Article VII — Taxation and Finance
Taxing Power Inalienable
The power of taxation shall never be surrendered, suspended or contracted away.
[Ren Const Con 1978 and election Nov 7, 1978]
Income Taxation
In enacting any law imposing a tax on or measured by income, the legislature may define income by reference to provisions of the laws of the United States as they may be or become effective at any time or from time to time.
[Add Const Con 1978 and election Nov 7, 1978]
Tax Review Commission
There shall be a tax review commission, which shall be appointed as provided by law on or before July 1, 1980, and every five years thereafter. The commission shall submit to the legislature an evaluation of the State's tax structure.
[Add Const Con 1978 and election Nov 7, 1978]
Appropriations for Private Purposes Prohibited
No tax shall be levied or appropriation of public money or property made, nor shall the public credit be used, directly or indirectly, except for a public purpose.
[Ren Const Con 1968 and election Nov 5, 1968; ren and am Const Con 1978 and election Nov 7, 1978]
Expenditure Controls
No public money shall be expended except pursuant to appropriations made by law. General fund expenditures for any fiscal year shall not exceed the State's current general fund revenues and unencumbered cash balances, except when the governor publicly declares the public health, safety or welfare is threatened.
[Ren Const Con 1968 and election Nov 5, 1968; ren and am Const Con 1978 and election Nov 7, 1978]
Disposition of Excess Revenues
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, make a deposit into reserve funds, or appropriate funds for pre-payment of debt service or pension liabilities.
[Add Const Con 1978 and election Nov 7, 1978; am SB 2807 (2010) and election Nov 2, 2010; am SB 2554 (2016) and election Nov 8, 2016]
Council on Revenues
There shall be established by law a council on revenues which shall prepare revenue estimates of the state government and shall report the estimates to the governor and the legislature. All revenue estimates submitted by the council to the governor and the legislature shall be made public.
[Add Const Con 1978 and election Nov 7, 1978]
The Budget
Within such time prior to the opening of each regular session in an odd-numbered year as may be provided by law, the governor shall submit to the legislature a budget setting forth a complete plan of proposed expenditures of the executive branch and anticipated receipts of the State for the ensuing fiscal biennium.
[Am Const Con 1968 and election Nov 5, 1968; ren and am Const Con 1978 and election Nov 7, 1978]
Legislative Appropriations; Procedures; Expenditure Ceiling
The legislature shall establish a general fund expenditure ceiling which shall limit the rate of growth of general fund appropriations to the estimated rate of growth of the State's economy. No appropriations in excess of such ceiling shall be authorized during any legislative session unless the legislature shall, by a two-thirds vote, set forth the dollar amount and the rate by which the ceiling will be exceeded and the reasons therefor.
[Am Const Con 1968 and election Nov 5, 1968; ren and am Const Con 1978 and election Nov 7, 1978]
Auditor
The legislature, by a majority vote of each house in joint session, shall appoint an auditor who shall serve for a period of eight years. The auditor shall conduct post-audits of the transactions, accounts, programs and performance of all departments, offices and agencies of the State and its political subdivisions.
[Ren Const Con 1968 and election Nov 5, 1968; ren and am Const Con 1978 and election Nov 7, 1978]
Lapsing of Appropriations
All appropriations for which the source is general obligation bond funds or general funds shall be for specified periods. No such appropriation shall be made for a period exceeding three years.
[Add Const Con 1978 and election Nov 7, 1978; am SB 2211 (1996) and election Nov 5, 1996]
Definitions; Issuance of Indebtedness
The legislature, by a majority vote of the members to which each house is entitled, shall authorize the issuance of all general obligation bonds, bonds issued under special improvement statutes and revenue bonds issued by or on behalf of the State.
[Am Const Con 1968 and election Nov 5, 1968; ren and am Const Con 1978 and election Nov 7, 1978]
Debt Limit; Exclusions
General obligation bonds may be issued by the State; provided that such bonds at the time of issuance would not cause the total amount of principal and interest payable in the current or any future fiscal year to exceed eighteen and one-half percent of the average of the general fund revenues of the State in the three fiscal years immediately preceding such issuance.
[Am Const Con 1968 and election Nov 5, 1968; ren and am Const Con 1978 and election Nov 7, 1978]