Arkansas 2025 Regular Session

Arkansas House Bill HJR1005 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	Stricken language would be deleted from and underlined language would be added to the Arkansas
2	2	Constitution.
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4	4	State of Arkansas 1
5	5	95th General Assembly 2
6	6	Regular Session, 2025 HJR 1005 3
7	7	4
8	8	By: Representative Long 5
9	9	6
10	10	7
11	11	HOUSE JOINT RESOLUTION 8
12	12	AN AMENDMENT TO THE ARKANSAS CONSTITUTION TO CREATE 9
13	13	THE "ARKANSAS TAXPAYER BILL OF RIGHTS"; AND TO AMEND 10
14	14	THE ARKANSAS CONSTITUTION CONCERNING THE COLLECTION 11
15	15	AND EXPENDITURE OF STATE REVENUE. 12
16	16	13
17	17	14
18	18	Subtitle 15
19	19	N AMENDMENT TO THE ARKANSAS CONSTITUTION 16
20	20	TO CREATE THE "ARKANSAS TAXPAYER BILL OF 17
21	21	RIGHTS". 18
22	22	19
23	23	BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE NINETY -FIFTH GENERAL 20
24	24	ASSEMBLY OF THE STATE OF ARKANSAS, AND BY THE SENATE, A MAJORITY OF ALL 21
25	25	MEMBERS ELECTED TO EACH HOUSE AGREEING THERETO: 22
26	26	23
27	27	THAT the following is proposed as an amendment to the Constitution of 24
28	28	the State of Arkansas, and upon being submitted to the electors of the state 25
29	29	for approval or rejection at the next general election for Representatives 26
30	30	and Senators, if a majority of the electors voting thereon at the election 27
31	31	adopt the amendment, the amendment shall become a part of the Constitution of 28
32	32	the State of Arkansas, to wit: 29
33	33	30
34	34	SECTION 1. The Arkansas Constitution is amended to add an additional 31
35	35	amendment to read as follows: 32
36	36	§ 1. Title. 33
37	37	This amendment shall be known and may be cited as the "Arkansas 34
38	38	Taxpayer Bill of Rights". 35
39	39	36 HJR1005
40	40
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42	42	§ 2. Budgeting. 1
43	43	(a) When enacting a budget for the state's fiscal year, the General 2
44	44	Assembly shall utilize a process that prohibits deficit spending of general 3
45	45	revenues by ensuring that the expenditure of general revenues in a fiscal 4
46	46	year does not exceed the amount of general revenues collected by the State of 5
47	47	Arkansas. 6
48	48	(b) Subsection (a) of this section does not prohibit the General 7
49	49	Assembly from budgeting for a fiscal year based on the state's expected 8
50	50	collection of general revenues and subsequently adjusting budgeting 9
51	51	priorities based upon actual collections of general revenue to ensure that 10
52	52	deficit spending does not occur. 11
53	53	12
54	54	§ 3. Increase of state taxes and fees. 13
55	55	(a) For any fiscal year that commences on or after July 1, 2027, a 14
56	56	three-fourths (3/4) vote of each house of the General Assembly shall be 15
57	57	required for legislation that is: 16
58	58	(1) Establishing a new tax or a new fee; 17
59	59	(2) Increasing the rate of a tax or fee; 18
60	60	(3) Extending an expiring tax or fee; or 19
61	61	(4) An amendment to the law directly causing a gain to the state 20
62	62	in net tax revenue or net fee revenue. 21
63	63	(b)(1) The General Assembly may submit a proposal under subdivisions 22
64	64	(a)(1)-(4) for the approval of qualified electors voting upon the matter at a 23
65	65	general election. 24
66	66	(2) A proposal submitted under subdivision (b)(1) of this 25
67	67	section shall become law if approved by three -fourths (3/4) of the qualified 26
68	68	electors voting upon the matter. 27
69	69	28
70	70	§ 4. Increase in general revenue expenditures. 29
71	71	(a) A budget prepared by the General Assembly for the state's fiscal 30
72	72	year shall provide that the increase in expenditures of net general revenue 31
73	73	available for distribution is no greater than two percent (2%) as compared to 32
74	74	the expenditures of net general revenue available for distribution in the 33
75	75	preceding fiscal year. 34
76	76	(b) The limitation under subsection (a) of this section does not apply 35
77	77	to one-time expenditures for the settlement of claims against the state or a 36 HJR1005
78	78
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80	80	state entity. 1
81	81	2
82	82	§ 5. Transfer to Catastrophic Reserve Fund. 3
83	83	(a) As used in this section, "emergency" means an extraordinary event 4
84	84	or occurrence that: 5
85	85	(1) Could not have been reasonably foreseen or prevented; and 6
86	86	(2) Requires immediate expenditure to preserve the health, 7
87	87	safety, and general welfare of the people of Arkansas. 8
88	88	(b)(1) For any state fiscal year that commences on or after July 1, 9
89	89	2027, before making any transfers to the Budget Stabilization Trust Fund or 10
90	90	any refunds as required by § 6 of this amendment, the Treasurer of State 11
91	91	shall transfer revenues in excess of the limitation on the increase in 12
92	92	expenditures of net general revenue available for distribution under § 4 of 13
93	93	this amendment to the Catastrophic Reserve Fund or its successor fund to the 14
94	94	extent necessary to ensure that the balance of the Catastrophic Reserve Fund 15
95	95	at the end of the fiscal year is an amount equal to twenty percent (20%) of 16
96	96	the previous fiscal year’s expenditures of net general revenue. 17
97	97	(2) The Treasurer of State shall not be required to transfer any 18
98	98	moneys to the Catastrophic Reserve Fund other than the moneys required under 19
99	99	subdivision (b)(1) of this section. 20
100	100	(3) The Catastrophic Reserve Fund shall be in addition to, and 21
101	101	shall not be used to meet, any other reserve requirement of this constitution 22
102	102	or Arkansas law. 23
103	103	(c)(1) Moneys in the Catastrophic Reserve Fund may be expended only 24
