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 if enacted, 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 the portion of the law imposing the tax
1-21 not take effect until approved by a majority of the registered
1-22 voters voting in a statewide referendum held on the question of
1-23 imposing the tax. The referendum must specify the rate of the tax
2-1 that will apply to taxable income as defined by law.
2-2 (b) A general law enacted by the legislature that increases
2-3 the rate of the tax, or changes the tax, in a manner that results
2-4 in an increase in the combined income tax liability of all persons
2-5 subject to the tax may not take effect until approved by a majority
2-6 of the registered voters voting in a statewide referendum held on
2-7 the question of increasing the income tax. A determination of
2-8 whether a bill proposing a change in the tax would increase the
2-9 combined income tax liability of all persons subject to the tax
2-10 must be made by comparing the provisions of the proposed change in
2-11 law with the provisions of the law for the most recent year in
2-12 which actual tax collections have been made. A referendum held
2-13 under this subsection must specify the manner in which the proposed
2-14 law would increase the combined income tax liability of all persons
2-15 subject to the tax.
2-16 (c) Except as provided by Subsection (b) of this section,
2-17 the legislature may amend or repeal a tax approved by the voters
2-18 under this section without submitting the amendment or the repeal
2-19 to the voters as provided by Subsection (a) of this section.
2-20 (d) If the legislature repeals a tax approved by the voters
2-21 under this section, the legislature may reenact the tax without
2-22 submitting the reenactment to the voters as provided by Subsection
2-23 (a) of this section only if the effective date of the reenactment
2-24 of the tax is before the first anniversary of the effective date of
2-25 the repeal.
3-1 (e) The legislature may provide for the taxation of income
3-2 in a manner which is consistent with federal law.
3-3 (f) In the first year in which a tax described by Subsection
3-4 (a) is imposed and during the first year of any increase in the tax
3-5 that is subject to Subsection (b) of this section, not less than
3-6 two-thirds of all net revenues remaining after payment of all
3-7 refunds allowed by law and expenses of collection from the tax
3-8 shall be used to reduce the rate of ad valorem maintenance and
3-9 operation taxes levied for the support of primary and secondary
3-10 public education. In subsequent years, not less than two-thirds of
3-11 all net revenues from the tax shall be used to continue such ad
3-12 valorem tax relief.
3-13 (g) The net revenues remaining after the dedication of money
3-14 from the tax under Subsection (f) of this section shall be used for
3-15 support of education, subject to legislative appropriation,
3-16 allocation, and direction.
3-17 (h) The maximum rate at which a school district may impose
3-18 ad valorem maintenance and operation taxes is reduced by an amount
3-19 equal to one cent per $100 valuation for each one cent per $100
3-20 valuation that the school district's ad valorem maintenance and
3-21 operation tax is reduced by the minimum amount of money dedicated
3-22 under Subsection (f) of this section, provided that a school
3-23 district may subsequently increase the maximum ad valorem
3-24 maintenance and operation tax rate if the increased maximum rate is
3-25 approved by a majority of the voters of the school district voting
4-1 at an election called and held for that purpose. The legislature
4-2 by general law shall provide for the tax relief that is required by
4-3 Subsection (f) and this subsection.
4-4 (i) Subsections (f) and (h) of this section apply to ad
4-5 valorem maintenance and operation taxes levied by a school district
4-6 on or after the first January 1 after the date on which a tax on
4-7 the net incomes of natural persons, including a person's share of
4-8 partnership and unincorporated association income, begins to apply
4-9 to that income, except that if the income tax begins to apply on a
4-10 January 1, Subsections (f) and (h) of this section apply to ad
4-11 valorem maintenance and operation taxes levied on or after that
4-12 date.
4-13 (j) A provision of this section prevails over a conflicting
4-14 provision of Article VII, Section 3, of this Constitution to the
4-15 extent of the conflict.
4-16 SECTION 3. This proposed constitutional amendment shall be
4-17 submitted to the voters at an election to be held November 2, 1993.
4-18 The ballot shall be printed to provide for voting for or against
4-19 the proposition: "The constitutional amendment prohibiting a
4-20 personal income tax without voter approval and, if an income tax is
4-21 enacted, dedicating the revenue to education and limiting the rate
4-22 of local school taxes."