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A JOINT RESOLUTION
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proposing a constitutional amendment clarifying that a tax imposed |
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on certain business entities is not subject to Section 24, Article |
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VIII, Texas Constitution, and imposing certain limitations on the |
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computation of a tax imposed on a business entity. |
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BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 24, Article VIII, Texas Constitution, is |
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amended by adding Subsection (k) to read as follows: |
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(k) Notwithstanding any other provision of this section, |
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this section does not apply to a tax imposed on a business entity |
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that is organized under the laws of this state, another state, or a |
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foreign nation to provide liability protection for the owners from |
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the debts and other obligations of the business entity. |
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SECTION 2. Article VIII, Texas Constitution, is amended by |
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adding Section 25 to read as follows: |
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Sec. 25. A tax imposed on a business entity may not be |
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computed using the business entity's taxable margin, as determined |
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under Section 171.101, Tax Code, as that section existed on January |
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1, 2011, or a substantially similar tax base. |
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SECTION 3. The following temporary provision is added to |
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the Texas Constitution: |
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TEMPORARY PROVISION. (a) This temporary provision applies |
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to the constitutional amendment proposed by the 82nd Legislature, |
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Regular Session, 2011, clarifying that a tax imposed on a business |
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entity organized to provide liability protection for the owners |
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from the debts and other obligations of the business entity is not a |
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tax subject to Section 24, Article VIII, of this constitution and |
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imposing certain limitations on the manner in which a tax imposed on |
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a business entity may be computed. |
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(b) The changes made by Section 25, Article VIII, of this |
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constitution, as added by the amendment, apply only to a tax |
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liability of a business entity that is originally due on or after |
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January 1, 2014. |
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(c) This temporary provision expires January 1, 2015. |
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SECTION 4. This proposed constitutional amendment shall be |
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submitted to the voters at an election to be held November 8, 2011. |
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The ballot shall be printed to provide for voting for or against the |
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proposition: "The constitutional amendment clarifying that a tax |
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imposed on a business entity organized to provide liability |
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protection for the owners from the debts and other obligations of |
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the business entity is not subject to Section 24, Article VIII, |
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Texas Constitution, and imposing certain limitations on the manner |
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in which a tax imposed on a business entity may be computed." |