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HJR006..................................................by BARRETT AND WOOD
TAXPAYER 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 a tax and expenditure limitation upon local units of
government.
01/29 House intro - 1st rdg - to printing
01/30 Rpt prt - to Rev/Tax
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE HOUSE OF REPRESENTATIVES
HOUSE JOINT RESOLUTION NO. 6
BY BARRETT AND WOOD
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 TAX AND EXPENDITURE LIMITATIONS UPON LOCAL UNITS OF GOVERNMENT;
16 STATING THE QUESTION TO BE SUBMITTED TO THE ELECTORATE; DIRECTING THE LEG-
17 ISLATIVE COUNCIL TO PREPARE THE STATEMENTS REQUIRED BY LAW; AND DIRECTING
18 THE SECRETARY OF STATE TO PUBLISH THE AMENDMENT AND ARGUMENTS AS REQUIRED
19 BY LAW.
20 Be It Resolved by the Legislature of the State of Idaho:
21 SECTION 1. That Article VII of the Constitution of the State of Idaho be
22 amended by the addition thereto of a NEW SECTION, to be known and designated
23 as Section 18, Article VII, of the Constitution of the State of Idaho and to
24 read as follows:
25 SECTION 18. TAXPAYER'S BILL OF RIGHTS. Unless agreed to by two-
26 thirds of all the members present in each of the two houses of the
27 legislature and thereupon signed by the governor pursuant to Section
28 10 of Article IV, no appropriation shall be made, nor expenditure
29 authorized by the legislature, whereby the expenditure of the state
30 during any fiscal year shall exceed the sum of the total appropria-
31 tion for the previous fiscal year and the annual percentage changes
32 in the cost of living and population.
33 For the purposes of this section, "cost of living" shall mean
34 all items contained in the consumer price index for the United States
35 of America, or any comparable index, as computed by the United States
36 bureau of labor statistics or the United States department of com-
37 merce for a twelve month period of time; and "population" shall mean
38 the number of people residing in the state of Idaho, excluding armed
39 forces personnel stationed overseas, as determined by the United
40 States bureau of the census.
41 For the purposes of this section, "appropriation" and
42 "expenditure" shall apply only to those appropriations funded by tax
43 and levy collections by the state for general fund purposes, but
2
1 shall not apply to moneys deposited or drawn on the emergency fund,
2 the budget stabilization fund, or the excess revenue fund created in
3 this section.
4 Any bill that creates or increases a tax rate, removes a tax
5 exemption, or creates or increases a discretionary user charge after
6 ratification of this section, must be agreed to by two-thirds of all
7 members present in each of the two houses of the legislature and
8 thereupon be presented to the governor pursuant to Section 10 of
9 Article IV.
10 There are hereby created three funds in the state treasury: the
11 emergency fund, the budget stabilization fund, and the excess revenue
12 fund.
13 Twenty-five percent of state revenues collected in excess of the
14 "appropriation" and "expenditure" provision of this section shall be
15 deposited to the emergency fund but shall not exceed one percent of
16 the total appropriations for the prior fiscal year. No money shall be
17 drawn from the emergency fund except upon declaration of an emergency
18 by the governor and upon concurrence of a majority vote of all mem-
19 bers present in each of the two houses of the legislature and there-
20 upon be presented to the governor pursuant to Section 10 of Article
21 IV.
22 Fifty percent of state revenues collected in excess of the
23 "appropriation" and "expenditure" provision of this section shall be
24 deposited to the budget stabilization fund but shall not exceed four
25 percent of the total appropriations for the prior fiscal year. No
26 money shall be drawn from the budget stabilization fund except when
27 state revenues are in deficit of the "appropriation" and
28 "expenditure" provision of this section, the amount drawn shall not
29 exceed the said deficit, and shall not be withdrawn without the con-
30 currence of two-thirds of all members present in each of the two
31 houses of the legislature and thereupon be presented to the governor
32 pursuant to Section 10 of Article IV.
33 Twenty-five percent of state revenues collected in excess of the
34 "appropriation" and "expenditure" provision of this section and reve-
35 nues that would exceed the limitations put forth in this section on
36 the emergency fund and the budget stabilization fund shall be depos-
37 ited to the excess revenue fund. The legislature, as it shall provide
38 by law, shall deplete the money from the excess revenue fund within
39 two fiscal years from the fiscal year it was deposited by a temporary
40 or permanent reduction of state tax rates for the next tax year; or
41 refund pro rata on the annual income tax returns; or declare a sales
42 tax holiday that exempts particular calendar days or particular goods
43 and services from imposition of the sales tax; or any combination of
44 such reduction, refund or sales tax holiday.
45 The legislature, as provided by law, may deposit additional rev-
46 enues in the emergency fund and budget stabilization fund, provided
47 the amounts so deposited do not cause the limitations pursuant to
48 this section to be exceeded. All interest earned on revenues in any
49 fund shall accrue to the fund.
50 The legislature may impose tax and expenditure limitations upon
51 local units of government.
52 SECTION 2. The question to be submitted to the electors of the State of
53 Idaho at the next general election shall be as follows:
54 "Shall Article VII, of the Constitution of the State of Idaho, be amended
3
1 by the addition of a new Section 18 to create a Taxpayer's Bill of Rights to
2 limit legislative appropriations and expenditures in any fiscal year to the
3 appropriations and expenditures from the previous fiscal year with allowance
4 for annual changes in the cost of living and population, to provide that any
5 bill that creates or increases a tax rate, removes a tax exemption, or creates
6 or increases a discretionary user charge after ratification of this section,
7 must be agreed to by two-thirds of all members present in each of the two
8 houses of the Legislature and signed by the Governor, to create the Emergency
9 Fund, the Budget Stabilization Fund and the Excess Revenue Fund, to provide
10 for deposits to the funds and withdrawal of revenues from the funds, and to
11 provide that the Legislature may impose tax and expenditure limitations upon
12 local units of government?".
13 SECTION 3. The Legislative Council is directed to prepare the statements
14 required by Section 67-453, Idaho Code, and file the same.
15 SECTION 4. The Secretary of State is hereby directed to publish this pro-
16 posed constitutional amendment and arguments as required by law.
STATEMENT OF PURPOSE
RS 13678C1
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.
Example: FY2004 Total Appropriations - - $2,000,994,600. FY2005
Inflation 1.8% plus FY2005 Population Growth 1.0% for a total
of 2.8%. FY2005 General Fund spending cap would be $2,057,022,449.
Contact
Name: Representatives Barrett, Wood, and Langford
Phone: 332-1000
Senator Gerry Sweet
Phone: 332-1000
Laird Maxwell, Idahoans for Tax Reform
Phone 426-0358
STATEMENT OF PURPOSE/FISCAL NOTE HJR 006