REFERENCE TITLE: tax expenditures; rates; supermajority vote

State of Arizona

House of Representatives

Fifty-fifth Legislature

First Regular Session

2021

HCR 2040

Introduced by

Representatives Fernandez: Andrade, Epstein, Salman, Terán

A CONCURRENT RESOLUTION

Proposing an amendment to the constitution of Arizona; amending article IX, constitution of arizona, by adding section 22.1; relating to tax legislation.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it resolved by the House of Representatives of the State of Arizona, the Senate concurring:

1. Article IX, Constitution of Arizona, is proposed to be amended by adding section 22.1 as follows if approved by the voters and on proclamation of the Governor:

22.1. Vote required to enact or increase tax expenditures: reduction in tax rate; application; definition

Section 22.1. A. A measure that provides for a net decrease in state revenues, as described in subsection B of this section, is effective on the affirmative vote of at least two-thirds of the members of each house of the legislature.  If the measure receives such an affirmative vote, it becomes effective immediately on the signature of the governor as provided by article IV, part 1, section 1. If the governor vetoes the measure, the measure does not become effective unless it is subsequently approved by an affirmative vote of at least three-fourths of the members of each house of the legislature.

B. This section applies to any measure that provides for a net decrease in state revenues in the form of:

1. An enactment of a new tax expenditure.

2. An increase in the allowable amount of an existing tax expenditure.

3. An increase in the number of taxpayers that potentially qualify for a tax expenditure.

4. A reduction in any tax rate.

C. Each measure to which this section applies shall include a separate provision describing the requirements for enactment prescribed by this section.

D. For the purposes of this section, "tax expenditure":

1. Means any tax provision in state law that exempts, in whole or in part, any person, income, good, service or property from the impact of established taxes and tax classifications, including deductions, subtractions, exclusions, exemptions, allowances and credits.

2. Does not include a provision of law that either:

(a) Prevents or avoids unintended consequences from the application of accounting, legal or other technical requirements.

(b) Reflects the requirements of the constitution of the United States or the constitution of Arizona.

2. The Secretary of State shall submit this proposition to the voters at the next general election as provided by article XXI, Constitution of Arizona.