Florida Senate - 2010                                   SJR 2420
       
       
       
       By Senator Haridopolos
       
       
       
       
       26-01510-10                                           20102420__
    1                       Senate Joint Resolution                     
    2         A joint resolution proposing an amendment to Section 1
    3         and the creation of a new section in Article VII of
    4         the State Constitution to limit state and local
    5         government revenues and require voter approval of new
    6         taxes and fees.
    7  
    8  Be It Resolved by the Legislature of the State of Florida:
    9  
   10         That the following amendment to Section 1 and the creation
   11  of a new section in Article VII of the State Constitution are
   12  agreed to and shall be submitted to the electors of this state
   13  for approval or rejection at the next general election or at an
   14  earlier special election specifically authorized by law for that
   15  purpose:
   16                             ARTICLE VII                           
   17                        FINANCE AND TAXATION                       
   18         SECTION 1. Taxation; appropriations; state expenses; state
   19  revenue limitation.—
   20         (a) No tax shall be levied except in pursuance of law. No
   21  state ad valorem taxes shall be levied upon real estate or
   22  tangible personal property. All other forms of taxation shall be
   23  preempted to the state except as provided by general law.
   24         (b) Motor vehicles, boats, airplanes, trailers, trailer
   25  coaches and mobile homes, as defined by law, shall be subject to
   26  a license tax for their operation in the amounts and for the
   27  purposes prescribed by law, but shall not be subject to ad
   28  valorem taxes.
   29         (c) No money shall be drawn from the treasury except in
   30  pursuance of appropriation made by law.
   31         (d) Provision shall be made by law for raising sufficient
   32  revenue to defray the expenses of the state for each fiscal
   33  period.
   34         (e)Except as provided herein, state revenues collected for
   35  any fiscal year shall be limited to state revenues allowed under
   36  this subsection for the prior fiscal year plus an adjustment for
   37  growth. As used in this subsection, “growth” means an amount
   38  equal to the average annual rate of growth in Florida personal
   39  income over the most recent twenty quarters times the state
   40  revenues allowed under this subsection for the prior fiscal
   41  year. For the 1995-1996 fiscal year, the state revenues allowed
   42  under this subsection for the prior fiscal year shall equal the
   43  state revenues collected for the 1994-1995 fiscal year. Florida
   44  personal income shall be determined by the legislature, from
   45  information available from the United States Department of
   46  Commerce or its successor on the first day of February prior to
   47  the beginning of the fiscal year. State revenues collected for
   48  any fiscal year in excess of this limitation shall be
   49  transferred to the budget stabilization fund until the fund
   50  reaches the maximum balance specified in Section 19(g) of
   51  Article III, and thereafter shall be refunded to taxpayers as
   52  provided by general law. State revenues allowed under this
   53  subsection for any fiscal year may be increased by a two-thirds
   54  vote of the membership of each house of the legislature in a
   55  separate bill that contains no other subject and that sets forth
   56  the dollar amount by which the state revenues allowed will be
   57  increased. The vote may not be taken less than seventy-two hours
   58  after the third reading of the bill. For purposes of this
   59  subsection, “state revenues” means taxes, fees, licenses, and
   60  charges for services imposed by the legislature on individuals,
   61  businesses, or agencies outside state government. However,
   62  “state revenues” does not include: revenues that are necessary
   63  to meet the requirements set forth in documents authorizing the
   64  issuance of bonds by the state; revenues that are used to
   65  provide matching funds for the federal Medicaid program with the
   66  exception of the revenues used to support the Public Medical
   67  Assistance Trust Fund or its successor program and with the
   68  exception of state matching funds used to fund elective
   69  expansions made after July 1, 1994; proceeds from the state
   70  lottery returned as prizes; receipts of the Florida Hurricane
   71  Catastrophe Fund; balances carried forward from prior fiscal
   72  years; taxes, licenses, fees, and charges for services imposed
   73  by local, regional, or school district governing bodies; or
   74  revenue from taxes, licenses, fees, and charges for services
   75  required to be imposed by any amendment or revision to this
   76  constitution after July 1, 1994. An adjustment to the revenue
   77  limitation shall be made by general law to reflect the fiscal
   78  impact of transfers of responsibility for the funding of
   79  governmental functions between the state and other levels of
   80  government. The legislature shall, by general law, prescribe
   81  procedures necessary to administer this subsection.
   82         State and local revenue limits.—
   83         (a)DEFINITIONS.As used in this section, the term:
   84         (1)“Fiscal year” means the applicable fiscal year for the
   85  state or a local government.
   86         (2)“Growth” means an amount equal to a government’s
   87  revenues collected in the 2010-2011 fiscal year multiplied for
   88  each subsequent fiscal year by the combined rate of inflation
   89  and rate of population change. For school districts, enrollment
   90  changes shall be used in lieu of population changes.
