HJR1005
An Amendment To The Arkansas Constitution To Create The "arkansas Taxpayer Bill Of Rights".
Last Action (May 1, 2023): Died in House Committee at Sine Die Adjournment
Sponsors
AI-Generated Summary
This bill proposes a constitutional amendment titled the 'Arkansas Taxpayer Bill of Rights' to reform state revenue collection and expenditure policies. It mandates that the General Assembly must not engage in deficit spending and limits annual general revenue expenditure increases to 3% compared to the previous fiscal year. Any new taxes, fees, or increases to existing ones require a three-fourths vote of both houses of the General Assembly or voter approval. The proposal establishes a 'Catastrophic Reserve Fund' for emergencies and a 'Budget Stabilization Trust Fund' to manage revenue fluctuations. If revenues exceed the 3% growth cap after these reserve funds are filled, the surplus must be returned to taxpayers through temporary income or sales tax reductions. Additionally, it repeals an existing constitutional provision regarding tax increases and sets an effective date of January 1, 2025.
Potential Impact Analysis
Who Might Benefit?
Taxpayers would benefit from the potential for temporary tax rate reductions when the state experiences revenue surpluses. Additionally, proponents of fiscal conservatism and those advocating for limited government spending would benefit from the constitutionally mandated budget caps and the requirement for a supermajority vote to increase taxes or fees, which provides greater protection against legislative tax hikes.
Who Might Suffer?
State agencies, public programs, and essential services may be negatively impacted if the 3% cap on expenditure growth limits the state's ability to adjust funding to meet rising costs, population growth, or increased demand for services. Policymakers and government administrators might find their ability to respond to immediate or shifting fiscal needs constrained by the rigid requirements for reserve fund transfers and the high voting threshold required for revenue adjustments.
Get Notified
Receive an email when this bill's status changes.