Related Material:

"Proposed Corporate Income Tax Amendment, Constitution, 1971," by C. H. Donovan.

Civic Information Series No. 51, Public Administration Clearing Service,

University of Florida. 1971.

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HOUSE JOINT RESOLUTION NO. 7-B

A JOINT RESOLUTION proposing an amendment to Section 5 of Article VII of the Constitution of the State of Florida, limiting the prohibition against estate, inheritance and income taxes to natural persons only, and providing an effective date.

WHEREAS, it is intended by this amendment to limit death and income tax immunity to natural persons, as opposed to artificial persons or entities created by or pursuant to law such as business corporations, professional corporations, ba nking associations, savings and loan associations and other entities brought into being by compliance with state or federal statutes; and

WHEREAS, this amendment will, however, continue to prohibit imposition of these taxes upon trusts created by private contract between settlors and trustees, but the Legislature will not be barred from imposing a tax on those forms of bu siness trusts which obtain special statutory attributes from the state or federal government, such as so-called "Massachusetts business trusts."

That the following amendment to Section 5 of Article VII of the State Constitution is hereby agreed to and shall be submitted to the electors of Florida for approval or rejection at the general election to be held in November 1972, or, if authorized by three-fourths of the membership of each house of the Legislature, at an earlier special election; Section 5 of Article VII shall be amended to read as follows:

Section 5. Estate, Inheritance and Income Taxes.

(a) Natural Persons. No tax upon estates or inheritances or upon the income of natural persons who are residents or citizens of the state shall be levied by the state, or under its authority, in excess of the aggregate of amounts which may be allowed to be credited upon or deducted from any similar tax levied by the United States or any state.

(b) Others. No tax upon the income of residents and citizens other than natural persons shall be levied by the state, or under its authority, in excess of 5% of net income, as defined by law, or at such greater rate as is authorized by a three-fifths (3/5) vote of the membership of each house of the legislature or as will provide for the state the maximum amount which may be allowed to be credited against income taxes levied by the United States and other states. There shall be exempt from taxation not less than five thousand dollars ($5,000) of the excess of net income subject to tax over the maximum amount allowed to be credited against income taxes levied by the United States and other states.

(c) Effective Date. This section shall become effective immediately upon approval by the electors of Florida.

Filed in Office Secretary of State February 3, 1971.