86(R) - 2019
House Ways & Means
House Ways & Means
Constitutional Amendments

Vote Recommendation

  • Negative
  • Neutral
  • Neutral
  • Negative
  • Neutral


Dan Huberty

Bill Caption

Proposing a constitutional amendment to provide property tax relief by reducing school district maintenance and operations ad valorem tax rates and increasing the state sales and use tax rates.

Fiscal Notes

Estimated Two-year Net Impact to General Revenue Related Funds for HJR3, Committee Report 1st House, Substituted: a negative impact of ($177,289) through the biennium ending August 31, 2021.

Bill Analysis

HJR 3 would propose amending Article VIII of the Texas Constitution to raise the state sales tax to 7.25% (from 6.25%). The amendment would additionally provide for using excess sales and use tax money to provide property tax relief by reducing school district property tax rates. The amendment would need to be approved by voters in a November 2019 election in order to go into effect. 

Vote Recommendation Notes

Texas Action opposes HJR 3 (and its enabling legislation HB 4621) for violating the principles of limited government and free markets. We are skeptical of the idea of a tax swap to provide for property tax relief as there is no guarantee that such a measure will actually result in permanent and meaningful property tax reduction. Texas has a spending problem, not a revenue problem. Property tax relief, which is urgently necessary, should not come at the expense of increasing sales taxes.