Senate Joint Resolution 2010

As Passed in 2004

                  SENATE JOINT RESOLUTION       
                  (SUCCESSOR TO SSB 3170)
Passed Senate, Date               Passed House,  Date             
Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                            SENATE JOINT RESOLUTION
1 A Joint Resolution proposing an amendment to the Constitution of
2    the State of Iowa to require approval by vote of the people
3    before certain tax or fee increases take effect.
5 TLSB 6973SV 80
6 sc/sh/8
1  1    Section 1.  The following amendment to the Constitution of
1  2 the State of Iowa is proposed:
1  3    The Constitution of the State of Iowa is amended by adding
1  4 the following new sections to new Article XIII:
1  5                          ARTICLE XIII
1  8 If all tax and fee increases adopted in a fiscal year would
1  9 produce new annual revenue exceeding one percent of total
1 10 state general fund revenue received in the preceding fiscal
1 11 year, excluding transfers from other state funds, the
1 12 increases shall be submitted to the electors, starting with
1 13 the largest increase and including increases in descending
1 14 order, except the remaining increases that total one percent
1 15 or less.  All increases of any one tax or fee shall together
1 16 be regarded as one increase.  An adopted tax or fee increase
1 17 required by this article to be submitted to the electors shall
1 18 take effect only if submitted to the electors at the next
1 19 state general election and approved by a majority of the
1 20 electors voting thereon.
1 21    APPLICATION.  SEC. 2.  In this article:
1 22    1.  "Local governments" includes all political
1 23 subdivisions.
1 24    2.  "Increase" includes, but is not limited to, imposing a
1 25 new tax or fee; raising a rate or amount; repealing, reducing,
1 26 or delaying an exemption, deduction, credit, exclusion,
1 27 reduction, or indexing requirement; or broadening the base or
1 28 scope of a tax or fee in any way.
1 29    3.  "Increase" includes legislation that allows or requires
1 30 one or more local governments, with or without approval by
1 31 local electors, to impose or increase any tax on income,
1 32 sales, or property, but excludes legislation in which the only
1 33 subject matter is establishment of the state percentage of
1 34 growth for school foundation aid.
1 35    4.  "Increase" of property tax includes legislation that
2  1 has the effect of reducing total state funds transferred to
2  2 all local governments in a fiscal year in comparison with the
2  3 preceding fiscal year, taking into account all legislation
2  4 increasing or reducing such transfers.
2  5    5.  "Increase" of property tax includes legislation that
2  6 has the effect of requiring local governments to incur
2  7 aggregate net cost increases in a fiscal year, after deducting
2  8 increased transfers of state funds for the express purpose of
2  9 offsetting those cost increases.  Such increased transfers
2 10 shall be deducted under this subsection and not under
2 11 subsection 4.
2 12    6.  "New annual revenue" means the estimated net increase
2 13 over the fiscal year preceding adoption in total state general
2 14 fund revenue produced by the total of all tax and fee
2 15 increases adopted in a fiscal year, less estimated refunds
2 16 payable as a result of the increases, all as estimated for the
2 17 fiscal year in which all such increases are adopted, as if all
2 18 such increases and refunds were fully effective and entirely
2 19 implemented for that full fiscal year.  Actual amounts, if
2 20 known, shall be used instead of estimates.
2 21    7.  "Adopted" or "adoption" means that after 2006, a bill
2 22 has been passed and all requirements of article III have been
2 23 met, so that the bill would become law except for the
2 24 requirements of this article.
2 25    8.  This article does not apply to taxes and fees subject
2 26 to article VII, sections 5 and 8.
2 27    EMERGENCY.  SEC. 3.  A temporary exception to the preceding
2 28 requirements of this article shall be allowed only to this
2 29 extent and only if all these conditions are met:  (1)  the
2 30 Governor requests the General Assembly to adopt an emergency
2 31 tax increase for only one specified fiscal year; (2)  the
2 32 request specifically states the nature of the emergency, the
2 33 expenditures needed to respond to the emergency, and the
2 34 proposed tax increase to pay for the emergency expenditures
2 35 for that year; and (3)  a law declaring an emergency and
3  1 providing an emergency tax increase in accordance with the
3  2 Governor's specific request is passed by a vote of two=thirds
3  3 of all the members elected to each branch of the General
3  4 Assembly and is approved by the Governor.  Such law shall not
3  5 be passed more than four months prior to the fiscal year to
3  6 which it applies.  Such law must be enacted prior to
3  7 obligating any requested emergency expenditures.
3  8    ENFORCEMENT.  SEC. 4.  Any citizen or taxpayer may, within
3  9 two years after a tax or fee increase is adopted, bring suit
3 10 to enforce compliance with this article.  If no such suit is
3 11 filed within the two=year period, the elector approval
3 12 requirement for that tax or fee increase is negated.  The
3 13 Supreme Court shall have original jurisdiction of any such
3 14 suit.  The Supreme Court shall invalidate any increase which
3 15 should have been, but was not, submitted to the electors as
3 16 required by this article and shall order that the revenue
3 17 collected in violation of this article be refunded or applied
3 18 to reduce future taxes.  A citizen or taxpayer who brings suit
3 19 and prevails shall receive from the state the costs of the
3 20 suit, including reasonable attorney fees.
3 21    IMPLEMENTATION.  SEC. 5.  This article shall be interpreted
3 22 and implemented to achieve its purpose to increase the
3 23 electors' control of taxes and fees.  The General Assembly
3 24 shall enact laws to implement this article.
3 25    Sec. 2.  REFERRAL AND PUBLICATION.  The foregoing proposed
3 26 amendment to the Constitution of the State of Iowa is referred
3 27 to the General Assembly to be chosen at the next general
3 28 election for members of the General Assembly, and the
3 29 Secretary of State is directed to cause it to be published for
3 30 three consecutive months previous to the date of that election
3 31 as provided by law.
3 32                           EXPLANATION
3 33    This joint resolution proposes an amendment adding a new
3 34 Article XIII to the Constitution of the State of Iowa, giving
3 35 the people of Iowa the right to vote on certain adopted
4  1 increases of taxes and fees, so that the increases will not
4  2 take effect unless approved by majority vote at a state
4  3 general election.
4  4    The amendment requires that a law or laws increasing any
4  5 taxes or fees that would result in new annual revenue of more
4  6 than 1 percent of total state general fund revenue received in
4  7 the fiscal year preceding enactment of the law or laws must
4  8 receive voter approval at a state general election.  The
4  9 amendment defines "new annual revenue".  The amendment also
4 10 defines "increase".  This definition includes legislation that
4 11 allows or requires a local government to impose or increase
4 12 any tax on income, sales, or property; legislation that has
4 13 the effect of reducing total state funds transferred to all
4 14 local governments; and legislation that requires local
4 15 governments to incur aggregate net cost increases in a fiscal
4 16 year.
4 17    The amendment allows the general assembly, at the
4 18 governor's request and by two=thirds vote, to increase taxes
4 19 in emergency situations.
4 20    The amendment allows any citizen or taxpayer to bring suit
4 21 to enforce compliance with the voter approval requirement
4 22 within two years of adoption of a tax or fee increase.  The
4 23 amendment also provides that the general assembly shall enact
4 24 laws to implement the amendment.
4 25    The resolution, if adopted, will be referred to the next
4 26 general assembly.  If the next general assembly adopts the
4 27 resolution, the amendment will be submitted to the voters for
4 28 ratification.
4 29 LSB 6973SV 80
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