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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
revenue increases; administrative fee authorization
Purpose
Subject to voter approval, constitutionally eliminates the exemption from the two-thirds vote requirement for legislative acts that provide for an increase in state revenues in the form of fees and assessments that are authorized by statute and set by a state officer or agency but that are not prescribed by formula, amount or limit.
Background
In 1992, the voters enacted Proposition 108 which constitutionally requires legislative acts that provide for a net increase in state revenues to be approved by a vote of two-thirds of the Members of the Senate and House of Representatives. The increased vote threshold requirement applies to legislative acts that: 1) impose a new tax; 2) increase a tax or tax rate; 3) reduce or eliminate a tax deduction, exemption, exclusion, credit or other tax exemption feature in computing tax liability; 4) increase a statutorily prescribed state fee or assessment or the maximum limit for an administratively set fee; 5) impose a new state fee or assessment or authorize a new administratively set fee; 6) eliminate an exemption from a statutorily prescribed state fee or assessment; or 7) change state tax revenue allocations among state and local governments. There are two exemptions from the increased vote threshold requirement for legislative acts that provide for an increase in state revenues in the form of: 1) the effects of inflation, increasing assessed valuation or any other similar effect that increases state revenue but is not caused by an affirmative act of the Legislature; and 2) fees and assessments authorized by statute and set by a state officer or agency but that are not prescribed by formula, amount or limit (Ariz. Const. art. 9, ยง 22).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Eliminates the exemption from the two-thirds vote requirement for legislative acts that provide for an increase in state revenues in the form of fees and assessments that are authorized by statute and set by a state officer or agency but that are not prescribed by formula, amount or limit.
2. Requires the Secretary of State to submit the proposition to the voters at the next general election.
3. Makes technical changes.
4. Becomes effective if approved by the voters and on proclamation of the Governor.
Prepared by Senate Research
January 29, 2025
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