Texas Proposition 3, Prohibit Taxes on Wealth or Net Worth Amendment (2023)

Texas Proposition 3
Election date November 7, 2023
Topic Taxes
Status a Approved
Type Constitutional amendment	Origin State legislature

Texas Proposition 3, the Prohibit Taxes on Wealth or Net Worth Amendment, was on the ballot in Texas as a legislatively referred constitutional amendment on November 7, 2023.The ballot measure was approved.

A "yes" vote supported amending the Texas Constitution to prohibit the Legislature from enacting a wealth or net worth tax in the future.

A "no" vote opposed amending the Texas Constitution to prohibit the Legislature from enacting a wealth or net worth tax in the future.

Election results

Texas Proposition 3
Result		Votes	Percentage
Yes		1,712,458	67.89%
No		809,815	32.11%

Results are officially certified.

Source

Overview

What did Proposition 3 do?

See also: Text of measure

Proposition 3 added language to the Texas Constitution to prohibit the state legislature from imposing a tax based on the wealth or net worth of an individual or family. As of 2023, no state had adopted a wealth tax. In 2019, Texans approved Proposition 4 to prohibit the state legislature from adopting a state income tax.

What is the history of state personal income tax in Texas?

See also: Related Texas ballot measures

As of 2023, Texas was one of eight states without a personal income tax. In 2019, Texans approved Proposition 4 with 74% of the vote to prohibit the state from levying an income tax on individuals to the Texas Constitution, which requires a two-thirds legislative vote and a statewide referendum to amend. Before Proposition 4, the state constitution required the state legislature to put legislation enacting an income tax before voters as a statewide referendum, which voters could approve or reject. Placing a referendum before voters required a simple majority vote (50%+1) in each legislative chamber.

Who supported and opposed the amendment?

State Rep. Cole Hefner (R-5) was the primary sponsor of the amendment. All Republican legislators voted in favor of the amendment.

Every Texan and Texas American Federation of Teachers registered in opposition to the amendment.

Text of measure

Ballot title

The ballot title was as follows:

“

The constitutional amendment prohibiting the imposition of an individual wealth or net worth tax, including a tax on the difference between the assets and liabilities of an individual or family.

”

Constitutional changes

See also: Article 8, Texas Constitution

The ballot measure added a Section 25 to Article 8 of the Texas Constitution. The following underlined text was added:

Sec. 25. The legislature may not impose a tax based on the wealth or net worth of an individual or family, including a tax based on the difference between the assets and liabilities of an individual or family.

Readability score

See also: Ballot measure readability scores, 2023

Using the Flesch-Kincaid Grade Level (FKGL) and Flesch Reading Ease (FRE) formulas, Ballotpedia scored the readability of the ballot title for this measure. Readability scores are designed to indicate the reading difficulty of text. The Flesch-Kincaid formulas account for the number of words, syllables, and sentences in a text; they do not account for the difficulty of the ideas in the text. The state legislature wrote the ballot language for this measure.

The FKGL for the ballot title is grade level 21, and the FRE is 2. The word count for the ballot title is 30.

Support

Ballotpedia did not locate a campaign in support of the ballot measure.

Supporters

Officials

• State Rep. Cole Hefner (R)

Organizations

• Texans for Fiscal Responsibility
• Texas Eagle Forum
• True Texas Project

Arguments

You can share campaign information or arguments, along with source links for this information, at editor@ballotpedia.org

Opposition

Opponents

Organizations

• Every Texan
• Texas American Federation of Teachers

Arguments

You can share campaign information or arguments, along with source links for this information, at editor@ballotpedia.org

Campaign finance

See also: Campaign finance requirements for Texas ballot measures

If you are aware of a committee registered to support or oppose this amendment, please email editor@ballotpedia.org.

	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
Support	$0.00	$0.00	$0.00	$0.00	$0.00
Oppose	$0.00	$0.00	$0.00	$0.00	$0.00

Media editorials

See also: 2023 ballot measure media endorsements

Ballotpedia lists the positions of media editorial boards that support or oppose ballot measures. This does not include opinion pieces from individuals or groups that do not represent the official position of a newspaper or media outlet. Ballotpedia includes editorials from newspapers and outlets based on circulation and readership, political coverage within a state, and length of publication. You can share media editorial board endorsements with us at editor@ballotpedia.org.

Support

• Fort Worth Star-Telegram Editorial Board: "Texas could not impose a wealth tax if this proposition passes. For economic and logistical reasons, such a tax is a terrible idea that should never be contemplated. Recommendation: For."
• The Dallas Morning News Editorial Board: "RECOMMENDATION: Yes. This constitutional change amounts to an affirmation of the state’s long-standing support of economic self-determination. A similar amendment to the Texas Constitution prohibited an individual state income tax, and voter approval of Proposition 3 this year would constitutionally prohibit a tax based on the wealth of an individual or family."

