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Texas Constitution:Article VIII, Section 1: Difference between revisions

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Texas Constitution:Article VIII, Section 1 (view source)

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As adopted in 1876, this section read: "Taxation shall be equal and uniform. All property in this State, whether owned by natural persons or corporations, other than municipal, shall be taxed in proportion to its value, which shall be ascertained as may be provided by law. The Legislature may impose a poll tax. It may also impose occupation taxes, both upon natural persons and upon corporations, other than municipal, doing any business in this State. It may also tax incomes of both natural persons and corporations, other than municipal, except that persons engaged in mechanical and agricultural pursuits shall never be required to pay an occupation tax; ''provided'', that two hundred and fifty dollars worth of household and kitchen furniture, belonging to each family in this State, shall be exempt from taxation, and provided further that the occupation tax levied by any county, city or town, for any year, on persons or corporations pursuing any profession or business, shall not exceed one-half of the tax levied by the State for the same period on such profession or business."
As adopted in 1876, this section read: "Taxation shall be equal and uniform. All property in this State, whether owned by natural persons or corporations, other than municipal, shall be taxed in proportion to its value, which shall be ascertained as may be provided by law. The Legislature may impose a poll tax. It may also impose occupation taxes, both upon natural persons and upon corporations, other than municipal, doing any business in this State. It may also tax incomes of both natural persons and corporations, other than municipal, except that persons engaged in mechanical and agricultural pursuits shall never be required to pay an occupation tax; ''provided'', that two hundred and fifty dollars worth of household and kitchen furniture, belonging to each family in this State, shall be exempt from taxation, and provided further that the occupation tax levied by any county, city or town, for any year, on persons or corporations pursuing any profession or business, shall not exceed one-half of the tax levied by the State for the same period on such profession or business."


The section has been amended 14 times. All of those amendments have been approved since 1978. The most recent amendment made a conforming change related to the repeal of Article VIII, Section [[Texas Constitution:Article VIII, Section 24|24]].
The section has been amended fourteen times. All of those amendments have been approved since 1978. The most recent amendment made a conforming change related to the repeal of Article VIII, Section [[Texas Constitution:Article VIII, Section 24|24]].


The Texas Attorney General, in Tex. Att'y Gen. Op. [https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/2008/ga0653.pdf#page=3 GA-653] (2008), opined that: "Texas courts have long recognized that absolute equality and uniformity in taxation is an unattainable ideal and not required by the constitution. . . . Thus, article VIII, section 1(a) is satisfied when the tax classification is not unreasonable, arbitrary, or capricious and when it operates equally on persons or property within the class."
The Texas Attorney General, in Tex. Att'y Gen. Op. [https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/2008/ga0653.pdf#page=3 GA-653] (2008), opined that: "Texas courts have long recognized that absolute equality and uniformity in taxation is an unattainable ideal and not required by the constitution. . . . Thus, article VIII, section 1(a) is satisfied when the tax classification is not unreasonable, arbitrary, or capricious and when it operates equally on persons or property within the class."
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* ''In re Nestle USA, Inc.'', 387 S.W.3d 610, [https://scholar.google.com/scholar_case?case=4452648191696463516#p623 623] (Tex. 2012) ("Nestle argues that no classification or differentiation in the application of the franchise tax, unrelated to the value of the privilege of doing business in Texas, is permitted by the Equal and Uniform Clause. While we agree that a classification in a tax must be related to the object of the tax, we believe that the Legislature must have discretion . . . . This is especially true when the object of the tax—occupations or the privilege of doing business in the state—is not easily or exactly valued. 'There is always a presumption of constitutional validity with regard to legislation and it is especially strong in respect to statutes relating to taxation.'")
* ''In re Nestle USA, Inc.'', 387 S.W.3d 610, [https://scholar.google.com/scholar_case?case=4452648191696463516#p623 623] (Tex. 2012) ("Nestle argues that no classification or differentiation in the application of the franchise tax, unrelated to the value of the privilege of doing business in Texas, is permitted by the Equal and Uniform Clause. While we agree that a classification in a tax must be related to the object of the tax, we believe that the Legislature must have discretion . . . . This is especially true when the object of the tax—occupations or the privilege of doing business in the state—is not easily or exactly valued. 'There is always a presumption of constitutional validity with regard to legislation and it is especially strong in respect to statutes relating to taxation.'")
* ''Texas Boll Weevil Eradication Foundation v. Lewellen'', 952 S.W.2d 454, [https://scholar.google.com/scholar_case?case=14712011369692053572#p462 462] (Tex. 1997) ("Here, the growers do not argue that the Foundation's assessments exceed the amount needed for eradication. Rather, they argue that eradication of the boll weevil does not constitute 'regulation of the cotton industry' for purposes of applying the primary purpose test. We disagree. . . . We hold that eradication of the boll weevil is a proper subject for regulation by the State pursuant to its police power. Because the Foundation's assessments are levied in an amount needed to fund the eradication programs, and are used for that purpose, we hold that they are regulatory fees, not occupation taxes.")


* ''Enron Corp. v. Spring I.S.D.'', 922 S.W.2d 931, [https://scholar.google.com/scholar_case?case=17322703382744090038#p936 936-37] (Tex. 1996) (citations omitted) ("It provides only that value is to be 'ascertained as may be provided by law.' We conclude that the Legislature may constitutionally draw distinctions in the manner in which market value of property is determined for ad valorem tax purposes, as long as the classifications . . . . The requirements of uniformity and equality under section 1(a) of article VIII of the Texas Constitution and those under the Fourteenth Amendment to the United States Constitution are similar. Accordingly, decisions examining the constitutionality of classifications for tax purposes under the Fourteenth Amendment can offer guidance.")
* ''Enron Corp. v. Spring I.S.D.'', 922 S.W.2d 931, [https://scholar.google.com/scholar_case?case=17322703382744090038#p936 936-37] (Tex. 1996) (citations omitted) ("It provides only that value is to be 'ascertained as may be provided by law.' We conclude that the Legislature may constitutionally draw distinctions in the manner in which market value of property is determined for ad valorem tax purposes, as long as the classifications . . . . The requirements of uniformity and equality under section 1(a) of article VIII of the Texas Constitution and those under the Fourteenth Amendment to the United States Constitution are similar. Accordingly, decisions examining the constitutionality of classifications for tax purposes under the Fourteenth Amendment can offer guidance.")
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