BILL ANALYSIS

 

 

                                                                                                                                             H.J.R. 81

                                                                                                                                           By: Parker

                                                                                                                                    Ways & Means

                                                                                                       Committee Report (Unamended)

 

 

 

BACKGROUND AND PURPOSE

Texas citizens already carry the burden of the 9th highest property taxes in the nation, along with one of the higher state sales tax rates.  Given the amount of taxes collected through these two avenues and the newly created business franchise tax, a state income tax becomes more likely to be an overtaxing burden on Texas citizens.

 

HJR 81 further prevents a future state income tax my mandating that any such measure would require a super majority of approval from both legislative bodies before a referendum on the proposed income tax could be presented to the voting population.

 

RULEMAKING AUTHORITY

It is the committee's opinion that this resolution does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

 

ANALYSIS

HJR 81 amends the Texas Constitution to state that a general law that imposes a tax on the net incomes of natural persons, including a person's share of partnership and unincorporated associations income, or a general law that increase the rate of an existing income tax must:

 

1. Be enacted by the Legislature      on the affirmative vote of two-thirds of the membership of each house; and
2. Be approved by a majority of      registered voters voting in a statewide referendum held on the question of      imposing or increasing the tax.

 

Referendums held under these provision must specify the rate of the tax that will apply to taxable income, or in the event of increasing an already established income tax, the manner in which the proposed law would increase the combined income tax liability.

 

This proposed constitutional amendment shall be submitted to the voters at an election to be held November 6, 2007.  The ballot shall be printed to permit voting for or against the proposition:  "The constitutional amendment to require a two-thirds vote of the legislature to enact and submit to the voters a law imposing a tax or increasing that tax."

 

EFFECTIVE DATE

The proposed constitutional amendment she be submitted to the voters at an election to be held on November 6, 2007.