Opposition

• Houston Chronicle Editorial Board: "It seems Texas' proposed amendment is mostly just an opportunity for voters to signal to the state’s wealthy elite – Musk among them – that your money is safe here and will be for generations to come. The amendment also doubles as a welcome mat for any other wealthy tycoons who want to shift their assets or business interests to greener pastures in the Lone Star State. Indeed, Texas already is a haven for the rich, with the fourth-highest population of billionaires in the nation, with a combined net worth of roughly $661 billion. Yet enshrining a tax policy ban in the Constitution strikes us as shortsighted. Who’s to say what Texas’ economic outlook will be 30 years from now? It would be foolish to take it off the table entirely as new technologies, such as artificial intelligence, could further concentrate wealth in the hands of a tiny few."
• San Antonio Express-News Editorial Board: "Proposition 3: Voters should reject this proposition, which would serve the ultra-rich. It would prohibit the Legislature from instituting a wealth tax. No such tax is on the table. Plus, this would limit a possible revenue option in the future. Our view: Against."
• The Austin Chronicle Editorial Board: "Blocking a Net Worth Tax: No. Republican legislators would like to amend the Texas Constitution to prohibit a hypothetical wealth tax, or "net worth" tax, which shifts tax burden to wealthier Texans; they argue that it penalizes business owners and people who may have significant assets but low cash flow. The Legislature isn't currently considering a net worth tax, but this would eliminate the option of ever doing so."
• Austin American-Statesman Editorial Board: "Why we need an amendment to take a tax that doesn't exist off the table is unexplained. Keeping the option of a wealth tax open is a necessity, should state lawmakers need to explore such a tax to fund needs in the future. Vote 'No.'"

Background

Related Texas ballot measures

Texas Proposition 4 (2019)

See also: Texas Proposition 4, Prohibit State Income Tax on Individuals Amendment (2019)

In 2019, Texans approved Proposition 4 with 74% of the vote to prohibit the state from levying an income tax on individuals to the Texas Constitution, which requires a two-thirds legislative vote and a statewide referendum to amend. Before Proposition 4, the state constitution required the state legislature to put legislation enacting an income tax before voters as a statewide referendum, which voters could approve or reject. Placing a referendum before voters required a simple majority vote (50%+1) in each legislative chamber. Texas had never levied a tax on personal income, as of 2023.

Texas Proposition 4 (1993)

See also: Texas Income Tax, Proposition 4 (1993)

In 1993, Texas voters approved Proposition 4, which prohibited the state from levying a tax on personal income without voter approval. It passed with 69% of the vote. Under Proposition 4, the state legislature could refer a voter referendum for an income tax through a simple majority vote in each legislative chamber. The ballot measure also required that revenue from an income tax be dedicated to education and limiting local school tax rates.

States and personal income taxes

As of 2023, Texas was one of eight states without a personal income tax. Texas had never levied a tax on personal income. Along with Texas, Alaska, Florida, Nevada, South Dakota, Tennessee, Washington, and Wyoming did not have personal income taxes. The other 42 states collected an income tax in addition to the federal income tax.

The first state to enact a personal income tax was Wisconsin in 1911. Hawaii enacted an income tax in 1901, which was before Wisconsin, but Hawaii was not a state until 1959. The most recent state to enact a personal income tax was New Jersey in 1976. The federal government enacted a federal tax on personal income in 1913.

No state had adopted a wealth tax as of 2023.

Referred measures on the Texas ballot

See also: List of Texas ballot measures

In Texas, a total of 281 ballot measures appeared on statewide ballots between 1985 and 2022. Two hundred forty-eight ballot measures were approved, and 33 ballot measures were defeated.

Texas statewide ballot measures, 1985-2022
Total number	Annual average	Annual minimum	Annual maximum	Approved		Defeated
				#	%	#	%
281	6.39	0	22	248	88.26	33	11.74

Texas ballot measures in odd-numbered years

Between 1995 and 2021, Texans decided on 175 statewide ballot measures appearing on odd-numbered year ballots. Voters approved 160 measures and defeated 15.

Path to the ballot

See also: Amending the Texas Constitution

To put a legislatively referred constitutional amendment before voters, a two-thirds (66.67%) vote is required in both the Texas State Senate and the Texas House of Representatives.

This amendment was introduced as House Joint Resolution 132 on March 13, 2023. On May 2, 2023, the state House passed HJR 132 by a vote of 101-45 with four not voting. On May 19, the state Senate passed HJR 132 by a vote of 22-9.

