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House Study Bill 232 - IntroducedA Bill ForAn Act 1proposing amendments to the Constitution of
2the State of Iowa relating to requirements for certain state
3tax law changes and creating a taxpayer relief fund.
4BE IT RESOLVED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. The following amendment to the Constitution of
2the State of Iowa is proposed:
3The Constitution of the State of Iowa is amended by adding
4the following new section to new Article XIII:
5ARTICLE XIII.
6TAXATION LIMITATIONS.
7Section 1. Two-thirds majority vote for state tax law
8changes. Passage of a bill that increases the individual
9income tax rate or the corporate income tax rate, or the rate
10of any other type of tax based upon income, shall require the
11affirmative votes of at least two-thirds of the members elected
12to each house of the general assembly. This requirement does
13not apply to taxes imposed at the option of a local government.
14Passage of a bill that establishes a new tax on any type of
15income imposed by the state shall require the affirmative votes
16of at least two-thirds of the members elected to each house of
17the general assembly.
18A lawsuit challenging the proper enactment of a bill under
19this section must be filed no later than one year following the
20enactment. If such a lawsuit is not filed within the one-year
21limit, the bill shall be considered properly enacted under this
22section.
23Each bill to which this section applies must include a
24separate provision describing the requirements for enactment
25prescribed by this section.
26The general assembly shall enact laws to implement this
27section.
28 Sec. 2. The following amendment to the Constitution of the
29State of Iowa is proposed:
30The Constitution of the State of Iowa is amended by adding
31the following new section to new Article XIII:
32ARTICLE XIII.
33TAXATION LIMITATIONS.
34Sec.2. Taxpayer relief fund. A taxpayer relief fund is
35created within the treasury for the purposes of reductions to
-1-1income tax rates, sales and use tax rates, or property taxes,
2as determined by the general assembly. Moneys in the fund
3shall be exclusively appropriated or transferred by law for
4these purposes. The general assembly shall determine the type
5of, amount of, and manner in which state moneys are credited
6to, deposited in, or transferred to the fund. The general
7assembly shall provide by law for the implementation of this
8section, including by providing for the administration of the
9fund.
10 Sec. 3.REFERRAL AND PUBLICATION. The foregoing proposed
11amendments to the Constitution of the State of Iowa are
12referred to the general assembly to be chosen at the next
13general election for members of the general assembly, and shall
14be published as provided by law for three months previous to
15the date of that election.
16EXPLANATION
17The inclusion of this explanation does not constitute agreement with
18the explanation’s substance by the members of the general assembly.
19This joint resolution proposes amendments to the
20Constitution of the State of Iowa by restricting certain state
21tax law changes and creating a taxpayer relief fund.
22RESTRICTIONS ON CERTAIN STATE TAX LAW CHANGES. The
23amendment requires a bill that increases the individual income
24tax rate or corporate income tax rate, or the rate of any
25other type of tax based upon income, to be adopted by at least
26two-thirds of the members elected to each house of the general
27assembly. In addition, the amendment requires a bill that
28establishes a new tax on any type of income imposed by the
29state to be adopted by at least two-thirds of the members
30elected to each house of the general assembly. A lawsuit
31challenging enactment of a bill subject to the two-thirds
32majority passage requirement must be filed no later than
33one year following the enactment of the bill. Finally, the
34amendment requires the general assembly to enact laws to
35implement the amendment.
-2- 1TAXPAYER RELIEF FUND. Under current law (Code section
28.57E), a taxpayer relief fund is created for purposes of
3appropriations or transfers made by the general assembly for
4tax relief or reductions in income tax rates. The amendment
5sets forth a similar provision in the Constitution of the State
6of Iowa by creating a taxpayer relief fund for the purposes
7of reductions to income tax rates, sales and use tax rates,
8or property taxes. The amendment requires the moneys in
9the taxpayer relief fund to be exclusively appropriated or
10transferred by law for the purposes of reductions to income tax
11rates, sales and use tax rates, or property taxes.
12REFERRAL. The resolution, if adopted, would be published
13and then referred to the next general assembly (91st) for
14adoption, before being submitted to the electorate for
15ratification.
