SJR 2003 (LSB 5022SV (1) 90)

SENATE JOINT RESOLUTION 2003

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO SSB 3142)

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 requiring a single rate for individual income taxes.

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 or legal and special reserves, 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 or legal and special reserves 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.  Single individual income tax rate.  A tax on income or based upon income for individuals shall be imposed at a single rate if imposed, and shall not be imposed at a graduated rate for individuals. There shall not be more than one income tax rate above zero imposed by the state for state purposes on an individual at any one time.
    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 requiring a single rate for individual income taxes.
   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 or legal and special reserves, 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 or legal and special reserves 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.
   SINGLE INDIVIDUAL INCOME TAX RATE. Under the amendment, a tax on income or based upon income for individuals shall be imposed at a single rate if imposed, and a graduated rate of taxation on such income is prohibited. The amendment prohibits more than one income tax rate above zero imposed by the state for state purposes on an individual at any one time.
   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.