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. Specifically, it seeks to prevent any taxation related to the sale or transfer of capital assets by these entities. However, the amendment clarifies that it does not restrict the imposition of other types of taxes, such as ad valorem taxes on property, sales taxes on retail goods or services, or use taxes on the consumption of goods or services purchased at retail.

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