-Report Title:
Taxation
Description:
Proposes a constitutional amendment to mandate the refund or credit of tax revenues collected in excess of the inflation rate and the percentage growth in state population for the previous year.
HOUSE OF REPRESENTATIVES |
H.B. NO. |
1969 |
TWENTY-SECOND LEGISLATURE, 2004 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
proposing an amendment to article VII, section 6, of the hawaii constitution, to mandate the refunding of all excess tax revenues above a percentage exceeding the inflation rate and the percentage growth in population over the preceding year.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The purpose of this Act is to propose an amendment to Article VII, section 6, of the Constitution of the State of Hawaii to set forth guidelines for the disposition of excess revenues.
SECTION 2. Article VII, section 6, of the Constitution of the State of Hawaii is amended to read as follows:
"DISPOSITION OF EXCESS REVENUES
Section 6. Whenever the state general fund balance at the close of each of two successive fiscal years exceeds five percent of general fund revenues for each of the two fiscal years, the legislature in the next regular session shall provide for a tax refund or tax credit to the taxpayers of the State, as provided by law. If tax increases or fee increases result in an increase in the amount of revenue the state collected in the immediately preceding fiscal year which, when expressed as a percentage, is greater than the inflation rate plus the percentage change in state population in the prior calendar year, the tax increase is thereafter reduced up to one hundred per cent in proportion to the dollar excess, and the excess revenue shall be refunded or returned as a tax credit in the next fiscal year. Population shall be determined by annual federal census estimates and such number shall be adjusted every decade to match the federal census.
SECTION 3. The question to be printed on the ballot shall be as follows:
"Shall the Legislature be mandated to refund in full tax revenues in excess of the rate of inflation plus the percentage change in state population in the preceding calendar year?"
SECTION 4. New constitutional material is underscored.
SECTION 5. This amendment shall take effect upon compliance with article XVII, section 3, of the Constitution of the State of Hawaii.
INTRODUCED BY: |
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