By Corte                                              H.J.R. No. 12

      75R1840 JBN-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 4, 1997.

1-14     The ballot shall be printed to permit voting for or against the

1-15     proposition:  "The constitutional amendment to limit the tax rate

1-16     on the income component of the franchise tax."