Proposing a constitutional amendment prohibiting the imposition of a tax on the realized or unrealized capital gains of an individual, family, estate, or trust.
Impact
Should SJR18 be adopted, it would have significant implications for state taxation law. It would enhance the protection of individual wealth and investment returns from state taxation, possibly encouraging economic activity and investment within Texas. However, critics of the bill express concerns about its long-term effects on state revenue, as capital gains taxes contribute to the funding of public services. The bill also clarifies that it does not affect the levying of property taxes or sales taxes, which are integral to state and local government funding.
Summary
SJR18 proposes a constitutional amendment that would prohibit the state legislature from imposing taxes on the realized or unrealized capital gains of individuals, families, estates, or trusts. This amendment aims to clarify and solidify the existing tax structure in Texas, ensuring that any capital gains tax could not be levied at either the state or local level. By preventing the taxation of capital gains, the bill reflects an intention to create a more favorable investment climate for residents, which is appealing to many in the business and financial sectors.
Sentiment
The discussions surrounding SJR18 have revealed a polarized sentiment. Supporters view the bill as a necessary measure to protect personal assets and foster an environment conducive to growth and investment. They argue that prohibiting capital gains taxation aligns with the state's pro-business reputation. Conversely, opponents worry that the bill could exacerbate inequalities in the tax system and limit the financial resources available for public programs, such as education and healthcare, which are traditionally funded by such taxes.
Contention
Notable contention arises from the bill's potential to limit the state's ability to adapt its taxation policies in response to changing economic conditions. While proponents argue for the permanence of this amendment to safeguard personal investments, opponents highlight the importance of having the flexibility to impose taxes when necessary for revenue generation. The issue raises broader questions about fiscal responsibility and the balance between tax relief for individuals versus the public good funded by state revenues.
Identical
Proposing a constitutional amendment prohibiting the imposition of a tax on the realized or unrealized capital gains of an individual, family, estate, or trust.
Proposing a constitutional amendment relating to the appropriation of the net revenue received from the imposition of state sales and use taxes on sporting goods.
Proposing a constitutional amendment providing for the creation of the Texas energy fund to support the construction, maintenance, modernization, and operation of electric generating facilities.
Proposing a constitutional amendment prohibiting the enactment of a law imposing an occupation tax on certain entities that enter into transactions conveying securities or imposing a tax on certain securities transactions.
Proposing a constitutional amendment authorizing a local option exemption from ad valorem taxation by a county or municipality of all or part of the appraised value of real property used to operate a child-care facility.
Proposing a constitutional amendment providing for the creation of funds to support the capital needs of educational programs offered by the Texas State Technical College System and certain component institutions of the Texas State University System and repealing the limitation on the allocation to the Texas State Technical College System and its campuses of the annual appropriation of certain constitutionally dedicated funding for public institutions of higher education.