Senate Amendment 5206
PAG LIN
1 1 Amend Senate Joint Resolution 2010 as follows:
1 2 #1. By striking everything after the resolving
1 3 clause and inserting the following:
1 4 <Section 1. The following amendment to the
1 5 Constitution of the State of Iowa is proposed:
1 6 The Constitution of the State of Iowa is amended by
1 7 adding the following new sections to new Article XIII:
1 8 ARTICLE XIII
1 9 PEOPLE'S RIGHT TO VOTE ON TAX OR FEE INCREASES
1 10 PEOPLE'S RIGHT TO VOTE ON TAX OR FEE INCREASES.
1 11 SECTION 1. If all tax and fee increases adopted in a
1 12 fiscal year would produce new annual revenue exceeding
1 13 one percent of total state general fund revenue
1 14 received in the preceding fiscal year, excluding
1 15 transfers from other state funds, the increases shall
1 16 be submitted to the electors, starting with the
1 17 largest increase and including increases in descending
1 18 order, except the remaining increases that total one
1 19 percent or less. All increases of any one tax or fee
1 20 shall together be regarded as one increase. An
1 21 adopted tax or fee increase required by this article
1 22 to be submitted to the electors shall take effect only
1 23 if submitted to the electors at the next state general
1 24 election and approved by a majority of the electors
1 25 voting thereon.
1 26 APPLICATION. SEC. 2. In this article:
1 27 1. "Local governments" includes all political
1 28 subdivisions.
1 29 2. "Increase" includes, but is not limited to,
1 30 imposing a new tax or fee; raising a rate or amount;
1 31 repealing, reducing, or delaying an exemption,
1 32 deduction, credit, exclusion, reduction, or indexing
1 33 requirement; or broadening the base or scope of a tax
1 34 or fee in any way.
1 35 3. "Increase" includes legislation that allows or
1 36 requires one or more local governments, with or
1 37 without approval by local electors, to impose or
1 38 increase any tax on income, sales, or property, but
1 39 excludes legislation in which the only subject matter
1 40 is establishment of the state percentage of growth for
1 41 school foundation aid.
1 42 4. "Increase" of property tax includes legislation
1 43 that has the effect of reducing total state funds
1 44 transferred to all local governments in a fiscal year
1 45 in comparison with the preceding fiscal year, taking
1 46 into account all legislation increasing or reducing
1 47 such transfers.
1 48 5. "Increase" of property tax includes legislation
1 49 that has the effect of requiring local governments to
1 50 incur aggregate net cost increases in a fiscal year,
2 1 after deducting increased transfers of state funds for
2 2 the express purpose of offsetting those cost
2 3 increases. Such increased transfers shall be deducted
2 4 under this subsection and not under subsection 4.
2 5 6. "New annual revenue" means the estimated net
2 6 increase over the fiscal year preceding adoption in
2 7 total state general fund revenue produced by the total
2 8 of all tax and fee increases adopted in a fiscal year,
2 9 less estimated refunds payable as a result of the
2 10 increases, all as estimated for the fiscal year in
2 11 which all such increases are adopted, as if all such
2 12 increases and refunds were fully effective and
2 13 entirely implemented for that full fiscal year.
2 14 Actual amounts, if known, shall be used instead of
2 15 estimates. "New annual revenue" does not include
2 16 revenue that the general assembly intends to
2 17 appropriate for purposes of public safety or homeland
2 18 security.
2 19 7. "Adopted" or "adoption" means that after 2006,
2 20 a bill has been passed and all requirements of article
2 21 III have been met, so that the bill would become law
2 22 except for the requirements of this article.
2 23 8. This article does not apply to taxes and fees
2 24 subject to article VII, sections 5 and 8.
2 25 EMERGENCY. SEC. 3. A temporary exception to the
2 26 preceding requirements of this article shall be
2 27 allowed only to this extent and only if all these
2 28 conditions are met: (1) the Governor requests the
2 29 General Assembly to adopt an emergency tax increase
2 30 for only one specified fiscal year; (2) the request
2 31 specifically states the nature of the emergency, the
2 32 expenditures needed to respond to the emergency, and
2 33 the proposed tax increase to pay for the emergency
2 34 expenditures for that year; and (3) a law declaring
2 35 an emergency and providing an emergency tax increase
2 36 in accordance with the Governor's specific request is
2 37 passed by a vote of two=thirds of all the members
2 38 elected to each branch of the General Assembly and is
2 39 approved by the Governor. Such law shall not be
2 40 passed more than four months prior to the fiscal year
2 41 to which it applies. Such law must be enacted prior
2 42 to obligating any requested emergency expenditures.
2 43 ENFORCEMENT. SEC. 4. Any citizen or taxpayer may,
2 44 within two years after a tax or fee increase is
2 45 adopted, bring suit to enforce compliance with this
2 46 article. If no such suit is filed within the two=year
2 47 period, the elector approval requirement for that tax
2 48 or fee increase is negated. The Supreme Court shall
2 49 have original jurisdiction of any such suit. The
2 50 Supreme Court shall invalidate any increase which
3 1 should have been, but was not, submitted to the
3 2 electors as required by this article and shall order
3 3 that the revenue collected in violation of this
3 4 article be refunded or applied to reduce future taxes.
3 5 A citizen or taxpayer who brings suit and prevails
3 6 shall receive from the state the costs of the suit,
3 7 including reasonable attorney fees.
3 8 CONTINGENT EFFECTIVE DATE. SEC. 5. This article
3 9 shall first take effect January 1 following the
3 10 regular session of the General Assembly in which all
3 11 of the following has occurred:
3 12 1. The General Assembly fully funds all statutory
3 13 obligations relating to kindergarten through grade
3 14 twelve funding.
3 15 2. The General Assembly fully funds all property
3 16 tax credits provided by statute.
3 17 3. The General Assembly fully funds the
3 18 implementation of all state mandates on local
3 19 governments or, in the alternative, the General
3 20 Assembly repeals all state mandates on local
3 21 governments that are not fully funded by the General
3 22 Assembly.
3 23 IMPLEMENTATION. SEC. 6. This article shall be
3 24 interpreted and implemented to achieve its purpose to
3 25 increase the electors' control of taxes and fees. The
3 26 General Assembly shall enact laws to implement this
3 27 article.
3 28 Sec. 2. REFERRAL AND PUBLICATION. The foregoing
3 29 proposed amendment to the Constitution of the State of
3 30 Iowa is referred to the General Assembly to be chosen
3 31 at the next general election for members of the
3 32 General Assembly, and the Secretary of State is
3 33 directed to cause it to be published for three
3 34 consecutive months previous to the date of that
3 35 election as provided by law.>
3 36
3 37
3 38
3 39 MICHAEL E. GRONSTAL
3 40
3 41
3 42
3 43 KEITH A. KREIMAN
3 44
3 45
3 46
3 47 JOHN P. KIBBIE
3 48
3 49
3 50
4 1 EUGENE S. FRAISE
4 2 SJR 2010.201 80
4 3 sc/sh
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