SJR 34 - Current provisions of the constitution place limits on the generation of new state revenues from new or increased taxes and fees, commonly referred to as the Hancock Amendment. This constitutional amendment, if approved by the voters, modifies several of these provisions.DEFINITION OF TOTAL STATE REVENUE
Current provisions define "total state revenues" as all general and special revenues and licenses and fees, excluding federal funds, as defined in the budget message of the governor for FY 1981. This amendment changes the relevant fiscal year to FY 2023, and excludes the amount of any tax credits. (Section 17)
TOTAL STATE REVENUE LIMIT
Current provisions place a limit on the amount of total state revenues the state may collect in a given fiscal year, currently defined as the ratio of total state revenues in FY 1981 divided by the personal income of all Missourians in calendar year 1979. This amendment changes the calculation to the ratio of total state revenues in FY 2023 divided by the personal income of all Missourians in calendar year 2021. (Section 18)
NEW STATE REVENUE LIMIT
Current provisions also prohibit the General Assembly from increasing taxes or fees in any given fiscal year without voter approval that produce new annual revenues greater than the lesser of $50 million, adjusted for inflation, or 1% of total state revenues. This amendment provides that the General Assembly shall implement no new taxes, fees, or tax changes without voter approval that increase net total state revenues by more than the lesser of $50 million, adjusted for inflation, or 1% of total state revenues.
The amendment also provides that if any tax or fee increase is implemented over multiple fiscal years, the net increase in total state revenues collected once fully implemented shall be used to determine compliance with this provision following the first year the increase is fully effective. (Section 18(e))
This constitutional amendment is identical to HJR 35 (2023).
JOSH NORBERG