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HJR002.................................................by REVENUE AND TAXATION
TAXPAYER'S BILL OF RIGHTS - Proposing an amendment to the Constitution of the
State of Idaho by the addition of a new section to provide a taxpayer's bill
of rights; to limit legislative appropriations and expenditures in any fiscal
year to the appropriations and expenditures from the previous fiscal year with
allowance for annual changes in the cost-of-living and population; to provide
that any bill that creates or increases a tax rate, removes a tax exemption or
creates or increases a discretionary user charge after ratification of this
section, must be agreed to by two-thirds of all members present in each of the
two houses of the Legislature and signed by the Governor; to create the
Emergency Fund, the Budget Stabilization Fund and the Excess Revenue Fund; to
provide for deposits to the funds and withdrawal of revenues from the funds;
and to provide that the Legislature may impose an expenditure limitation upon
local units of government in a manner that is consistent with the provisions
of Section 18, Article VII, of the Constitution of the State of Idaho.
02/10 House intro - 1st rdg - to printing
02/11 Rpt prt - to Rev/Tax
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE HOUSE OF REPRESENTATIVES
HOUSE JOINT RESOLUTION NO. 2
BY REVENUE AND TAXATION COMMITTEE
1 A JOINT RESOLUTION
2 PROPOSING AN AMENDMENT TO ARTICLE VII OF THE CONSTITUTION OF THE STATE OF
3 IDAHO, BY THE ADDITION OF A NEW SECTION 18, ARTICLE VII, OF THE CONSTITU-
4 TION OF THE STATE OF IDAHO, RELATING TO A TAXPAYER'S BILL OF RIGHTS TO
5 LIMIT LEGISLATIVE APPROPRIATIONS AND EXPENDITURES IN ANY FISCAL YEAR TO
6 THE APPROPRIATIONS AND EXPENDITURES FROM THE PREVIOUS FISCAL YEAR WITH
7 ALLOWANCE FOR ANNUAL CHANGES IN THE COST OF LIVING AND POPULATION, TO PRO-
8 VIDE THAT ANY BILL THAT CREATES OR INCREASES A TAX RATE, REMOVES A TAX
9 EXEMPTION, OR CREATES OR INCREASES A DISCRETIONARY USER CHARGE AFTER RATI-
10 FICATION OF THIS SECTION, MUST BE AGREED TO BY TWO-THIRDS OF ALL MEMBERS
11 PRESENT IN EACH OF THE TWO HOUSES OF THE LEGISLATURE AND SIGNED BY THE
12 GOVERNOR, TO CREATE THE EMERGENCY FUND, THE BUDGET STABILIZATION FUND AND
13 THE EXCESS REVENUE FUND, TO PROVIDE FOR DEPOSITS TO THE FUNDS AND WITH-
14 DRAWAL OF REVENUES FROM THE FUNDS AND TO PROVIDE THAT THE LEGISLATURE MAY
15 IMPOSE AN EXPENDITURE LIMITATION UPON LOCAL UNITS OF GOVERNMENT IN A MAN-
16 NER THAT IS CONSISTENT WITH THE PROVISIONS OF SECTION 18, ARTICLE VII, OF
17 THE CONSTITUTION OF THE STATE OF IDAHO; STATING THE QUESTION TO BE SUBMIT-
18 TED TO THE ELECTORATE; DIRECTING THE LEGISLATIVE COUNCIL TO PREPARE THE
19 STATEMENTS REQUIRED BY LAW; AND DIRECTING THE SECRETARY OF STATE TO PUB-
20 LISH THE AMENDMENT AND ARGUMENTS AS REQUIRED BY LAW.
21 Be It Resolved by the Legislature of the State of Idaho:
22 SECTION 1. That Article VII of the Constitution of the State of Idaho be
23 amended by the addition thereto of a NEW SECTION, to be known and designated
24 as Section 18, Article VII, of the Constitution of the State of Idaho and to
25 read as follows:
26 SECTION 18. TAXPAYER'S BILL OF RIGHTS. Unless agreed to by two-
27 thirds of all the members present in each of the two houses of the
28 legislature and thereupon signed by the governor pursuant to Section
29 10 of Article IV, no appropriation shall be made, nor expenditure
30 authorized by the legislature, whereby the expenditure of the state
31 during any fiscal year shall exceed the sum of the total appropria-
32 tion for the previous fiscal year and the annual percentage changes
33 in the cost of living and population.
34 For the purposes of this section, "cost of living" shall mean
35 all items contained in the consumer price index for the United States
36 of America, or any comparable index, as computed by the United States
37 bureau of labor statistics or the United States department of com-
38 merce for a twelve month period of time; and "population" shall mean
39 the number of people residing in the state of Idaho, excluding armed
40 forces personnel stationed overseas, as determined by the United
41 States bureau of the census.
42 For the purposes of this section, "appropriation" and
43 "expenditure" shall apply only to those appropriations funded by tax
2
1 and levy collections by the state for general fund purposes, but
2 shall not apply to moneys deposited or drawn on the emergency fund,
3 the budget stabilization fund, or the excess revenue fund created in
4 this section.
