Print Friendly HOUSE JOINT RESOLUTION NO. 1 – Taxpayer’s Bill of Rights
HOUSE JOINT RESOLUTION NO. 1
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HJR001..................................................by BARRETT AND WOOD
TAXPAYER'S BILL OF RIGHTS - Proposes an amendment to the Constitution of
the State of Idaho to create a Taxpayer's Bill of Rights for the purpose of
limiting legislative appropriations and expenditures in any fiscal year to
the sum of the total appropriation for the previous fiscal year and the
average of the annual percentage changes of the three immediately preceding
calendar years in the cost of living and population; to provide
definitions; to create the Taxpayers' Reserve Fund; to provide for
maintenance of a Budget Stabilization Fund; to provide for deposit of
certain state revenues collected in excess of appropriations and
expenditures to the Taxpayers' Reserve Fund; to provide for withdrawal of
moneys from the Taxpayers' Reserve Fund; to provide for transfers of moneys
by operation of law as such exist on December 31, 2006; to require a
two-thirds majority vote for any increase in a discretionary user charge or
for transfers of moneys by operation of law created on and after January 1,
2007; and to provide exemptions from expenditure limits.
01/28 House intro - 1st rdg - to printing
01/31 Rpt prt - to Rev/Tax
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
IN THE HOUSE OF REPRESENTATIVES
HOUSE JOINT RESOLUTION NO. 1
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, RELATING TO A
4 TAXPAYER'S BILL OF RIGHTS TO LIMIT LEGISLATIVE APPROPRIATIONS AND EXPENDI-
5 TURES IN ANY FISCAL YEAR TO THE SUM OF THE TOTAL APPROPRIATION FOR THE
6 PREVIOUS FISCAL YEAR AND THE AVERAGE OF THE ANNUAL PERCENTAGE CHANGES OF
7 THE THREE IMMEDIATELY PRECEDING CALENDAR YEARS IN THE COST OF LIVING AND
8 POPULATION, TO PROVIDE DEFINITIONS, TO CREATE THE TAXPAYERS' RESERVE FUND,
9 TO PROVIDE FOR MAINTENANCE OF A BUDGET STABILIZATION FUND, TO PROVIDE FOR
10 DEPOSIT OF CERTAIN STATE REVENUES COLLECTED IN EXCESS OF APPROPRIATIONS
11 AND EXPENDITURES TO THE TAXPAYERS' RESERVE FUND, TO PROVIDE FOR WITHDRAWAL
12 OF MONEYS FROM THE TAXPAYERS' RESERVE FUND, TO PROVIDE FOR TRANSFERS OF
13 MONEYS BY OPERATION OF LAW AS SUCH EXIST ON DECEMBER 31, 2006, TO REQUIRE
14 A TWO-THIRDS MAJORITY VOTE FOR ANY INCREASE IN A DISCRETIONARY USER CHARGE
15 OR FOR TRANSFERS OF MONEYS BY OPERATION OF LAW CREATED ON AND AFTER JANU-
16 ARY 1, 2007, AND TO PROVIDE EXEMPTIONS FROM EXPENDITURE LIMITS; STATING
17 THE QUESTION TO BE SUBMITTED TO THE ELECTORATE; DIRECTING THE LEGISLATIVE
18 COUNCIL TO PREPARE THE STATEMENTS REQUIRED BY LAW; AND DIRECTING THE SEC-
19 RETARY OF STATE TO PUBLISH THE AMENDMENT AND ARGUMENTS AS REQUIRED 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 -- SPENDING LIMITATION.
26 Unless agreed to by two-thirds of all the members present in each of
27 the two houses of the legislature and thereupon signed by the gover-
28 nor pursuant to section 10 of article IV, no appropriation shall be
29 made, nor expenditure authorized by the legislature, whereby the
30 expenditure of the state during any fiscal year shall exceed the sum
31 of the total appropriation for the previous fiscal year and the aver-
32 age of the annual percentage changes of the three immediately preced-
33 ing calendar years 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
1 and levy collections by the state for general fund purposes, but
2 shall not apply to moneys deposited or drawn on the taxpayers'
3 reserve fund, hereby created in this section for the purpose of
4 refunding moneys to taxpayers from certain state revenues collected
5 in excess of appropriation and expenditure limits.
