Print Friendly HOUSE JOINT RESOLUTION NO. 7 – Taxpayer Bill of Rights
HOUSE JOINT RESOLUTION NO. 7
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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
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE HOUSE OF REPRESENTATIVES
HOUSE JOINT RESOLUTION NO. 7
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
1 emergency fund, the budget stabilization fund, and the excess revenue
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
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
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.
REPRINT REPRINT REPRINT REPRINT REPRINT REPRINT
STATEMENT OF PURPOSE
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
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.
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.
Name: Representatives Barrett
Senator Gerry Sweet
Laird Maxwell, Idahoans for Tax Reform
STATEMENT OF PURPOSE/FISCAL NOTE HJR 7