Proposing a constitutional amendment providing that Section 24, Article VIII, Texas Constitution, does not apply to a tax imposed on certain business entities.
If enacted, SJR15 would allow for the imposition of certain taxes on business entities, potentially broadening the tax base by including various forms of businesses while exempting sole proprietorships and specifically structured general partnerships. This could provide the state with increased revenue from corporations and other business entities that are currently not subject to such taxes due to the existing constitutional provisions. This amendment would require the voters’ approval at the upcoming election, signifying its importance in the legislative process.
SJR15, introduced by Senator Shapleigh, proposes a constitutional amendment that modifies Section 24, Article VIII of the Texas Constitution. The amendment specifically states that this section does not apply to taxes imposed on certain business entities, explicitly excluding sole proprietorships and general partnerships owned entirely by natural persons without limited liability. This change seeks to clarify the application of state tax regulations concerning business entities and exemptions that may currently exist under Texas law.
There may be substantial debate surrounding SJR15, especially regarding its implications for the business community in Texas. Proponents argue that broadening the scope of taxation on business entities provides the state with necessary funds for public services and infrastructure. However, opponents might contend that this could discourage business investment and growth, impacting the economic landscape and competitiveness of Texas. The distinction between types of business ownership in this amendment could also lead to discussions regarding fairness and equity in tax burdens among different entities.