Regular Session
Government Affairs & Regulatory Compliance Analysis
HJR 4 proposes a constitutional amendment to permanently prohibit the Texas Legislature from enacting Financial Transaction Taxes (FTT) or occupation taxes on securities market operators. This measure is strategic, aiming to constitutionally lock in Texas's status as a tax-neutral jurisdiction for capital markets, specifically benefiting exchanges, broker-dealers, and clearing agencies.
Rep. Morgan Meyer·House Bill·Regular Session
This legislation has regulatory implications for the following Texas businesses and organizations:
Standard regulatory changes (effective 2025-05-05). Review during normal business planning.
Affected business types:
lowMinimal cost impact anticipated.
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Key implementation requirements and action items for compliance with this legislation
No amendments are required for existing client or vendor agreements. However, for Site Selection or Headquarters Relocation contracts, this amendment (once ratified) serves as a "Stabilization Clause," mitigating the risk of future state-level transaction taxes.
No new certifications or training are required.
No new forms or filings are generated.
CRITICAL: This amendment does not exempt financial firms from the Texas Franchise Tax (Margin Tax). You must continue to report and pay taxes based on general business activity. The prohibition applies strictly to taxes triggered by the *act* of trading securities or the *occupation* of operating an exchange.
No new fees. This legislation prevents the creation of future costs.
The "Static Date" Risk:
The amendment defines "Registered Securities Market Operator" and "Security" based on federal statutes (Exchange Act of 1934, Commodity Exchange Act) as they existed on January 1, 2025.
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
Schedule a ConsultationInformation presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
This bill's path through the Texas Legislature
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Common questions about HJR4
HJR 4 proposes a constitutional amendment to permanently prohibit the Texas Legislature from enacting Financial Transaction Taxes (FTT) or occupation taxes on securities market operators. This measure is strategic, aiming to constitutionally lock in Texas's status as a tax-neutral jurisdiction for capital markets, specifically benefiting exchanges, broker-dealers, and clearing agencies.
HJR4 was authored by Texas Representative Morgan Meyer during the Regular Session.
HJR4 was signed into law by Governor Greg Abbott on May 5, 2025.
The regulatory priority for HJR4 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of HJR4 is estimated as "low". This may vary based on industry and implementation requirements.
HJR4 addresses topics including resolutions, resolutions--constitutional amendments, taxation, taxation--general and taxation--occupation tax.
Key dates for HJR4: Effective date is 2025-05-05. Consult with legal counsel regarding applicability.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
