By Corte, Gutierrez, Kamel, et al. H.J.R. No. 20 A JOINT RESOLUTION 1-1 proposing a constitutional amendment to limit the tax rate on the 1-2 income and stated capital or asset components of the franchise tax. 1-3 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Article VIII, Texas Constitution, is amended by 1-5 adding Section 25 to read as follows: 1-6 Sec. 25. If the legislature imposes a tax on the privilege 1-7 to operate in this state as a corporation or other legal entity and 1-8 a component of the tax is determined by the corporation's or other 1-9 entity's gross, net, or other adjusted income, or on the 1-10 corporation's stated capital or assets, the legislature may not 1-11 impose the tax on the component determined on stated capital or 1-12 assets at a rate that exceeds 0.25 percent per year of privilege 1-13 period or on the component determined on income at a rate that 1-14 exceeds 4.5 percent. This section does not affect a temporary 1-15 credit on the tax due on net taxable earned surplus that is in 1-16 effect on September 1, 1995, or any related additional tax imposed 1-17 on a corporation for taking that credit. 1-18 SECTION 2. This proposed constitutional amendment shall be 1-19 submitted to the voters at an election to be held November 7, 1995. 1-20 The ballot shall be printed to provide for voting for or against 1-21 the proposition: "The constitutional amendment to limit the tax 1-22 rate on the income and stated capital or asset components of the 1-23 franchise tax."