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Texas voters approved Proposition 9 on Tuesday which allows businesses to exempt up to $125,000 of inventory or equipment from taxes. The tax break would prevent the business from being taxed by school districts, cities, counties or any other taxing entity. HJR 1 allows the legislature to exempt up to $125,000 of the market value of income-producing personal property from property taxes. Currently, businesses are exempt from paying taxes on that property if it is worth $2,500 or less. Ballot language: "The constitutional amendment to authorize the legislature to exempt from ad valorem taxation a portion of the market value of tangible personal property a person owns that is held or used for the production of income." Under the amendment, the state would be responsible for lost tax revenue to school districts.
