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Kozi Checks & Balances TaxTactics News

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October 24.2025

2 Minutes Read

Texas Proposition 9 Seeks to Empower Small Businesses with Tax Exemption

Texas Ballot Measure Would Help Main Street with Increased Personal Property Tax Exemption

Texas Proposition 9: A Step Toward Empowering Small Business

In the realm of property taxes, growing concerns over the burdens placed on local businesses have prompted innovative legislative actions. A significant focus is now on Texas Proposition 9, which aims to amend the state constitution to increase the personal property tax exemption to $125,000 for small businesses. This measure reflects a growing recognition of the need to support small and mid-sized businesses, a vital segment of Texas's economy.

Understanding the Impact of Personal Property Taxes

Property taxes are a primary funding source for state and local governments in the U.S., assisting in financing essential services such as education and public safety. However, the taxation of personal property, which includes tangible items like equipment and machinery, places an additional burden on businesses, particularly smaller entities without extensive resources.

Bridging the Gap: Reducing Compliance Burdens

The current Texas law allows only a small exemption of $2,500 for business personal property. By moving to a more generous $125,000 exemption, Proposition 9 aims to alleviate the intricate compliance requirements and costs that small businesses often cannot afford. As highlighted in a study from Connecticut, such exemptions can profoundly impact businesses: a mere $10,000 exemption could relieve 46% of businesses while minimally affecting overall tax revenues.

Lessons from Other States

Similar reforms in states like Indiana and Rhode Island have paved the way for Texas to consider more competitive tax structures. Indiana's recent increase in its tangible personal property exemption from $20,000 to $40,000 saw significant relief without greatly affecting tax revenues. These examples illustrate the potential benefits of amending Texas's tax framework to favor small businesses.

Conclusion: A Promising Vote Ahead

The impending vote on Proposition 9, set for November 4, 2025, encourages voters to consider the vital role small businesses play in the state's economy. By voting in favor of this measure, Texans have an opportunity to ease the financial burdens on local businesses, fostering an environment where they can thrive and contribute more dynamically to their communities. This initiative not only aims to boost the economy but also to strengthen the fabric of Texas's local communities.

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12.09.2025

Navigating the NCTI Tax Surprise: What States Are Missing

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12.04.2025

Why Modernizing PL 86-272 is Crucial for Today's Digital Economy

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How Tax Policy Can Significantly Reduce Smoking Harm

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Texas Proposition 9 Seeks to Empower Small Businesses with Tax Exemption

Texas Proposition 9: A Step Toward Empowering Small Business

Understanding the Impact of Personal Property Taxes

Bridging the Gap: Reducing Compliance Burdens

Lessons from Other States

Conclusion: A Promising Vote Ahead

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