82R22172 KLA-D
By: Ogden S.J.R. No. 52
A JOINT RESOLUTION
proposing a constitutional amendment clarifying that a tax imposed
on certain business entities is not subject to Section 24, Article
VIII, Texas Constitution, and imposing certain limitations on the
computation of a tax imposed on a business entity.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 24, Article VIII, Texas Constitution, is
amended by adding Subsection (k) to read as follows:
(k) Notwithstanding any other provision of this section,
this section does not apply to a tax imposed on a business entity
that is organized under the laws of this state, another state, or a
foreign nation to provide liability protection for the owners from
the debts and other obligations of the business entity.
SECTION 2. Article VIII, Texas Constitution, is amended by
adding Section 25 to read as follows:
Sec. 25. A tax imposed on a business entity may not be
computed using the business entity's taxable margin, as determined
under Section 171.101, Tax Code, as that section existed on January
1, 2011, or a substantially similar tax base.
SECTION 3. The following temporary provision is added to
the Texas Constitution:
TEMPORARY PROVISION. (a) This temporary provision applies
to the constitutional amendment proposed by the 82nd Legislature,
Regular Session, 2011, clarifying that a tax imposed on a business
entity organized to provide liability protection for the owners
from the debts and other obligations of the business entity is not a
tax subject to Section 24, Article VIII, of this constitution and
imposing certain limitations on the manner in which a tax imposed on
a business entity may be computed.
(b) The changes made by Section 25, Article VIII, of this
constitution, as added by the amendment, apply only to a tax
liability of a business entity that is originally due on or after
January 1, 2014.
(c) This temporary provision expires January 1, 2015.
SECTION 4. This proposed constitutional amendment shall be
submitted to the voters at an election to be held November 8, 2011.
The ballot shall be printed to provide for voting for or against the
proposition: "The constitutional amendment clarifying that a tax
imposed on a business entity organized to provide liability
protection for the owners from the debts and other obligations of
the business entity is not subject to Section 24, Article VIII,
Texas Constitution, and imposing certain limitations on the manner
in which a tax imposed on a business entity may be computed."