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."