1-1 By: Montford, et al. S.J.R. No. 49
1-2 (In the Senate - Filed April 20, 1993; April 20, 1993, read
1-3 first time and referred to Committee on Finance; April 26, 1993,
1-4 reported adversely, with favorable Committee Substitute by the
1-5 following vote: Yeas 8, Nays 0; April 26, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Montford x
1-9 Turner x
1-10 Armbrister x
1-11 Barrientos x
1-12 Bivins x
1-13 Ellis x
1-14 Haley x
1-15 Moncrief x
1-16 Parker x
1-17 Ratliff x
1-18 Sims x
1-19 Truan x
1-20 Zaffirini x
1-21 COMMITTEE SUBSTITUTE FOR S.J.R. No. 49 By: Montford
1-22 SENATE JOINT RESOLUTION
1-23 proposing a constitutional amendment prohibiting a personal income
1-24 tax without voter approval and dedicating the proceeds of the tax
1-25 to education and property tax relief.
1-26 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-27 SECTION 1. Article VIII, Section 1(c), of the Texas
1-28 Constitution is amended to read as follows:
1-29 (c) The Legislature may provide for the taxation of
1-30 intangible property and may also impose occupation taxes, both upon
1-31 natural persons and upon corporations, other than municipal, doing
1-32 any business in this State. Subject to the restrictions of Section
1-33 24 of this article, it <It> may also tax incomes of both natural
1-34 persons and corporations other than municipal. Persons<, except
1-35 that persons> engaged in mechanical and agricultural pursuits shall
1-36 never be required to pay an occupation tax.
1-37 SECTION 2. Article VIII of the Texas Constitution is amended
1-38 by adding Section 24 to read as follows:
1-39 Sec. 24. (a) A general law enacted by the legislature that
1-40 imposes a tax on the net incomes of natural persons, including a
1-41 person's share of partnership and unincorporated association
1-42 income, must provide that:
1-43 (1) the portion of the law imposing the tax not take
1-44 effect until approved by a majority of the registered voters voting
1-45 in a statewide referendum held on the question of imposing the tax,
1-46 which referendum must specify the rate of the tax that will apply
1-47 to taxable income as defined by law; and
1-48 (2) subject to legislative appropriation, allocation,
1-49 and direction, all net revenues remaining after payment of all
1-50 refunds allowed by law and expenses of collection from the tax
1-51 shall be used only:
1-52 (A) for the support and maintenance of primary
1-53 and secondary public schools; and
1-54 (B) to reduce ad valorem taxes for primary and
1-55 secondary education, and in subsequent years, to provide continued
1-56 property tax relief.
1-57 (b) A general law enacted by the legislature that increases
1-58 the rate of the tax may not take effect until approved by a
1-59 majority of the registered voters voting in a statewide referendum
1-60 held on the question of increasing the rate, which referendum must
1-61 specify the increased rate.
1-62 (c) Except as provided by Subsection (b) of this section,
1-63 the legislature may amend or repeal a tax approved by the voters
1-64 under this section without submitting the amendment or the repeal
1-65 to the voters as provided by Subsection (a) of this section.
1-66 (d) If the legislature repeals a tax approved by the voters
1-67 under this section, the legislature may reenact the tax without
1-68 submitting the reenactment to the voters as provided by Subsection
2-1 (a) of this section only if the effective date of the reenactment
2-2 of the tax is before the first anniversary of the effective date of
2-3 the repeal.
2-4 (e) The legislature may provide for the taxation of income
2-5 in a manner which is consistent with federal law.
2-6 SECTION 3. This proposed constitutional amendment shall be
2-7 submitted to the voters at an election to be held November 2, 1993.
2-8 The ballot shall be printed to provide for voting for or against
2-9 the proposition: "The constitutional amendment prohibiting a
2-10 personal income tax without voter approval and dedicating the
2-11 proceeds of the tax to education and property tax relief."
2-12 * * * * *
2-13 Austin,
2-14 Texas
2-15 April 26, 1993
2-16 Hon. Bob Bullock
2-17 President of the Senate
2-18 Sir:
2-19 We, your Committee on Finance to which was referred S.J.R. No. 49,
2-20 have had the same under consideration, and I am instructed to
2-21 report it back to the Senate with the recommendation that it do not
2-22 pass, but that the Committee Substitute adopted in lieu thereof do
2-23 pass and be printed.
2-24 Montford,
2-25 Chairman
2-26 * * * * *
2-27 WITNESSES
2-28 FOR AGAINST ON
2-29 ___________________________________________________________________
2-30 Name: Frank Battle x
2-31 Representing: Tx. Assoc. of School Boards
2-32 City: Austin
2-33 -------------------------------------------------------------------
2-34 Name: Harold Scherz x
2-35 Representing: Am. Assoc. of Retired Persons
2-36 City: Austin
2-37 -------------------------------------------------------------------
2-38 Name: William Allaway x
2-39 Representing: Tx. Assoc. of Taxpayers
2-40 City: Austin
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