   91         (3)“Local government” means a county, municipality, school
   92  district, or special district that has the authority to impose
   93  ad valorem taxes. Any municipal service taxing or benefit unit
   94  of a county and any special district dependent to a county shall
   95  be included in that county government. Any municipal service
   96  taxing or benefit unit of a municipality and any special
   97  district dependent to a municipality shall be included in that
   98  municipality. The term does not include any special district
   99  established at the request of or with the consent of all
  100  landowners in the district for the purpose of providing
  101  infrastructure or services to land located within the district.
  102         (4)“Local government revenues” means taxes, fees,
  103  assessments, licenses, fines, and charges for services imposed
  104  by a local government on individuals, businesses, or another
  105  local government. However, the term does not include: proceeds
  106  from the issuance of bonds, gifts, federal funds, collections
  107  for another government, pension contributions by employees and
  108  pension fund earnings, emergency reserve transfers, damage
  109  awards, and property sales.
  110         (5)“Rate of enrollment change” means the percentage change
  111  in each school district’s student enrollment as reported by each
  112  school district. The stated percentages shall be established
  113  annually in the manner prescribed by general law, and shall be
  114  based on a comparison of the average of the school district’s
  115  enrollment for the two most recent calendar years.
  116         (6)“Rate of inflation” means the percentage change in the
  117  Consumer Price Index for all urban wage earners and clerical
  118  workers for the south region, or a successor index, for the
  119  preceding calendar year as calculated by the United States
  120  Department of Labor, Bureau of Labor Statistics. The stated
  121  percentages shall be established annually in the manner
  122  prescribed by general law, and shall be based on a comparison of
  123  the average of the Consumer Price Index during the most recent
  124  two consecutive calendar years.
  125         (7)“Rate of population change” means the percentage change
  126  in population within the boundaries of the state or a local
  127  government as estimated by the United States Census Bureau. The
  128  stated percentages shall be established annually in the manner
  129  prescribed by general law, and shall be based on a comparison of
  130  the average of the Census Bureau estimates for the most recent
  131  two consecutive calendar years.
  132         (8)“State revenues” means taxes, fees, assessments,
  133  licenses, fines, and charges for services imposed by the
  134  legislature or executive branch agencies on individuals,
  135  businesses, or agencies outside state government. However, the
  136  term does not include: proceeds from the issuance of bonds,
  137  proceeds from the state lottery returned as prizes, receipts of
  138  the Florida Hurricane Catastrophe Fund and Citizens Property
  139  Insurance Corporation or their successor entities, tuition and
  140  fees charged to students by public universities and community
  141  colleges, gifts, federal funds, collections for another
  142  government, pension contributions by employees and pension fund
  143  earnings, budget stabilization fund transfers, damage awards,
  144  and property sales.
  145         (b)STATE AND LOCAL REVENUE LIMIT.Except as provided in
  146  this section, state revenues collected by the state and local
  147  government and revenues collected by each local government for
  148  any fiscal year shall be limited to revenues collected in the
  149  2010-2011 fiscal year plus an annual adjustment for growth.
  150         (c)PROPERTY TAX REVENUE LIMIT.The annual percentage
  151  change in each local government’s property tax revenue may not
  152  exceed property tax revenue in the prior calendar year plus
  153  annual local growth, adjusted for property tax revenue changes
  154  approved by vote of the electors of the respective local
  155  governments.
  156         (d)REVENUE RELATING TO BONDS.Fiscal year revenue of the
  157  state or a local government does not include the proceeds from
  158  the issuance of bonds. However, the debt service on bonds shall
  159  decrease the revenue limit by the amount of the annual debt
  160  service.
  161         (e)VOTER APPROVAL TO EXCEED REVENUE LIMITS.State and
  162  local governments may not impose taxes, fees, licenses, fines,
  163  or charges for services expected to exceed the revenue limit, as
  164  projected by the state and local governments at the adoption of
  165  their respective budgets for the fiscal year. Revenue collected
  166  in excess of the revenue limit may not be spent without approval
  167  of the majority of electors residing within the boundaries of
  168  the applicable government.
  169         (1)State revenue collected in any fiscal year in excess of
  170  the revenue limit shall be transferred to the budget
  171  stabilization fund specified in Section 19(g) of Article III
  172  until the fund reaches the maximum amount specified in that
  173  section. Additional excess revenue shall be held in a separate
  174  cash reserve, with such excess revenue and any investment income
  175  thereon treated as revenue in the first or second fiscal year
  176  after the collection of those revenues, as prescribed by general
  177  law.
  178         (2)Revenue collected by a local government in excess of
  179  the revenue limit in any fiscal year shall be transferred to a
  180  budget stabilization fund, if such fund has been created by the
  181  applicable local government, until the fund reaches a maximum of
  182  3 percent of the last completed fiscal year’s revenue
  183  collection. Additional excess revenue, or revenue collected in
  184  excess of the revenue limit by a local government that does not
  185  create a budget stabilization fund, shall be held in a separate
  186  cash reserve, with such excess revenue and any investment income
  187  thereon treated as revenue in the first or second fiscal year
  188  after the collection of those excess revenues, as prescribed by
  189  general law.
