2003 Legislation
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HOUSE JOINT RESOLUTION NO. 2 – Taxpayer’s bill of rights

HOUSE JOINT RESOLUTION NO. 2

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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

Bill Text


                                                                        
                                                                        
  ||||              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 / Fiscal Impact


                       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