- Proposition 2 seeks to prohibit the state from imposing a capital gains tax on individuals, families, estates, or trusts.
✅ Pros of Proposition 2
- Protects Against Future Tax Increases
Putting this ban into the Texas Constitution means lawmakers can’t easily change it later. It locks in the rule so future leaders can’t add a capital gains tax without voter approval, giving people more certainty about taxes staying the same. - Supports Investment and Economic Growth
Capital gains taxes can discourage investment. A constitutional ban may attract investors and entrepreneurs who prefer low-tax environments. - Reinforces Texas’s No-Income-Tax Identity
Texas is known for not taxing personal income. This amendment strengthens that reputation and may appeal to residents and businesses seeking tax-friendly states. - Provides Certainty for Families and Estates
This rule would make it clear that Texas can’t tax profits from selling things like property or stocks—or even gains that haven’t been sold yet. That helps families plan ahead when passing down money or property, knowing those profits won’t be taxed by the state
❌ Cons of Proposition 2
- Limits Future Fiscal Flexibility
If Texas ever runs low on money, this amendment would block one way the state could raise funds—by taxing profits from things like selling stocks or property. That means less money could be available for schools, roads, or hospitals - May Benefit Wealthier Texans More
Capital gains are disproportionately earned by high-income individuals. Critics argue this amendment protects wealth accumulation without addressing equity. - Unrealized Gains Clause Could Be Redundant
Texas doesn’t tax unrealized gains now, and few states do. Including it may be symbolic rather than practical, adding unnecessary rigidity. - Hard to Reverse
If this rule gets added to the Texas Constitution, it’s locked in. The only way to change or remove it later is by passing another amendment—and that means lawmakers and voters would have to agree all over again. So if Texas ever needs to rethink its tax options, this rule would be hard to undo.
Proposition 3 would allow judges to deny bail for people accused of certain violent or sexual felonies if there’s strong evidence they pose a danger to public safety.
✅ Pros of Proposition 3
- Protects Public Safety
Judges could keep people accused of serious crimes—like murder, aggravated assault, or human trafficking—from being released before trial if they’re considered dangerous. - Targets the Most Serious Offenses
The amendment applies only to violent or sexual felonies, not minor crimes. It’s designed to prevent repeat offenses while someone is awaiting trial. - Responds to Real Cases
Supporters point to examples like Harris County, where over 160 homicides since 2021 were committed by people out on bail for other charges. - Adds Transparency to Bail Decisions
Instead of setting bail so high that a person can’t pay it, judges would be required to hold a hearing and present clear evidence before denying bail.
❌ Cons of Proposition 3
- Undermines Presumption of Innocence
People accused—but not convicted—could be jailed for long periods before trial, raising concerns about fairness and due process. - Increases Jail Populations
Keeping more people in jail before trial could strain county resources and lead to overcrowding. - Higher Risk of Recidivism
Studies show that longer pretrial detention can make it harder for people to reintegrate, increasing the chance they’ll commit future crimes—even if they weren’t guilty of the original charge. - Disproportionate Impact on Low-Income Defendants
Those without resources may be more likely to be held, even if they pose no real threat, while wealthier defendants can still afford bail in other cases.
Proposition 4 would direct up to $1 billion per year from state sales tax revenue into the Texas Water Fund, helping finance long-term water infrastructure projects through 2047.
✅ Pros of Proposition 4
- Invests in Long-Term Water Security
Texas faces growing water demands due to population growth, drought, and aging infrastructure. This amendment would provide steady funding for water supply, treatment, and conservation projects statewide. - Uses Surplus Revenue, Not New Taxes
The money would come from sales tax revenue after the state collects $46.5 billion annually—meaning it taps into surplus funds, not new taxes or cuts to existing services. - Supports Rural and Urban Communities
Water infrastructure upgrades would benefit both small towns and large cities, helping ensure safe drinking water, reliable irrigation, and flood control. - Creates a Dedicated, Protected Fund
The Texas Water Fund would be constitutionally protected from being diverted to other uses, ensuring long-term accountability and focus on water needs.
❌ Cons of Proposition 4
- Limits Legislative Flexibility
Once approved, the fund becomes constitutionally protected for 10 years, making it harder for lawmakers to redirect money during emergencies or budget shortfalls. - Could Reduce Funds for Other Services
If sales tax revenue slows or other needs grow (like education or healthcare), dedicating up to $1 billion annually to water could strain the state budget. - Less Oversight Over Time
Critics warn that constitutionally dedicated funds like this one operate outside the normal budget process, reducing transparency and legislative control. - No Guarantee of Local Impact
While the fund supports statewide projects, there’s no guarantee that small communities like Cuero will see direct benefits unless they apply and qualify for funding.
