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Texas Election 2025 • Tax Propositions Guide
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Welcome to Your Tax Education Journey!

November 4th, 2025 • Texas Election Day

| Duke Tax Education |

Welcome, ! 👋

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Introduction

Welcome to Election Day, !

🗳️ Today is November 4th, 2025 - Texas Election Day

You have the right to vote today and still get paid! Take advantage of this important opportunity.

What's on the Ballot?

17 Total Propositions
9 Tax-Related Items

Today we're focusing on the 9 tax-related propositions and how they can affect you and your family.

Why This Matters:

  • Your property taxes
  • Your investments
  • Your family's finances
  • Your community's future

Proposition 2: Capital Gains Tax Ban

Investment Protection

What's Being Voted On?

Official (SJR 18): Prohibits any state tax on capital gains (realized or unrealized) for individuals, families, estates, or trusts.

📖 In Plain English

Forever bans the state from taxing your investment profits—whether you sell stocks or just hold them.

How This Affects You, :

Protection

Texas currently has no capital gains tax—this locks it in permanently

Your Investments

Profits from stocks, crypto, or property sales stay tax-free at state level

Your Family

Estate transfers and gifts remain free from state taxation

Real-World Example:

If you bought stock for $10,000 and sold it for $50,000, your $40,000 profit would never be taxed by Texas—now or in the future.

Practice Question:

What does Proposition 2 do regarding capital gains?

Proposition 4: Revenue for Water Fund

Infrastructure

What's Being Voted On?

Official (HJR 7): Dedicates a portion of sales and use tax revenue to the Texas Water Fund to support water infrastructure, supply expansion and rural access.

📖 In Plain English

Automatically sends state sales tax dollars into a special water fund to build pipelines, reservoirs, and shore up water supplies across Texas.

How This Affects You, :

Water Security

Ensures reliable water supply for growing Texas communities

Infrastructure

Funds new pipelines, treatment plants, and reservoirs

Rural Access

Improves water access for underserved rural areas

Why It Matters:

Texas population is projected to double by 2050. This ensures we have enough water infrastructure to support growth without water shortages or rationing.

Practice Question:

Where does the funding for the Texas Water Fund come from in Proposition 4?

Propositions 5-11: Tax Exemptions Package

Tax Relief

These 7 propositions work together to provide targeted tax relief for different groups. Let's break down each one, :

Proposition 5 (HJR 99): Animal Feed Exemption

Exempts animal feed held for sale from property tax.

Plain English: Ranchers and farmers don't pay property tax on livestock feed inventory.
Who Benefits: Farmers, ranchers, feed stores → Lower costs for agriculture

Proposition 6 (HJR 4): Securities Transaction Protection

Blocks legislature from adding an occupation tax on securities transactions.

Plain English: Your stock trades and investments can't be hit with a state transaction tax.
Who Benefits: All investors and financial professionals

Proposition 7 (HJR 133): Veteran Spouse Protection

Lets surviving spouses of veterans who died from service-related conditions keep a homestead property tax exemption.

Plain English: If a veteran dies from service-related causes, their spouse keeps the property tax break on their home.
Who Benefits: Military families and surviving spouses

Proposition 8 (HJR 2): Death Tax Ban

Bans state-level "death taxes" (estate, inheritance, gift taxes).

Plain English: No state taxes when you inherit property or receive gifts from family.
Who Benefits: All families passing down property, assets, or wealth

Proposition 9 (HJR 1): Business Equipment Exemption

Exempts tangible property used for income production (e.g., equipment) from ad valorem taxes.

Plain English: Business equipment and machinery used to make money aren't taxed as property.
Who Benefits: Small businesses, manufacturers, entrepreneurs

Proposition 10 (SJR 84): Fire Damage Rebuilding

Creates a temporary tax exemption for rebuilt value when a home is entirely destroyed by fire.

Plain English: If your home burns down completely, you get a tax break on the rebuilt value for a period of time.
Who Benefits: Families rebuilding after devastating fires

Proposition 11 (SJR 85): Senior/Disabled Homestead Expansion

Expands the value exemption on elderly or disabled homeowners' homesteads for school district taxes.

Plain English: Bigger property tax breaks for seniors and disabled homeowners on school taxes.
Who Benefits: Elderly and disabled homeowners

Practice Question:

Which proposition helps surviving military spouses keep their property tax exemption?

Proposition 13: Homestead Exemption Increase

Property Tax Savings

What's Being Voted On?

Official (SJR 2): Raises the exemption for residence homesteads from $100,000 to $140,000 for property tax purposes at the school-district level.

📖 In Plain English

More of your home's value is shielded from school property taxes—leaving homeowners with lower tax bills.

How This Affects You, :

Lower Bills

You'll pay less in school property taxes every year

Protection

$40,000 more of your home's value is exempt from school taxes

All Homeowners

Every homestead owner in Texas benefits automatically

💰 Real Savings Calculator:

Current Exemption: $100,000
New Exemption: $140,000
Additional Savings: $40,000

If your home is worth $300,000, you now only pay school taxes on $160,000 instead of $200,000!

Real-World Example:

Before: $300,000 home - $100,000 exemption = $200,000 taxable value
After: $300,000 home - $140,000 exemption = $160,000 taxable value
Result: You save money on $40,000 less in taxable value!

Practice Question:

How much does Proposition 13 increase the homestead exemption by?

Great Job, ! Let's Recap

You've learned about all 9 tax-related propositions on today's ballot. Here's a quick summary:

Prop 2

Ban capital gains tax forever

Prop 4

Fund water infrastructure

Prop 5

Exempt animal feed from tax

Prop 6

Block securities transaction tax

Prop 7

Protect veteran spouse exemptions

Prop 8

Ban estate/gift taxes

Prop 9

Exempt business equipment

Prop 10

Fire rebuilding tax relief

Prop 11

Expand senior exemptions

Prop 13

Increase homestead exemption

Ready to Test Your Knowledge?

Let's see how much you've learned with a quick 5-question quiz. Don't worry—you've got this!

Final Quiz - Show What You Know!

Answer these 5 questions to test your understanding, . Take your time!

Estimated time: 3-5 minutes
Question 1 of 5

What does Proposition 2 permanently ban?

Question 2 of 5

Proposition 4 funds water infrastructure through which revenue source?

Question 3 of 5

Which proposition provides tax relief for surviving spouses of veterans?

Question 4 of 5

Proposition 13 increases the homestead exemption from $100,000 to what amount?

Question 5 of 5

Which proposition exempts business equipment from property taxes?