By:  Montford, et al.                                 S.J.R. No. 49
                                SENATE JOINT RESOLUTION
    1-1  proposing a constitutional amendment prohibiting a personal income
    1-2  tax without voter approval and dedicating the proceeds of the tax
    1-3  to education and property tax relief.
    1-4        BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Article VIII, Section 1(c), of the Texas
    1-6  Constitution is amended to read as follows:
    1-7        (c)  The Legislature may provide for the taxation of
    1-8  intangible property and may also impose occupation taxes, both upon
    1-9  natural persons and upon corporations, other than municipal, doing
   1-10  any business in this State.  Subject to the restrictions of Section
   1-11  24 of this article, it <It> may also tax incomes of both natural
   1-12  persons and corporations other than municipal.  Persons<, except
   1-13  that persons> engaged in mechanical and agricultural pursuits shall
   1-14  never be required to pay an occupation tax.
   1-15        SECTION 2.  Article VIII of the Texas Constitution is amended
   1-16  by adding Section 24 to read as follows:
   1-17        Sec. 24.  (a)  A general law enacted by the legislature that
   1-18  imposes a tax on the net incomes of natural persons, including a
   1-19  person's share of partnership and unincorporated association
   1-20  income, must provide that:
   1-21              (1)  the portion of the law imposing the tax not take
   1-22  effect until approved by a majority of the registered voters voting
   1-23  in a statewide referendum held on the question of imposing the tax,
    2-1  which referendum must specify the rate of the tax that will apply
    2-2  to taxable income as defined by law; and
    2-3              (2)  subject to legislative appropriation, allocation,
    2-4  and direction, all net revenues remaining after payment of all
    2-5  refunds allowed by law and expenses of collection from the tax
    2-6  shall be used only:
    2-7                    (A)  for the support and maintenance of primary
    2-8  and secondary public schools; and
    2-9                    (B)  to reduce ad valorem taxes for primary and
   2-10  secondary education, and in subsequent years, to provide continued
   2-11  property tax relief.
   2-12        (b)  A general law enacted by the legislature that increases
   2-13  the rate of the tax may not take effect until approved by a
   2-14  majority of the registered voters voting in a statewide referendum
   2-15  held on the question of increasing the rate, which referendum must
   2-16  specify the increased rate.
   2-17        (c)  Except as provided by Subsection (b) of this section,
   2-18  the legislature may amend or repeal a tax approved by the voters
   2-19  under this section without submitting the amendment or the repeal
   2-20  to the voters as provided by Subsection (a) of this section.
   2-21        (d)  If the legislature repeals a tax approved by the voters
   2-22  under this section, the legislature may reenact the tax without
   2-23  submitting the reenactment to the voters as provided by Subsection
   2-24  (a) of this section only if the effective date of the reenactment
   2-25  of the tax is before the first anniversary of the effective date of
    3-1  the repeal.
    3-2        (e)  The legislature may provide for the taxation of income
    3-3  in a manner which is consistent with federal law.
    3-4        SECTION 3.  This proposed constitutional amendment shall be
    3-5  submitted to the voters at an election to be held November 2, 1993.
    3-6  The ballot shall be printed to provide for voting for or against
    3-7  the proposition:  "The constitutional amendment prohibiting a
    3-8  personal income tax without voter approval and dedicating the
    3-9  proceeds of the tax to education and property tax relief."