The resolution proposes a constitutional amendment to the Texas Constitution that would prohibit the imposition of taxes on the realized or unrealized capital gains of individuals, families, estates, or trusts. This includes any taxes related to the sale or transfer of capital assets that would be payable by the seller or transferor. However, the amendment clarifies that it does not prevent the imposition of other types of taxes, such as ad valorem taxes on property, sales taxes on retail goods or services, and use taxes on the consumption of goods or services purchased at retail.

If approved, this amendment will be presented to voters in an election scheduled for November 4, 2025. The ballot will allow voters to express their support or opposition to the proposition, which aims to safeguard individuals and entities from capital gains taxation in Texas.