2004 Legislation
Print Friendly

HOUSE JOINT RESOLUTION NO. 7 – Taxpayer Bill of Rights

HOUSE JOINT RESOLUTION NO. 7

View Bill Status

View Bill Text

View Statement of Purpose / Fiscal Impact



Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Bill Status



HJR007...........................................................by BARRETT
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 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

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                HOUSE JOINT RESOLUTION NO. 7
                                                                        
                                         BY BARRETT
                                                                        
  1                                  A JOINT RESOLUTION
  2    PROPOSING AN AMENDMENT TO ARTICLE VII, OF THE CONSTITUTION  OF  THE  STATE  OF
  3        IDAHO,  RELATING  TO FINANCE AND REVENUE, BY THE ADDITION OF A NEW SECTION
  4        19, ARTICLE VII, OF THE CONSTITUTION OF THE STATE OF IDAHO, RELATING TO  A
  5        TAXPAYER'S BILL OF RIGHTS TO LIMIT LEGISLATIVE APPROPRIATIONS AND EXPENDI-
  6        TURES  IN  ANY FISCAL YEAR TO THE APPROPRIATIONS AND EXPENDITURES FROM THE
  7        PREVIOUS FISCAL YEAR WITH ALLOWANCE FOR ANNUAL CHANGES IN THE COST OF LIV-
  8        ING AND POPULATION, TO CREATE THE EMERGENCY FUND, THE BUDGET STABILIZATION
  9        FUND AND THE EXCESS REVENUE FUND, TO PROVIDE FOR DEPOSITS TO THE FUNDS AND
 10        WITHDRAWAL OF REVENUES FROM THE FUNDS AND TO PROVIDE THAT THE  LEGISLATURE
 11        MAY IMPOSE TAX AND EXPENDITURE LIMITATIONS UPON LOCAL UNITS OF GOVERNMENT;
 12        STATING THE QUESTION TO BE SUBMITTED TO THE ELECTORATE; DIRECTING THE LEG-
 13        ISLATIVE  COUNCIL TO PREPARE THE STATEMENTS REQUIRED BY LAW; AND DIRECTING
 14        THE SECRETARY OF STATE TO PUBLISH THE AMENDMENT AND ARGUMENTS AS  REQUIRED
 15        BY LAW.
                                                                        
 16    Be It Resolved by the Legislature of the State of Idaho:
                                                                        
 17        SECTION  1.  That Article VII of the Constitution of the State of Idaho be
 18    amended by the addition thereto of a NEW SECTION, to be known  and  designated
 19    as  Section  19, Article VII, of the Constitution of the State of Idaho and to
 20    read as follows:
                                                                        
 21             SECTION 19.  TAXPAYER'S BILL OF RIGHTS --  SPENDING  LIMITATION.
 22        Unless  agreed to by two-thirds of all the members present in each of
 23        the two houses of the legislature and thereupon signed by the  gover-
 24        nor  pursuant  to Section 10 of Article IV, no appropriation shall be
 25        made, nor expenditure authorized  by  the  legislature,  whereby  the
 26        expenditure  of the state during any fiscal year shall exceed the sum
 27        of the total appropriation for  the  previous  fiscal  year  and  the
 28        annual percentage changes in the cost of living and population.
 29             For  the  purposes  of this section, "cost of living" shall mean
 30        all items contained in the consumer price index for the United States
 31        of America, or any comparable index, as computed by the United States
 32        bureau of labor statistics or the United States  department  of  com-
 33        merce  for a twelve month period of time; and "population" shall mean
 34        the number of people residing in the state of Idaho, excluding  armed
 35        forces  personnel  stationed  overseas,  as  determined by the United
 36        States bureau of the census.
 37             For  the  purposes  of   this   section,   "appropriation"   and
 38        "expenditure"  shall apply only to those appropriations funded by tax
 39        and levy collections by the state  for  general  fund  purposes,  but
 40        shall  not  apply to moneys deposited or drawn on the emergency fund,
 41        the budget stabilization fund, or the excess revenue fund created  in
 42        this section.
 43             There  are hereby created three funds in the state treasury: the
                                                                        
