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Bill Summary · SJR 17

Summary of SJR 17: Arkansas Taxpayer Bill of Rights

Bill Number: SJR 17
Title: An Amendment to the Arkansas Constitution to Create the Arkansas Taxpayer Bill of Rights
Status: Died in Senate Committee at Sine Die adjournment
Introduced: February 12, 2025
Classification: Joint Resolution

Purpose and Intent

SJR 17 aimed to amend the Arkansas Constitution by establishing the "Arkansas Taxpayer Bill of Rights" (ATBR). The primary intent of this amendment was to enhance fiscal responsibility within the state government by prohibiting deficit spending and imposing stricter requirements on tax and fee legislation.

Key Provisions

The proposed amendment included several significant provisions:

  1. Deficit Spending Prohibition:

    • Starting January 1, 2027, the General Assembly would be prohibited from enacting a budget that exceeds the actual general revenues collected in a fiscal year.

  2. Legislative Approval Requirements:

    • A three-fourths (3/4) majority vote in both houses of the General Assembly would be required to:
      • Establish new taxes or fees.
      • Increase existing tax or fee rates.
      • Extend expiring taxes or fees.
      • Enact legislation that would result in a net gain in tax or fee revenue.

  3. Expenditure Limitations:

    • The amendment would limit the increase in net general revenue expenditures to either:
      • 3% compared to the previous fiscal year's expenditures, or
      • The percentage increase in the Consumer Price Index for All Urban Consumers, whichever is lower.
    • This limitation would not apply to one-time expenditures related to claims against the state.

  4. Handling Excess Revenues:

    • Any excess revenues collected beyond the allowed expenditures would be allocated as follows:
      • First, to the Catastrophic Reserve Fund (CRF) to maintain a balance of at least 20% of the previous fiscal year's expenditures.
      • Second, to the Budget Stabilization Trust Fund (BSTF) to ensure a similar balance.
      • Remaining excess amounts would be refunded to taxpayers through temporary reductions in income and sales taxes.

  5. Repeal and Replacement:

    • The amendment proposed the repeal of existing provisions in the Arkansas Constitution regarding tax increases and replaced certain language to clarify the submission of measures to voters.

Impact

  • Taxpayers: The ATBR aimed to provide taxpayers with more control over tax increases and ensure that state budgets are balanced, potentially leading to temporary tax reductions in years of surplus revenue.
  • State Government: The amendment would impose stricter fiscal discipline on the General Assembly, requiring careful budgeting and planning to avoid deficits.

Procedural Aspects

  • The bill was introduced on February 12, 2025, and underwent several legislative actions, including amendments and re-referrals to committees.
  • Ultimately, SJR 17 died in the Senate Committee on May 5, 2025, at the Sine Die adjournment, meaning it did not progress to a vote by the full legislature or the electorate.

This summary provides an overview of SJR 17's objectives, key provisions, and potential implications for Arkansas taxpayers and state governance.

Compiled from official sources — confirm details with the bill’s official record.

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