5 Any bill that creates or increases a tax rate, removes a tax
6 exemption, or creates or increases a discretionary user charge after
7 ratification of this section, must be agreed to by two-thirds of all
8 members present in each of the two houses of the legislature and
9 thereupon be presented to the governor pursuant to Section 10 of
10 Article IV.
11 There are hereby created three funds in the state treasury: the
12 emergency fund, the budget stabilization fund, and the excess revenue
13 fund.
14 Twenty-five percent of state revenues collected in excess of the
15 "appropriation" and "expenditure" provision of this section shall be
16 deposited to the emergency fund but shall not exceed one percent of
17 the total appropriations for the prior fiscal year. No money shall be
18 drawn from the emergency fund except upon declaration of an emergency
19 by the governor and upon concurrence of a majority vote of all mem-
20 bers present in each of the two houses of the legislature and there-
21 upon be presented to the governor pursuant to Section 10 of Article
22 IV.
23 Fifty percent of state revenues collected in excess of the
24 "appropriation" and "expenditure" provision of this section shall be
25 deposited to the budget stabilization fund but shall not exceed four
26 percent of the total appropriations for the prior fiscal year. No
27 money shall be drawn from the budget stabilization fund except when
28 state revenues are in deficit of the "appropriation" and
29 "expenditure" provision of this section, the amount drawn shall not
30 exceed the said deficit, and shall not be withdrawn without the con-
31 currence of two-thirds of all members present in each of the two
32 houses of the legislature and thereupon presented to the governor
33 pursuant to Section 10 of Article IV.
34 Twenty-five percent of state revenues collected in excess of the
35 "appropriation" and "expenditure" provision of this section and reve-
36 nues that would exceed the limitations put forth in this section on
37 the emergency fund and the budget stabilization fund shall be depos-
38 ited to the excess revenue fund. The legislature, as it shall provide
39 by law, shall deplete the money from the excess revenue fund within
40 eighteen months from the time it was deposited by a reduction of
41 state tax rates for the next tax year; or refund pro rata on the
42 annual income tax returns; or declare a sales tax holiday that
43 exempts particular calendar days or particular goods and services
44 from imposition of the sales tax; or any combination of such reduc-
45 tion, refund or sales tax holiday.
46 The legislature, as provided by law, may deposit additional rev-
47 enues in the emergency fund and budget stabilization fund, provided
48 the amounts so deposited do not cause the limitations pursuant to
49 this section to be exceeded. All interest earned on revenues in any
50 fund shall accrue to the fund.
51 The legislature may impose an expenditure limitation upon local
52 units of government not inconsistent with the provisions of this sec-
53 tion.
54 SECTION 2. The question to be submitted to the electors of the State of
3
1 Idaho at the next general election shall be as follows:
2 "Shall Article VII, of the Constitution of the State of Idaho, be amended
3 by the addition of a new Section 18 to create a Taxpayer's Bill of Rights to
4 limit legislative appropriations and expenditures in any fiscal year to the
5 appropriations and expenditures from the previous fiscal year with allowance
6 for annual changes in the cost of living and population, to provide that any
7 bill that creates or increases a tax rate, removes a tax exemption, or creates
8 or increases a discretionary user charge after ratification of this section,
9 must be agreed to by two-thirds of all members present in each of the two
10 houses of the legislature and signed by the governor, to create the Emergency
11 Fund, the Budget Stabilization Fund and the Excess Revenue Fund, to provide
12 for deposits to the funds and withdrawal of revenues from the funds, and to
13 provide that the Legislature may impose an expenditure limitation upon local
14 units of government in a manner that is consistent with the provisions of Sec-
15 tion 18, Article VII, of the Constitution of the State of Idaho?".
16 SECTION 3. The Legislative Council is directed to prepare the statements
17 required by Section 67-453, Idaho Code, and file the same.
18 SECTION 4. The Secretary of State is hereby directed to publish this pro-
19 posed constitutional amendment and arguments as required by law.
STATEMENT OF PURPOSE
RS l2870Cl
This constitutional amendment limits General Fund appropriations to
the previous year s level plus the annual inflation rate, plus the
annual percentage increase in population. State revenues collected
in excess of the limit are distributed among three created funds;
the Emergency Fund (25%), the Budget Stabilization Fund (50%), and
the Excess Revenue Fund (25%). The Emergency Fund can be tapped
upon a declaration of emergency by the governor and a majority
vote.
The Budget Stabilization Fund can be tapped when state revenues are
in deficit of the TABOR cap in amounts up to the said deficit and
upon a two-thirds (2/3) vote. This provision smooths out the boom
and bust revenue cycles, like we have recently experienced. The
legislature may deposit additional revenues into the Emergency Fund
or Budget Stabilization Fund. Any tax or fee increase will require
a two-thirds (2/3) vote.
FISCAL IMPACT
This constitutional amendment would limit General Fund expenditures
to the previous year s level plus the annual inflation rate, plus
the percentage growth in population
Contact
Name: Rep Lenore Barrett
Phone: 332-1000
Sen Gerry Sweet
332-1000
Laird Maxwell, Idahoans for Tax Reform, 426-0358
STATEMENT OF PURPOSE/FISCAL NOTE HJR