SAN ANTONIO (KTSA News) — A proposed constitutional amendment about a state income tax will be on the ballot in Texas this November.
It’s Proposition 4, also known as HJR 38 “The constitutional amendment prohibiting the imposition of an individual income tax, including a tax on an individual’s share of partnership and unincorporated association income.”
If you want to PREVENT a state income tax, vote yes.
Voting no is a vote to leave the door open for the state the enact a personal income tax through a statewide referendum in the future.
If the amendment doesn’t pass, a state income tax would not be created… but it wouldn’t be prohibited.
The amendment was authored by Republican State Representatives Jeff Leach, Briscoe Cain, Will Metcalf and Dustin Burrows.
Several Democrats are taking issue with one word in the amendment.
The state’s Legislative Budget Board has determined that the term “individual” isn’t defined and could be interpreted to include corporations or business partnerships that are currently paying state franchise taxes.
Some Democratic lawmakers including State Senator Royce West feel that one word could have a serious impact on state revenues. They would prefer replacing “individual” with “natural persons”, a term that already used in the taxation section of Texas Constitution.
Texas is one of 7 states that do not have a personal income tax.
The others are Alaska, Florida, Nevada, South Dakota, Washington, and Wyoming.
Two other states, New Hampshire and Tennessee don’t place a tax on wages but they do tax investment income and interest.