79S30317 DAK-D

By:  Branch                                                     H.J.R. No. 22 



A JOINT RESOLUTION

proposing a constitutional amendment requiring any increase in the 
rate of the franchise tax be approved by two-thirds of all the 
members elected to each house of the legislature.
	BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:                       
	SECTION 1.  Article VIII, Texas Constitution, is amended by 
adding Section 25 to read as follows:
	Sec. 25.  (a)  A bill increasing the rate of the franchise 
tax per year of privilege period of taxable margin above the rate 
provided by _.B. No. __, Acts of the 79th Legislature, 3rd Called 
Session, 2006, may take effect only if passed by a record vote of 
two-thirds of all the members elected to each house of the 
legislature on final consideration in each house.
	(b)  This section applies to an increase in the rate of the 
franchise tax as it applies to any taxable entity, including a 
taxable entity primarily engaged in retail or wholesale trade.
	(c)  This section does not apply to a bill that decreases the 
rate of the franchise tax.  If the rate of the franchise tax is 
decreased, this section applies to any subsequent increase in that 
rate.
	(d)  This section does not apply to a bill that amends:                 
		(1)  the manner in which the franchise tax is computed, 
including the determination of margin and taxable margin and any 
allowable deductions or credits;
		(2)  the manner in which the franchise tax is 
administered or enforced; or
		(3)  the applicability of the franchise tax to certain 
entities.     
	SECTION 2.  This proposed constitutional amendment shall be 
submitted to the voters at an election to be held November 7, 2006.  
The ballot shall be printed to provide for voting for or against the 
proposition:  "The constitutional amendment  requiring any increase 
in the rate of the franchise tax be approved by two-thirds of all 
the members elected to each house of the legislature."