Proposing a constitutional amendment requiring the periodic review of state and local tax preferences and the expiration of certain tax preferences if not reauthorized by law.

HJR 196 proposes a constitutional amendment requiring Texas to periodically review state and local tax breaks (such as exemptions or reduced rates) and automatically expire most tax breaks after six years unless lawmakers reauthorize them. Tax breaks enacted on or after September 1, 2026, would expire six years after enactment, and those reauthorized on or after that date would expire six years after reauthorization. The amendment must be approved by Texas voters in the November 4, 2025 election to take effect on January 1, 2026, after which it would change how tax breaks are managed.