HJR008 Childers, Doyle et al

P R E F I L E D

HJR 8 -- Tax Limitation

This proposed amendment to the state constitution changes the constitutional provisions relating to the limit on the total amount of taxes and fees which may be imposed by the General Assembly without voter approval in any fiscal year.

Effective the first full fiscal year after the effective date of this amendment, the General Assembly cannot impose any taxes or fees without voter approval which exceed the limit provided in the amendment. The limit will be calculated by the State Auditor in an amount equal to 1% of total state revenues for the second preceding fiscal year. If the state auditor determines that the limit has been exceeded, the General Assembly must reduce the state sales tax rate in the next regular session by an amount necessary to equal 3% of the total state revenue in the fiscal year preceding the fiscal year during which the 1% limit was exceeded and adopt a state budget accordingly.

The amendment also establishes a cumulative revenue limit to be calculated by the State Auditor. This limit is set by the cumulative increase in total state revenue attributable to the additional taxes and fees imposed since July 1, 1982, without voter approval or based on a modified base as prescribed in the amendment. If this cumulative increase exceeds 10% of the total state revenue in any fiscal year, the Governor is required to call a statewide election to submit to the people whether such increase will remain in effect. If the voters approve of the increase, the increase will remain and the cumulative total be set at zero. If the voters reject the increase, the General Assembly at the next regular session must decrease the state sales tax in an amount equal 10% of total state revenue in the fiscal year preceding the fiscal year in which the election occurred and adopt a state budget accordingly.