Proposition 9 (HJR 95) “The constitutional amendment authorizing the legislature to exempt from ad valorem taxation precious metal held in a precious metal depository located in this state.”
Texas opened a precious metals depository in 2018, run by a private company but overseen by the state government. The Constitution requires all real and tangible personal property to be taxed on its value unless exempted. These ad valorem (property) taxes are imposed at the time of purchase or exchange of precious metals. Proposition 9 would exempt from taxation precious metals held in a precious metal depository in the state.
- Other states do not tax precious metals, so creating this exemption would allow Texas depositories to be more competitive.
- The proposed amendment would increase chances that the Texas depository could join COMEX, the leading marketplace for precious metals exchange.
- Texas counties do not enforce the property tax on precious metals, so a constitutional amendment is unnecessary.
- The proposed amendment gives preference through a tax break for precious metals over other investment choices.
For more information: House Research Organization HJR 95