| Vote Recommendation | Economic Freedom | Property Rights | Personal Responsibility | Limited Government | Individual Liberty |
|---|---|---|---|---|---|
| No | Negative | Neutral | Neutral | Negative | Neutral |
Relating to the exemption from ad valorem taxation of precious
metal held in a precious metal depository located in this state.
According to the Legislative Budget Board, as a result of this bill taxable property values could be reduced and the
related costs to the Foundation School Fund could be increased through the operation of the
school finance formulas.
HB 2859 would exempt precious metals held for income-producing purposes from property taxation if they are stored in a qualifying precious metal depository in this state. This bill is enabling legislation which would go into effect if the voters approve the constitutional amendment proposed by HJR 95.
Texas Action opposes HB 2859 for violating the principles of limited government and free markets. Tax policy should not be used to incentivize particular economic behavior; in this case storing precious metals held for income-producing purposes in a qualifying precious metal depository in this state.