HJR4

Regular Session

Proposing a constitutional amendment prohibiting the enactment of a law imposing an occupation tax on certain entities that enter into transactions conveying securities or imposing a tax on certain securities transactions.

LowStandard timeline

Low Cost

Effective:2025-05-05

HJR4

Proposing a constitutional amendment prohibiting the enactment of a law imposing an occupation tax on certain entities that enter into transactions co...

Low Urgency

Heavily Contested

House Vote111 - 31

YEA

NAY

78% in favor142 voting

Senate Vote28 - 3

YEA

90% in favor31 voting

Total Opposition Votes

Cost Impact

Low

Effective

2025-05-05

Primary Author: Rep. Morgan Meyer

89th Texas Legislature

jdkey.com

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: May 5, 2025 (Resolution effective immediately for ballot placement).
Voter Ratification: November 4, 2025 (The amendment must be approved by voters to become law).
Compliance Deadline: None. This legislation restricts the government, not the business. No operational changes are required.
Agency Rulemaking: None. The Comptroller is prohibited from enforcing such taxes, requiring no new administrative code.

Immediate Action Plan

Monitor the Ballot: Confirm voter ratification on November 4, 2025, before factoring this protection into long-term financial modeling.
Review Crypto Classifications: If you operate a digital asset platform, consult counsel to determine if your entity fits the federal definitions in place as of Jan 1, 2025. If not, this tax ban may not apply to you.
Maintain Standard Tax Compliance: Ensure finance teams understand this is a specific ban on *transaction* taxes, not a general tax holiday. Continued compliance with the Texas Franchise Tax is mandatory.

Operational Changes Required

Contracts

No amendments are required for existing client or vendor agreements. However, for Site Selection or Headquarters Relocation contracts, this amendment (once ratified) serves as a "Stabilization Clause," mitigating the risk of future state-level transaction taxes.

Hiring/Training

No new certifications or training are required.

Reporting & Record-Keeping

No new forms or filings are generated.

CRITICAL: This amendment does not exempt financial firms from the Texas Franchise Tax (Margin Tax). You must continue to report and pay taxes based on general business activity. The prohibition applies strictly to taxes triggered by the *act* of trading securities or the *occupation* of operating an exchange.

Fees & Costs

No new fees. This legislation prevents the creation of future costs.

Strategic Ambiguities & Considerations

The "Static Date" Risk:

The amendment defines "Registered Securities Market Operator" and "Security" based on federal statutes (Exchange Act of 1934, Commodity Exchange Act) as they existed on January 1, 2025.

The Risk: If Congress or the SEC creates a *new* regulatory classification for digital assets, crypto-exchanges, or DeFi protocols *after* January 1, 2025, those entities may not fall under the specific definitions protected by this amendment.
Implication: Future asset classes defined by new federal law may remain vulnerable to state taxation because the Texas Constitution will reference the "old" 2025 definitions.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

Legislative Timeline

This bill's path through the Texas Legislature

TopicsResolutions Resolutions--constitutional Amendments Taxation Taxation--general Taxation--occupation Tax Financial Financial--general

Official Analysis

View HRO Analysis View All Bill Documents

House Authors

Rep. Morgan MeyerRepublican · Primary Author

Joint Authors

Coauthors (8)

Senate Sponsors

Sen. Tan ParkerRepublican · Primary Sponsor

Cosponsors (2)

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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More from Rep. Morgan Meyer

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Frequently Asked Questions

Common questions about HJR4

What does Texas HJR4 do?

HJR 4 proposes a constitutional amendment to permanently prohibit the Texas Legislature from enacting Financial Transaction Taxes (FTT) or occupation taxes on securities market operators. This measure is strategic, aiming to constitutionally lock in Texas's status as a tax-neutral jurisdiction for capital markets, specifically benefiting exchanges, broker-dealers, and clearing agencies. Implementation Timeline Effective Date: May 5, 2025 (Resolution effective immediately for ballot placement).

Who authored HJR4?

HJR4 was authored by Texas Representative Morgan Meyer during the Regular Session.

When was HJR4 signed into law?

HJR4 was signed into law by Governor Greg Abbott on May 5, 2025.

How urgent is compliance with HJR4?

The compliance urgency for HJR4 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of HJR4?

The cost impact of HJR4 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does HJR4 address?

HJR4 addresses topics including resolutions, resolutions--constitutional amendments, taxation, taxation--general and taxation--occupation tax.

Legislative data provided by LegiScanLast updated: November 25, 2025

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