  190         (3)The legislature shall provide criteria for withdrawing
  191  funds from budget stabilization funds created by local
  192  governments only for the purpose of covering revenue shortfalls
  193  of the general revenue fund or for providing funding in an
  194  emergency in which substantial harm occurs to the population or
  195  to property within the boundaries of a local government, as
  196  prescribed by general law. Expenditure of budget stabilization
  197  funds for emergency purposes shall require a declaration of a
  198  state of emergency by the Governor and a two-thirds majority
  199  vote of the members of the legislature or governing body of a
  200  local government by a recorded roll call vote. Funds may not be
  201  withdrawn for any purpose other than those specified in this
  202  subsection.
  203         (f)EMERGENCY TAXES.
  204         (1)Emergency taxes may be assessed under conditions set
  205  forth in this subsection. Emergency tax revenue shall be spent
  206  only after emergency reserves are depleted. Revenues from
  207  emergency taxes shall be refunded within 180 days after the
  208  emergency terminates if the revenues were not spent on the
  209  emergency. This subsection does not grant any new taxing powers
  210  and prohibits emergency property taxes.
  211         (2)Emergency taxes may not be levied unless the Governor
  212  declares a state of emergency and the taxes are approved by a
  213  two-thirds vote of the membership of each house of the
  214  legislature or governing body of a local government. The vote of
  215  each member of the legislature or governing body of the local
  216  government must be recorded.
  217         (3)An emergency tax that is not approved by a vote of the
  218  electors of a local government on the next election date
  219  occurring 60 days or more after the declaration shall terminate
  220  on or before the last day of the month in which the election is
  221  held.
  222         (4)As used in this subsection, the term “emergency” does
  223  not include economic conditions, revenue shortfalls, or salary
  224  and fringe benefit increases.
  225         (g)REVENUE LIMITS FOR NEW LOCAL GOVERNMENT.Local
  226  governments created after November 2, 2010, shall be subject to
  227  this section, as prescribed by general law.
  228         (h)BALLOT ISSUE TO EXCEED A REVENUE LIMIT.A ballot issue
  229  for authorization to exceed a revenue limit must state the
  230  amount by which the state or local government proposes to exceed
  231  the limit in each fiscal year. The ballot issue must also state
  232  the date on which the authority to exceed a revenue limit
  233  expires. Such date must be the last day of the fiscal year.
  234         (i)REVENUE LIMIT ADJUSTMENT.The legislature may provide
  235  by general law for adjustments to revenue limits to reflect the
  236  fiscal impact of the following events occurring after January 4,
  237  2011:
  238         (1)A change in federal or state law which increases or
  239  decreases state or local government responsibility for the
  240  funding of governmental functions; or
  241         (2)A transfer of the responsibility to fund a government
  242  function to the state or a local government.
  243         (j)VOTER APPROVAL OF NEW REVENUE SOURCES.The state and
  244  local governments must receive advance approval by a two-thirds
  245  vote of the electors voting on a measure in the state or local
  246  government to:
  247         (1)Impose a new tax, fee, assessment, or charge for
  248  services; or
  249         (2)Incur multiple-year direct or indirect debt or other
  250  financial obligations without having adequate present cash
  251  reserves pledged irrevocably and held for payments in all future
  252  fiscal years, except to refinance bonded debt at a lower
  253  interest rate or to add new employees to a pension plan.
  254         (k)CONSTRUCTION.This section shall be interpreted in a
  255  manner that reasonably restrains most of the growth of state and
  256  local governments. This section supersedes any conflicting
  257  provisions of the State Constitution in effect prior to the
  258  effective date of this section.
  259         (l)EFFECTIVE DATE.This section shall take effect upon
  260  approval by the electors. During the 2011 regular session of the
  261  legislature, the legislature shall adopt implementing
  262  legislation having an effective date of July 1, 2011.
  263         BE IT FURTHER RESOLVED that the following statement be
  264  placed on the ballot:
  265                      CONSTITUTIONAL AMENDMENT                     
  266                       ARTICLE VII, SECTION 1                      
  267                             ARTICLE VII                           
  268         LIMITING STATE AND LOCAL GOVERNMENT REVENUES, VOTER
  269  APPROVAL OF NEW TAXES AND FEES.—This proposed amendment to the
  270  State Constitution replaces the existing state revenue limit
  271  based on Florida personal income growth with new state and local
  272  government revenue limits based on inflation and population
  273  changes. Property tax revenues are limited based on changes in
  274  local growth and enrollment changes in school districts.
  275  Revenues collected in excess of revenue limits must be deposited
  276  in budget stabilization funds, used to reduce future taxes, or
  277  refunded to taxpayers.
  278         However, the amendment permits voters to authorize the
  279  collection of revenues in excess of a revenue limit. The
  280  amendment also permits the Legislature and the governing body of
  281  a local government to approve taxes by a supermajority vote for
  282  certain emergencies.
  283         Lastly, this amendment prohibits the state or a local
  284  government from the following without first obtaining approval
  285  by a supermajority vote of the electors:
  286         (1) Imposing new taxes, fees, assessments, or charges for
  287  services; or
  288         (2) Incurring multi-year debts or financial obligations
  289  without adequate cash reserves.