6 The legislature shall maintain a budget stabilization fund
7 whereby up to a maximum of one percent of the actual general fund
8 collections of the fiscal year just ended shall be deposited when
9 receipts to the general fund for the fiscal year just ended have
10 exceeded the receipts of the previous fiscal year by more than four
11 percent, provided that the amount of moneys in the budget stabiliza-
12 tion fund shall not exceed five percent of the total general fund
13 receipts for the fiscal year just ended. Moneys may be drawn from the
14 budget stabilization fund as provided by law.
15 State revenues collected in excess of the "appropriation" and
16 "expenditure" provision of this section and revenues that would
17 exceed the limitations put forth in this section on the budget stabi-
18 lization fund, shall be deposited to the taxpayers' reserve fund. The
19 legislature shall deplete the moneys from the taxpayers' reserve fund
20 within two fiscal years from the fiscal year they were deposited,
21 provided that the total amount of moneys in the taxpayers' reserve
22 fund exceeds one percent of the general fund total appropriations for
23 the previous fiscal year. No money shall be drawn from the taxpayers'
24 reserve fund except for the purpose of refunding moneys to the tax-
25 payers by a temporary or permanent reduction of state tax rates for
26 the next ensuing tax year; or to refund pro rata on annual income tax
27 returns; or by declaration of a sales tax holiday that exempts par-
28 ticular calendar days or particular goods and services from imposi-
29 tion of the sales tax; or any combination of any reduction, refund or
30 sales tax holiday as the legislature shall provide by law.
31 Any transfers of moneys by operation of law from any funds or
32 accounts in existence on December 31, 2006, whereby moneys are first
33 transferred by operation of law for stated purposes and any remaining
34 moneys are deposited to the general fund, shall be exempt from the
35 limitations provided in this section. On and after January 1, 2007,
36 any increase of a discretionary user charge, or any new fund, account
37 or additional provision of law authorizing or increasing transfer of
38 moneys whereby moneys are first transferred by operation of law for
39 stated purposes and any remaining moneys are deposited to the general
40 fund, shall require a two-thirds majority vote of all members present
41 in each of the two houses of the legislature and thereupon shall be
42 presented to the governor pursuant to section 10 of article IV of the
43 constitution of the state of Idaho.
44 Any expenditure by the state which provides a program of
45 replacement of revenues by the state from the general fund as tax
46 relief for a political subdivision of the state, or any expenditure
47 by the state to pay deficiency warrants issued for emergency expendi-
48 tures declared by the governor, shall be exempt from the limitations
49 provided in this section.
50 SECTION 2. The question to be submitted to the electors of the State of
51 Idaho at the next general election shall be as follows:
52 "Shall Article VII, of the Constitution of the State of Idaho, be amended
53 by the addition of a new Section 18, Article VII, relating to a taxpayer's
54 bill of rights to limit legislative appropriations and expenditures in any
1 fiscal year to the sum of the total appropriation for the previous fiscal year
2 and the average of the annual percentage changes of the three immediately pre-
3 ceding calendar years in the cost of living and population; to provide defini-
4 tions; to create the Taxpayers' Reserve Fund; to provide for maintenance of a
5 Budget Stabilization Fund; to provide for deposit of certain state revenues
6 collected in excess of appropriations and expenditures to the Taxpayers'
7 Reserve Fund; to provide for withdrawal of moneys from the Taxpayers' Reserve
8 Fund; to provide for transfers of moneys by operation of law as such exist on
9 December 31, 2006; to require a two-thirds majority vote for any increase in a
10 discretionary user charge or for transfers of moneys by operation of law cre-
11 ated on and after January 1, 2007; and to provide exemptions from expenditure
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
State revenues collected in 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 cycles, like we have recently experienced. The
legislature may deposit additional revenues in 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: FY2005 total appropriations $2,082,138,300.
FY2006 inflation 1.9% plus FY 2006 population growth 1.5% for a
total of 3.4%. FY2006 General Fund spending cap would be
Name: Rep Lenore Hardy Barrett, Rep JoAn Wood
Laird Maxwell, Idahoans for Tax Reform
STATEMENT OF PURPOSE/FISCAL NOTE HJR 1