Vote in the Texas House of Representatives May 2, 2023
Requirement: Two-thirds (66.67 percent) vote of all members in each chamber
Number of yes votes required: 100  a
	Yes	No	Not voting
Total	101	45	4
Total percent	67.3%	30.0%	2.7%
Democrat	16	45	3
Republican	85	0	1

Vote in the Texas State Senate May 19, 2023
Requirement: Two-thirds (66.67 percent) vote of all members in each chamber
Number of yes votes required: 21  a
	Yes	No	Not voting
Total	22	9	0
Total percent	71.0%	29.0%	0.0%
Democrat	3	9	0
Republican	19	0	0

How to cast a vote

See also: Voting in Texas

Click "Show" to learn more about voter registration, identification requirements, and poll times in Texas.

How to cast a vote in Texas

Poll times In Texas, all polling places are open from 7 a.m. to 7 p.m. Central Time. An individual who is in line at the time polls close must be allowed to vote. Texas is divided between Central and Mountain time zones. Registration Check your voter registration status here. To register to vote in Texas, an applicant must be a United States citizen, a resident of the county in which he or she is registering, and at least 17 years and 10 months old. The deadline to register to vote is 30 days before the election. Prospective voters can request a postage-paid voter registration form online or complete the form online and return it to the county voter registrar. Applications are also available at a variety of locations including the county voter registrar’s office, the secretary of state’s office, libraries, and high schools. Voter registration certificates are mailed to newly registered voters. Automatic registration Texas does not practice automatic voter registration. Online registration See also: Online voter registration Texas does not permit online voter registration. Same-day registration Texas does not allow same-day voter registration. Residency requirements Prospective voters must reside in the county in which they are registering to vote. Verification of citizenship See also: Laws permitting noncitizens to vote in the United States Texas does not require proof of citizenship for voter registration. Section 18.068 of the Texas Election Code says the following: “ The secretary of state shall quarterly compare the information received under Section 16.001 of this code and Section 62.113, Government Code, to the statewide computerized voter registration list. If the secretary determines that a voter on the registration list is deceased or has been excused or disqualified from jury service because the voter is not a citizen, the secretary shall send notice of the determination to the voter registrar of the counties considered appropriate by the secretary. ” —Section 18.068, Texas Election Code In January 2019, the Texas secretary of state’s office announced that it would be providing local election officials with a list of registered voters who obtained driver’s licenses or IDs with documentation such as work visas or green cards. Counties would then be able to require voters on the list to provide proof of citizenship within 30 days. The review was halted by a federal judge in February 2019, and Secretary of State David Whitley rescinded the advisory in April. A news release from Whitley’s office stated that “... going forward, the Texas Secretary of State's office will send to county voter registrars only the matching records of individuals who registered to vote before identifying themselves as non-U.S. citizens to DPS when applying for a driver's license or personal identification card. This will ensure that naturalized U.S. citizens who lawfully registered to vote are not impacted by this voter registration list maintenance process.” Verifying your registration The Texas Secretary of State’s office allows residents to check their voter registration status online by visiting this website. Voter ID requirements Texas requires voters to present photo identification while voting. The following list of accepted ID was current as of February 2023. Click here for the Texas Secretary of State's page on accepted ID to ensure you have the most current information. Texas driver’s license issued by the Texas Department of Public Safety (DPS) Texas Election Identification Certificate issued by DPS Texas Personal Identification Card issued by DPS Texas handgun license issued by DPS United States Military Identification Card containing the person’s photograph United States Citizenship Certificate containing the person’s photograph United States passport (book or card) Identification provided by voters aged 18-69 may be expired for no more than four years before the election date. Voters aged 70 and older can use an expired ID card regardless of how long ago the ID expired. Voters who are unable to provide one of the ID options listed above can sign a Reasonable Impediment Declaration and provide one of the following supporting documents: Copy or original of a government document that shows the voter’s name and an address, including the voter’s voter registration certificate Copy of or original current utility bill Copy of or original bank statement Copy of or original government check Copy of or original paycheck Copy of or original of (a) a certified domestic (from a U.S. state or territory) birth certificate or (b) a document confirming birth admissible in a court of law which establishes the voter’s identity (which may include a foreign birth document) The following voters are exempt from showing photo ID: Voters with a disability Voters with a disability "may apply with the county voter registrar for a permanent exemption to presenting an acceptable photo identification or following the Reasonable Impediment Declaration procedure in the county." Voters who have a religious objection to being photographed Voters who do not have a photo ID can obtain a Texas Election Identification Certificate (EIC) at any Texas driver’s license office during regular business hours. Voters can also obtain an Election Identification Certificate from a mobile station. Locations are listed here.

See also

2023 measures

• 2023 ballot measures
• Taxes on the ballot
• 2023 legislative sessions

Texas

• Texas ballot measures
• Texas ballot measure laws

News and analysis

• Ballot measure lawsuits
• Ballot measure readability
• Ballot measure polls

External links

• Texas House Joint Resolution 132