104	104	for an emergency. 25
105	105	(2)(A) An expenditure from the Catastrophic Reserve Fund may 26
106	106	occur upon a three-fourths (3/4) vote of a quorum present of each house of 27
107	107	the General Assembly in a regular, fiscal, or extraordinary session. 28
108	108	(B) Approval of an expenditure under subdivision (c)(2)(A) 29
109	109	of this section may include an appropriation for the expenditure of funds. 30
110	110	(3) Interest or other income earned on the Catastrophic Reserve 31
111	111	Fund shall accrue to the Catastrophic Reserve Fund. 32
112	112	33
113	113	§ 6. Transfer to Budget Stabilization Trust Fund. 34
114	114	(a) For any state fiscal year that commences on or after July 1, 2027, 35
115	115	if net general revenue of the state exceeds the limitation on the increase in 36 HJR1005
116	116
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118	118	expenditures of net general revenue available for distribution under § 4 of 1
119	119	this amendment, for that fiscal year the excess shall be utilized or refunded 2
120	120	as provided in this section. 3
121	121	(b) The Treasurer of State shall first transfer the excess to the 4
122	122	Catastrophic Reserve Fund as necessary under § 5 of this amendment. 5
123	123	(c)(1) The Treasurer of State shall transfer all additional excess 6
124	124	revenues to the Budget Stabilization Trust Fund or its successor fund to the 7
125	125	extent necessary to ensure that the balance of the Budget Stabilization Trust 8
126	126	Fund at the end of the fiscal year is an amount equal to twenty percent (20%) 9
127	127	of the previous fiscal year’s expenditures of net general revenue. 10
128	128	(2) The Budget Stabilization Trust Fund may exceed the balance 11
129	129	under subdivision (c)(1) of this section but shall not fall below that 12
130	130	balance. 13
131	131	(3) Interest or other income earned on the Budget Stabilization 14
132	132	Trust Fund shall accrue to the Budget Stabilization Trust Fund. 15
133	133	(d) For any state fiscal year that commences on or after July 1, 2027, 16
134	134	if the amount of net general revenue is less than the amount of net general 17
135	135	revenue for the prior fiscal year, the Treasurer of State shall transfer 18
136	136	money from the Budget Stabilization Trust Fund to the General Revenue Fund 19
137	137	Account of the State Apportionment Fund in an amount equal to the difference 20
138	138	between the amount of net general revenues for the prior fiscal year and the 21
139	139	amount of net general revenues for the fiscal year. 22
140	140	(e)(1) The Budget Stabilization Trust Fund may consist of other funds 23
141	141	as provided by law. 24
142	142	(2) The General Assembly may provide by law for additional uses 25
143	143	of the Budget Stabilization Trust Fund. 26
144	144	(f) Any moneys that remain after the Treasurer of State has made the 27
145	145	transfers required by this section or by law shall be reserved in the current 28
146	146	fiscal year and refunded during the next fiscal year through temporary 29
147	147	reductions of income tax rates and sales and use tax rates. 30
148	148	31
149	149	§ 7. Laws necessary to implement amendment. 32
150	150	The General Assembly may enact laws necessary to implement this 33
151	151	amendment, including without limitation laws concerning temporary reductions 34
152	152	of income tax rates and sales and use tax rates authorized under § 6 of this 35
153	153	amendment. 36 HJR1005
154	154
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156	156	1
157	157	SECTION 2. Arkansas Constitution, Article 5, § 38, is repealed. 2
158	158	§ 38. Taxes — Increase — Approval by electors. 3
159	159	§ 2. None of the rates for property, excise, privilege or personal 4
160	160	taxes, now levied shall be increased by the General Assembly except after the 5
161	161	approval of the qualified electors voting thereon at an election, or in case 6
162	162	of emergency, by the votes of three -fourths of the members elected to each 7
163	163	House of the General Assembly. 8
164	164	9
165	165	SECTION 3. The subsection of Arkansas Constitution, Article 5, § 1, 10
166	166	titled "Majority", is amended to read as follows: 11
167	167	Majority. Any measure submitted to the people as herein provided shall 12
168	168	take effect and become a law when approved by a majority of the votes cast 13
169	169	upon such measure, and not otherwise, and shall not be required to receive a 14
170	170	majority of the electors voting at such election. Such measures shall be 15
171	171	operative on and after the thirtieth day after the election at which it is 16
172	172	approved, unless otherwise specified in the Act. 17
173	173	This section shall not be construed to deprive any member of the 18
174	174	General Assembly of the right to introduce any measure ,. but Except as 19
175	175	otherwise provided in this constitution, no measure shall be submitted to the 20
176	176	people by the General Assembly , except a proposed constitutional amendment or 21
177	177	amendments as provided for in this Constitution . 22
178	178	23
179	179	SECTION 4. EFFECTIVE DATE. This amendment is effective on and after 24
180	180	January 1, 2027. 25
181	181	26
182	182	SECTION 5. BALLOT TITLE AND POPULAR NAME. When this proposed 27
183	183	amendment is submitted to the electors of this state on the general election 28
184	184	ballot: 29
185	185	(1) The title of this Joint Resolution shall be the ballot 30
186	186	title; and 31
187	187	(2) The popular name shall be "A Constitutional Amendment to 32
188	188	Create the "Arkansas Taxpayer Bill of Rights"; and to Amend the Arkansas 33
189	189	Constitution Concerning the Collection and Expenditure of State Revenue. " 34
190	190	35
191	191	36