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Tax Limitation Amendment
The following model legislation was drafted and is being promoted by the American Legislative Exchange Council (ALEC), an organization comprising of nearly 2,400 state legislators:
SUPER-MAJORITY ACT Summary
Super-majority requirements are based
on the premise that tax increases fuel excessive government spending.
Therefore, to more effectively control the budgetary process, the ability
to raise taxes or enact new taxes should be made as politically difficult
as possible, require broad consesus, and be held to a high standard
of accountability.
This Act calls for a consitutional
provision requiring all tax and license fee impositions and increases
to be approved by three fifths of all members of each House. It provides
for an exemption if there are insufficient revenues to pay interest
on the state's debt.
Model Legislation
{Title, enacting clause, etc.}
"An Act concurring in a proposed
amendment to the Constitution of the State relating to the imposition
of taxes or license fees."
WHEREAS, an amendment to the Constitution
of the State was proposed in the (session number) Legislature, being
Chapter (number), Volume (number), as follows:
This Act may be cited as an amendment
to the State Constitution relating to the imposition of taxes or license
fees.
Be it enacted by the Legislature (two-thirds
of all members elected to each House thereof concurring therein):
Section 1. Amend Article (number)
of the Constitution of the state by adding a new Section thereto as
follows:
(A) Imposition or levy of new taxes
or license fee.
(1) No tax or license fee may be imposed
or levied except pursuant to an act of the legislature adopted with
the concurrence of three-fifths of all members of each House.
(2) This amendment shall not apply
to any tax or license fee authorized by an act of the legislature which
has not taken full effect upon the effective date of this bill.
(B) Limitation on increase of rate
of taxes and license fees.
(1) The effective rate of any tax levied
or license fee imposed may not be increased except pursuant to an act
of the legislature adopted with the concurrence of three-fifths of all
members of each House.
(C) Exemption to meet obligation under
faith and credit pledge; allocation of public monies to meet such an
obligation if revenues are not sufficient to meet such pledge.
(1) Prior to the beginning of each
fiscal year of the state, the legislature shall appropriate revenues
to pay interest on its debt to which it has pledged its faith and credit
and which interest is payable in the year for which such appropriation
is made and to pay the principal of such debt, payable in such year,
whether at maturity or otherwise. To the extent that insufficient revenues
are provided to pay the principal and interest on such debt when due
and payable, the first monies thereafter received by the state shall
be set aside and applied to the payment of the principal and interest
on such debt. To make up for such insufficient revenues, the legislature
may increase the rate of taxes and fees without regard to the limitations
of Subsection (A) and Subsection (B) of Section 1, hereof after the
failure to pay when due the principal of and interest on such debt;
and
WHEREAS the said proposed amendment
was adopted by two-thirds of all members elected to each House of the
(session number) legislature;
NOW THEREFORE:
Be it resolved by the legislature (two-thirds
of all members elected to each House thereof concurring therein):
Said proposed amendment is hereby adopted,
and shall forthwith become a part of the Constitution of the state.
Section 2. {Severability clause.}
Section 3. {Repealer clause.}
Section 4. {Effective date.}
Copyright © 1998, 1999, 2000 A.L.E.C.
ALL RIGHTS RESERVED
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