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2the State of Iowa relating to requirements for certain state
3tax law changes and creating a taxpayer relief fund.
4BE IT RESOLVED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. The following amendment to the Constitution of
2the State of Iowa is proposed:
3The Constitution of the State of Iowa is amended by adding
4the following new section to new Article XIII:
5ARTICLE XIII.
6TAXATION LIMITATIONS.
7Section 1. Two-thirds majority vote for state tax law
8changes. Passage of a bill that increases the individual
9income tax rate or the corporate income tax rate, or the rate
10of any other type of tax based upon income, shall require the
11affirmative votes of at least two-thirds of the members elected
12to each house of the general assembly. This requirement does
13not apply to taxes imposed at the option of a local government.
14Passage of a bill that establishes a new tax on any type of
15income imposed by the state shall require the affirmative votes
16of at least two-thirds of the members elected to each house of
17the general assembly.
18A lawsuit challenging the proper enactment of a bill under
19this section must be filed no later than one year following the
20enactment. If such a lawsuit is not filed within the one-year
21limit, the bill shall be considered properly enacted under this
22section.
23Each bill to which this section applies must include a
24separate provision describing the requirements for enactment
25prescribed by this section.
26The general assembly shall enact laws to implement this
27section.
28 Sec. 2. The following amendment to the Constitution of the
29State of Iowa is proposed:
30The Constitution of the State of Iowa is amended by adding
31the following new section to new Article XIII:
32ARTICLE XIII.
33TAXATION LIMITATIONS.
34Sec.2. Taxpayer relief fund. A taxpayer relief fund is
35created within the treasury for the purposes of reductions to
-1-1income tax rates, sales and use tax rates, or property taxes,
2as determined by the general assembly. Moneys in the fund
3shall be exclusively appropriated or transferred by law for
4these purposes. The general assembly shall determine the type
5of, amount of, and manner in which state moneys are credited
6to, deposited in, or transferred to the fund. The general
7assembly shall provide by law for the implementation of this
8section, including by providing for the administration of the
9fund.
10 Sec. 3.REFERRAL AND PUBLICATION. The foregoing proposed
11amendments to the Constitution of the State of Iowa are
12referred to the general assembly to be chosen at the next
13general election for members of the general assembly, and shall
14be published as provided by law for three months previous to
15the date of that election.
16EXPLANATION
17The inclusion of this explanation does not constitute agreement with
18the explanation’s substance by the members of the general assembly.
19This joint resolution proposes amendments to the
20Constitution of the State of Iowa by restricting certain state
21tax law changes and creating a taxpayer relief fund.
22RESTRICTIONS ON CERTAIN STATE TAX LAW CHANGES. The
23amendment requires a bill that increases the individual income
24tax rate or corporate income tax rate, or the rate of any
25other type of tax based upon income, to be adopted by at least
26two-thirds of the members elected to each house of the general
27assembly. In addition, the amendment requires a bill that
28establishes a new tax on any type of income imposed by the
29state to be adopted by at least two-thirds of the members
30elected to each house of the general assembly. A lawsuit
31challenging enactment of a bill subject to the two-thirds
32majority passage requirement must be filed no later than
33one year following the enactment of the bill. Finally, the
34amendment requires the general assembly to enact laws to
35implement the amendment.
-2- 1TAXPAYER RELIEF FUND. Under current law (Code section
28.57E), a taxpayer relief fund is created for purposes of
3appropriations or transfers made by the general assembly for
4tax relief or reductions in income tax rates. The amendment
5sets forth a similar provision in the Constitution of the State
6of Iowa by creating a taxpayer relief fund for the purposes
7of reductions to income tax rates, sales and use tax rates,
8or property taxes. The amendment requires the moneys in
9the taxpayer relief fund to be exclusively appropriated or
10transferred by law for the purposes of reductions to income tax
11rates, sales and use tax rates, or property taxes.
12REFERRAL. The resolution, if adopted, would be published
13and then referred to the next general assembly (91st) for
14adoption, before being submitted to the electorate for
15ratification.
-3-jm/jh