Proposition 5 would allow the Texas Legislature to exempt animal feed held for retail sale from property taxes. It aims to fix a tax inconsistency and support agricultural businesses.
📜 Full Proposition Summary
Ballot Language:
“The constitutional amendment authorizing the legislature to exempt from ad valorem taxation tangible personal property consisting of animal feed held by the owner of the property for sale at retail.”
What It Does:
Proposition 5 would amend Article 8 of the Texas Constitution to allow the Legislature to exempt animal feed held in inventory for retail sale from property taxes. Currently, animal feed is tax-exempt when harvested and when sold—but not while sitting in a store as inventory. This amendment would close that gap.
✅ Pros of Proposition 5
- Fixes a Tax Inconsistency
Animal feed is tax-exempt at most stages of its life cycle—except when held in inventory. This amendment corrects that inconsistency. - Supports Farmers and Ranchers
Feed is often stored in bulk during peak seasons. Exempting it from property tax could reduce costs for agricultural businesses and help stabilize prices. - Could Lower Consumer Prices
Supporters argue that removing the tax burden on feed inventory may lead to lower prices for farmers, ranchers, and eventually consumers. - Backed by Agricultural Groups
Organizations like the Texas Farm Bureau and Colony Ranch Supply support the measure, saying it helps rural economies and small businesses.
❌ Cons of Proposition 5
- Reduces Local Tax Revenue
Exempting feed inventory from property taxes could lower revenue for counties and school districts, potentially affecting public services. - Creates Uneven Tax Treatment
Most other retail inventory is taxed. Critics say this gives feed sellers an unfair advantage over other businesses. - No Guarantee of Price Drop
Sellers may not pass savings on to consumers. The tax break could benefit store owners more than farmers or buyers. - Limited Scope
The amendment only affects animal feed—not other agricultural supplies—raising questions about fairness and broader impact.
Proposition 6 would allow more disabled Texans to qualify for property tax exemptions by expanding eligibility rules.
🗳️ Ballot Language
“The constitutional amendment authorizing the legislature to establish a temporary property tax exemption for real property subject to a residence homestead exemption owned by a person who is disabled and has a temporary inability to pay ad valorem taxes because of a disaster.”
This amendment stems from House Joint Resolution 4 (HJR 4) and is on the ballot for voter approval on November 4, 2025.
✅ Pros of Proposition 6
- Provides Relief During Disasters
Disabled homeowners who face temporary hardship—such as after a flood, hurricane, or fire—could receive a temporary property tax exemption to help them recover. - Targets Vulnerable Texans
The amendment is designed for disabled individuals who already qualify for a homestead exemption but are temporarily unable to pay taxes due to a disaster. It adds a layer of protection for those most at risk. - Promotes Housing Stability
By easing the tax burden during emergencies, the measure could help prevent displacement or foreclosure for disabled residents. - Legislative Flexibility
It gives lawmakers the authority to define the terms and duration of the exemption, allowing for tailored responses to different types of disasters.
❌ Cons of Proposition 6
- May Reduce Local Revenue
Property taxes fund schools, emergency services, and infrastructure. Exemptions—even temporary ones—could reduce funding for these services in disaster-stricken areas. - Unclear Implementation Details
The amendment gives the Legislature power to define eligibility and duration, but those rules aren’t set yet. Critics worry about inconsistent or delayed relief. - Limited Scope
The exemption only applies to disabled individuals with homestead exemptions. Renters, non-disabled homeowners, or those without formal exemptions wouldn’t benefit. - Potential for Administrative Burden
Counties may face challenges verifying eligibility and processing temporary exemptions quickly during emergencies.
Official Explanatory Statement
You can read the full legal summary from the Texas Secretary of State here:
2025 Explanatory Statements (PDF)
Editor’s Note:
These are propositions 2 – 6 in a multi-part series examining the 17 constitutional amendments on Texas’s November ballot.
Check back tomorrow as Cuero Online News breaks down more Propositions giving voters the facts they need to make informed decisions before heading to the polls.
Proposition 1 https://cueroonlinenews.com/breaking-down-the-17-constitutional-amendments-what-texas-voters-need-to-know/