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Texas Bullion Depository

Endorsement watch: Constitutional amendments

As you know, there are ten constitutional amendments up for a vote on the November ballot. They will be on everyone’s ballot, and depending where you are may be the only things on your ballot. The Chron makes their recommendations on them. I’ll highlight three of the ten:

Vote no on Proposition 1. To allow certain municipal judges to be elected to more than one office at the same time. We urge voters to reject the amendment. Even in small communities, candidates running for local office ought to be local residents. Existing law already allows for elected municipal judges to be appointed to serve in another court, but expanding that laxity to elected positions as well is unnecessary and unwise.

Vote no on Proposition 4. To ban outright an income tax for Texas.

There’s a big difference between mostly dead and all dead, as any fan of the cult classic Princess Bride knows well. If you’re mostly dead, Miracle Max the Wizard can work up a chocolate-covered pill to bring you back to life. If a person is all dead, the wizard says there’s only one thing to do: “Go through his pockets and look for loose change.”

Proposition 4 was designed to make sure that the wildly unpopular notion of a statewide personal income tax in Texas is not just mostly dead but all dead.

Voters already approved a constitutional amendment in 1993 that prevents lawmakers from enacting an income tax unless voters agree to it.

Proposition 4 would ban an income tax outright.

Yet, while that sounds awfully final, Miracle Max could still find a way around it. Say Prop 4 passes and becomes part of the Constitution. Any constitutional provision can be changed by a two-thirds vote in the Legislature and a popular vote.

In the end, though, it’s unclear why a change is needed. What’s more, some argue Prop 4’s wording of “individual income tax” is vague enough to draw a court challenge that could extend the ban to businesses, which could cost the state billions in revenue. Why take that risk?

We say vote “Against” and leave dead enough alone.

Vote yes on Proposition 9. To create a tax exemption for precious metal stored in the Texas Bullion Depository. Texas is the only state with a state-run metal depository, but some legislators thought allowing property taxes on precious metals puts the state at a competitive disadvantage. In one way, the amendment is superfluous, in that counties already don’t enforce property tax on precious metals. But by putting that exemption in law, it could boost the chance of the Texas depository joining COMEX, the leading marketplace for precious metals exchange. That’s a good thing and we urge voters to support this proposition.

See here for further discussion of the amendments. The Chron recommended a Yes for the rest; I agree with that, and with the No on Prop 4. I lean towards a Yes on Prop 1, and I’m a definite No on Prop 9. The whole Texas Bullion Depository thing is ridiculous, and I refuse to legitimize it in any way. The vast majority of these pass, usually with a strong majority, so to some extent this is just an expression of one’s feelings more than an exercise in democracy. But you never know, and some of these really do matter. Read up and do your duty.

A look at the Constitutional amendments we will see this November

There are ten of them, including a couple I will vote against as hard as I can.

House Joint Resolution 4 would let the Texas Water Development dole out dollars from a flood infrastructure fund — created by Senate Bill 7, which would spend $1.7 billion from the rainy day fund — to be used for planning, seeking permits for or constructing flood-related projects. SB 7 is awaiting Gov. Greg Abbott’s signature.

If approved by voters, the flood infrastructure fund would be created at the start of next year.

HJR 34 would let the Legislature temporarily lower tax rates on property damaged during a disaster declared by the governor. House Bill 492 would set the initial tax exemption rates, up to a full exemption, according to the extent of the damage.

HJR 38 would ban the creation of a state income tax, doubling down on a constitutional amendment approved by voters in 1993 that requires voters’ permission for the Legislature to create a state income tax.

[…]

HJR 95 creates a tax exemption for precious metals held in the Texas Bullion Depository, which opened in North Austin in June 2018 with its permanent location in Leander expected to open in December.

While that depository made Texas the only state to have a state-operated depository, HJR 95 author Rep. Giovanni Capriglione, R-Southlake, said it is at a competitive disadvantage because it is also the only state allowing local property taxes on precious metals.

HJR 72 intends to ease the pressure put on smaller communities to find municipal judges by allowing one person to be elected to multiple cities’ judgeships. Currently a person can only hold multiple municipal judgeships by being appointed to each one.

Senate Joint Resolution 32 would let police dogs and other law enforcement animals retire in their old age to live with their handler or other caretaker. The state constitution currently prevents law enforcement from transferring valuable property to a private person or organization for free.

The other four are HJR12, HJR151, SJR24, and SJR79, all of which are financial in nature. As you know, I’m going to cast an enthusiastic but almost certainly futile vote against HJ38, the double secret illegal anti-income tax proposition. HJR95 also looks ridiculous to me – the whole Texas Bullion Depository thing is ridiculous, so it comes with the territory, while HJR72 and SJR32 seem reasonable. The rest I’ll figure out later. The ballot wording should be set in August. What do you think about these?