By Corte, Gutierrez, Kamel                            H.J.R. No. 20
       74R2253 CBH-D
                                  A JOINT RESOLUTION
    1-1  proposing a constitutional amendment to limit the tax rate on the
    1-2  income component of the franchise tax.
    1-3        BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Article VIII of the Texas Constitution is amended
    1-5  by 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, the legislature may
   1-10  not impose the tax on the component determined on income at a rate
   1-11  that exceeds 4.5 percent.
   1-12        SECTION 2.  This proposed constitutional amendment shall be
   1-13  submitted to the voters at an election to be held November 7, 1995.
   1-14  The ballot shall be printed to provide for voting for or against
   1-15  the proposition:  "The constitutional amendment to limit the tax
   1-16  rate on the income component of the franchise tax."