What is Proposition 2, Bill H.J.R. 1?
Proposition 9, stemming from H.J.R. 1, proposes a constitutional amendment that would exempt up to $250,000 of tangible personal property used for income production from property taxes. In simpler terms, it’s a tax break on business-related equipment and inventory.
Who Benefits from this Bill?
Though framed as property tax relief for small businesses, the reality is far different. There’s no cap on business size or income level, so the exemption can be used by corporations and the ultra-wealthy, not just mom-and-pop shops.
Even worse, this amendment creates a potential loophole for wealthy landowners. Without firm restrictions, someone with a large estate could claim they operate a “home business” and use that status to write off high-value tangible assets that do not contribute to the economy, but simply to reduce their tax liability. In other words, this bill risks becoming a tax shelter for the rich under the guise of helping small business.
Who Pays the Price?
Local governments, especially at the city and county level, depend on property taxes to fund critical public services like:
- Public schools
- Libraries
- Emergency response services
- Local road and infrastructure maintenance
By cutting off a major source of local tax revenue, this bill could undermine community services while providing a windfall to those who need it least.
Bottom Line
Proposition 9 is not small business relief. It’s a broad and unregulated tax break that opens the door for tax avoidance by the wealthy, while shrinking resources for the public services Texans all rely on. Texans deserve a tax system that’s fair, transparent, and built for working people, not loopholes for the wealthy to build greater inequality.
Mechanical engineering graduate from the University of Houston, born and raised in Texas, shaped by hard work, and like many of you, deeply frustrated with the state of our politics. My background in engineering trained me to solve complex problems, think critically, and pursue solutions rooted in logic and evidence, skills I now apply to cut through political noise and uncover what truly serves the people of Texas.