist means that the bulk of local revenue will need to continue coming from property taxes, which burden working class individuals.

Source: Texas Legislative Council, Analyses of Proposed Constitutional Amendments (Aug 2025), p. 41

The proposed amendment would primarily benefit the wealthy and allow them to avoid paying their fair share in taxes while Texas families struggle with increased taxes and prices.

Source: Texas Legislative Council, Analyses of Proposed Constitutional Amendments (Aug 2025), p. 41

Texas already has the seventh-most regressive tax system in the country, with the bottom 20 percent of earners paying a greater share of their income in taxes than the top one percent. The proposed amendment would worsen this disparity and signal to working Texans that they are not the state's priority.

Source: Texas Legislative Council, Analyses of Proposed Constitutional Amendments (Aug 2025), p. 41

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

For1,588,054
Against1,306,101
Percent for54.87%

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: Meyer, Button, Vasut, Moody, Anchía · Coauthors: Ashby, Bonnen, Harris, Hull, Landgraf, Metcalf, Muñoz, Plesa · Sponsors in the other chamber: Parker

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 (6)
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.
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).
Property tax
A tax on land, buildings and some business property, based on its value. In Texas it is set and collected by local governments (cities, counties, school districts and special districts), not by the state.
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.
Securities
Financial investments that can be bought and sold, such as stocks and bonds.

Plain meanings written from linked sources. All words.

Sources

Record st-tx-2025-prop-06 · catalog st-tx-sos-ballot-measures-2025 · updated 2026-11-02 by builder v002