                                           2
                                                                        
  1        emergency fund, the budget stabilization fund, and the excess revenue
  2        fund.
  3             Twenty-five percent of state revenues collected in excess of the
  4        "appropriation" and "expenditure" provision of this section shall  be
  5        deposited  to  the emergency fund but shall not exceed one percent of
  6        the total appropriations for the prior fiscal year. No money shall be
  7        drawn from the emergency fund except upon declaration of an emergency
  8        by the governor and upon concurrence of a majority vote of  all  mem-
  9        bers  present in each of the two houses of the legislature and there-
 10        upon be presented to the governor pursuant to Section 10  of  Article
 11        IV.
 12             Fifty  percent  of  state  revenues  collected  in excess of the
 13        "appropriation" and "expenditure" provision of this section shall  be
 14        deposited  to the budget stabilization fund but shall not exceed four
 15        percent of the total appropriations for the  prior  fiscal  year.  No
 16        money  shall  be drawn from the budget stabilization fund except when
 17        state  revenues  are  in   deficit   of   the   "appropriation"   and
 18        "expenditure"  provision  of this section, the amount drawn shall not
 19        exceed the said deficit, and shall not be withdrawn without the  con-
 20        currence  of  two-thirds  of  all  members present in each of the two
 21        houses of the legislature and thereupon be presented to the  governor
 22        pursuant to Section 10 of Article IV.
 23             Twenty-five percent of state revenues collected in excess of the
 24        "appropriation" and "expenditure" provision of this section and reve-
 25        nues  that  would exceed the limitations put forth in this section on
 26        the emergency fund and the budget stabilization fund shall be  depos-
 27        ited to the excess revenue fund. The legislature, as it shall provide
 28        by  law,  shall deplete the money from the excess revenue fund within
 29        two fiscal years from the fiscal year it was deposited by a temporary
 30        or permanent reduction of state tax rates for the next tax  year;  or
 31        refund  pro rata on the annual income tax returns; or declare a sales
 32        tax holiday that exempts particular calendar days or particular goods
 33        and services from imposition of the sales tax; or any combination  of
 34        such reduction, refund or sales tax holiday.
 35             The legislature, as provided by law, may deposit additional rev-
 36        enues  in  the emergency fund and budget stabilization fund, provided
 37        the amounts so deposited do not cause  the  limitations  pursuant  to
 38        this  section  to be exceeded. All interest earned on revenues in any
 39        fund shall accrue to the fund.
 40             The legislature may impose tax and expenditure limitations  upon
 41        local units of government.
                                                                        
 42        SECTION  2.  The  question to be submitted to the electors of the State of
 43    Idaho at the next general election shall be as follows:
 44        "Shall Article VII, of the Constitution of the State of Idaho, be  amended
 45    by  the  addition of a new Section 19 to create a Taxpayer's Bill of Rights to
 46    limit legislative appropriations and expenditures in any fiscal  year  to  the
 47    appropriations  and  expenditures from the previous fiscal year with allowance
 48    for annual changes in the cost of living and population, to create  the  Emer-
 49    gency Fund, the Budget Stabilization Fund and the Excess Revenue Fund, to pro-
 50    vide  for deposits to the funds and withdrawal of revenues from the funds, and
 51    to provide that the Legislature may impose  tax  and  expenditure  limitations
 52    upon local units of government?".
                                                                        
 53        SECTION  3.  The Legislative Council is directed to prepare the statements
                                                                        
                                           3
                                                                        
  1    required by Section 67-453, Idaho Code, and file the same.
                                                                        
  2        SECTION 4.  The Secretary of State is hereby directed to publish this pro-
  3    posed constitutional amendment and arguments as required by law.

Statement of Purpose / Fiscal Impact


REPRINT    REPRINT    REPRINT    REPRINT   REPRINT   REPRINT
                       STATEMENT OF PURPOSE
                             RS 13826

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. 
                          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
Phone: 332-1000
      Senator Gerry Sweet
Phone: 332-1000
      Laird Maxwell, Idahoans for Tax Reform
Phone  426-0358 



STATEMENT OF PURPOSE/FISCAL NOTE                    HJR 7