The proposed joint resolution seeks to amend the Texas Constitution to exempt all tangible personal property from ad valorem taxation, effective January 1, 2026. The amendment modifies Section 1 of Article VIII, stating that while all real property is subject to taxation unless exempted, tangible personal property will be exempt, with the exception of certain conditions outlined in a new subsection. Specifically, if an ad valorem tax on tangible personal property is pledged for debt repayment before January 1, 2026, tax authorities may continue to levy and collect that tax until the debt is discharged, ensuring that the obligations of the contract are not impaired.

Additionally, the resolution includes provisions for the assessment of real property owned by railroad companies and repeals several existing sections of Article VIII that are no longer applicable. The amendment will be presented to voters in a referendum scheduled for November 4, 2025, allowing the public to decide on the exemption of tangible personal property from ad valorem taxation. A temporary provision is also included, which states that the amendment will only apply to taxes imposed on or after January 1, 2026, and will expire on January 1, 2027.