SJR 14 (LSB 2537SV (2) 90)

SENATE JOINT RESOLUTION 14

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO SSB 1207)

SENATE JOINT RESOLUTION

A Joint Resolution proposing amendments to the Constitution of the State of Iowa relating to requirements for certain state tax law changes and creating a taxpayer relief fund.

BE IT RESOLVED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  The following amendment to the Constitution of the State of Iowa is proposed:
   The Constitution of the State of Iowa is amended by adding the following new section to new Article XIII:

ARTICLE XIII.
TAXATION LIMITATIONS.

   Section 1.  Two-thirds majority vote for state tax law changes.  Passage of a bill that increases the individual income tax rate or the corporate income tax rate, or the rate of any other type of tax based upon income, shall require the affirmative votes of at least two-thirds of the members elected to each house of the general assembly. This requirement does not apply to taxes imposed at the option of a local government.
   Passage of a bill that establishes a new tax on any type of income imposed by the state shall require the affirmative votes of at least two-thirds of the members elected to each house of the general assembly.
   A lawsuit challenging the proper enactment of a bill under this section must be filed no later than one year following the enactment. If such a lawsuit is not filed within the one-year limit, the bill shall be considered properly enacted under this section.
   Each bill to which this section applies must include a separate provision describing the requirements for enactment prescribed by this section.
   The general assembly shall enact laws to implement this section.
    Sec. 2.  The following amendment to the Constitution of the State of Iowa is proposed:
   The Constitution of the State of Iowa is amended by adding the following new section to new Article XIII:

ARTICLE XIII.
TAXATION LIMITATIONS.

   Sec. 2.  Taxpayer relief fund.  A taxpayer relief fund is created within the treasury for the purposes of reductions to income tax rates or sales and use tax rates, as determined by the general assembly. Moneys in the fund shall be exclusively appropriated or transferred by law for these purposes. The general assembly shall determine the type of, amount of, and manner in which state moneys are credited to, deposited in, or transferred to the fund. The general assembly shall provide by law for the implementation of this section, including by providing for the administration of the fund.
    Sec. 3.
  REFERRAL AND PUBLICATION.
  The foregoing proposed amendments to the Constitution of the State of Iowa are referred to the general assembly to be chosen at the next general election for members of the general assembly, and shall be published as provided by law for three months previous to the date of that election.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This joint resolution proposes amendments to the Constitution of the State of Iowa by restricting certain state tax law changes and creating a taxpayer relief fund.
   RESTRICTIONS ON CERTAIN STATE TAX LAW CHANGES. The amendment requires a bill that increases the individual income tax rate or corporate income tax rate, or the rate of any other type of tax based upon income, to be adopted by at least two-thirds of the members elected to each house of the general assembly. In addition, the amendment requires a bill that establishes a new tax on any type of income imposed by the state to be adopted by at least two-thirds of the members elected to each house of the general assembly. A lawsuit challenging enactment of a bill subject to the two-thirds majority passage requirement must be filed no later than one year following the enactment of the bill. Finally, the amendment requires the general assembly to enact laws to implement the amendment.
   TAXPAYER RELIEF FUND. Under current law (Code section 8.57E), a taxpayer relief fund is created for purposes of appropriations or transfers made by the general assembly for tax relief or reductions in income tax rates. The amendment sets forth a similar provision in the Constitution of the State of Iowa by creating a taxpayer relief fund for the purposes of reductions to income tax rates or sales and use tax rates. The amendment requires the moneys in the taxpayer relief fund to be exclusively appropriated or transferred by law for the purposes of reductions to income tax rates or sales and use tax rates.
   REFERRAL. The resolution, if adopted, would be published and then referred to the next general assembly (91st) for adoption, before being submitted to the electorate for ratification.