OFFICIAL TITLE

An Initiative Measure

Taxpayer Protection Act of 2000

PROPOSING AN AMENDMENT TO THE CONSTITUTION OF ARIZONA: AMENDING ARTICLE IX, SECTIONS 12 AND 22 RELATING TO STATE TAXATION; AMENDING ARTICLE VII BY ADDING SECTION 19 RELATING TO A VOLUNTARY FEDERAL INCOME TAX ELIMINATION PLEDGE.

 

TEXT OF THE PROPOSED AMENDMENT

Be it enacted by the people of the State of Arizona:

The following amendments are proposed to become valid when approved by a majority of the qualified electors voting thereon and upon proclamation of the Governor.

 

Section 1. Title.

This initiative shall be known and may be cited as the "Taxpayer Protection Act of 2000."

 

Section 2. Findings and Declaration of Purpose.

  1. The state of Arizona's income tax on individuals and corporations doesn't work. It is a tool of special interest groups. It is complicated, confusing and stifles economic growth. The state income tax will be eliminated over the next four years.
  2. Any future tax increases of any kind will be submitted to Arizona taxpayers for their approval. No increase can take effect without a majority of their vote.
  3. The people of Arizona have a substantial interest in ensuring its citizens are informed prior to the date of each primary and general election about the position held by candidates for elected public office, both state and federal, on issues of significance to Arizona voters. Among the issues of significance to the people of Arizona is the position of the candidates for elected federal office on a legislative proposal to replace the federal income tax with a national consumption tax, defined generally as a tax imposed on the gross receipts from the retail sales of any taxable property or service sold in the United States, but not including a tax calculated at a flat or fixed rate on personal or corporate income, and thereby to abolish the Internal Revenue Service.
  4. Arizona's candidates for federal office will be required to state their position on eliminating the federal income tax and replacing it with a national consumption tax, and thus abolishing the Internal Revenue Service. Their pledge shall be stated on the ballot for the Arizona general election until such a consumption tax measure becomes the law of the United States of America.

 

Section 3.

Article IX, section 12, Constitution of Arizona, is amended as follows:

Section 12. Authority to levy and collect taxes; exemption of income from taxation

Section 12. The law-making power shall have authority to provide for the levy and collection of license, franchise, gross revenue, excise, income, collateral and direct inheritance, legacy, and succession taxes, also graduated income taxes, graduated collateral and direct inheritance taxes, graduated legacy and succession taxes, stamp, registration, production, or other specific taxes.

THE LEGISLATURE MAY PROVIDE FOR INCOME TAXES THROUGH DECEMBER 31, 2004. BEGINNING JANUARY 1, 2005, THE INCOME OF INDIVIDUALS, CORPORATIONS, PARTNERSHIPS AND OTHER LEGAL ENTITIES SHALL NOT BE SUBJECT TO TAXATION BY THIS STATE OR BY A COUNTY, CITY, TOWN OR ANY OTHER POLITICAL SUBDIVISION OF THIS STATE.

 

Section 4.

Article IX, Section 22, Constitution of Arizona, is amended as follows:

Section 22. Vote required to increase state revenues; applications; exceptions

Section 22. (A) An act that provides for a net increase in state revenues, as described in Subsection B is MAY BECOME PRELIMINARILY effective on AFTER the affirmative vote of two-thirds of the members of each house of the legislature. If the act receives such an affirmative vote, it becomes effectively immediately IS PRELIMINARILY EFFECTIVE on the signature of the governor as provided by Article IV, Part I, I, OR If IF the governor vetoes the measure, it shall not MAY become PRELIMINARILY effective unless AFTER it is approved by an affirmative vote of three-fourths of the members of each house of the legislature. AFTER PRELIMINARY APPROVAL AS PRESCRIBED BY THIS SUBSECTION, THE SECRETARY OF STATE SHALL PUBLISH, PRINT AND SUBMIT THE ACT TO THE QUALIFIED ELECTORS AT THE NEXT REGULAR GENERAL ELECTION AS A REFERENDUM AS PROVIDED BY ARTICLE IV, PART I, I. THE ACT SHALL NOT BECOME EFFECTIVE UNLESS IT IS APPROVED BY A MAJORITY OF THE QUALIFIED ELECTORS VOTING ON THE MEASURE.

(B) The requirements of this section apply to any act that provides for a net increase in state revenues in the form of:

  1. The imposition of any new tax.
  2. An increase in a tax rate or rates.
  3. A reduction or elimination of a tax deduction, exemption, exclusion, credit or other tax exemption feature in computing tax liability.
  4. An increase in a statutorily prescribed state fee or assessment or an increase in a statutorily prescribed maximum limit for an administratively set fee.
  5. The imposition of any new state fee or assessment or the authorization of any new administratively set fee.
  6. The elimination of an exemption from a statutorily prescribed state fee or assessment.
  7. A change in the allocation among the state, counties or cities in Arizona transaction privilege, severance, jet fuel and use, rental occupancy, or other taxes.
  8. Any combination of the elements described in paragraphs 1 through 7.

(C) This section does not apply to:

  1. The effects of inflation, increasing assessed valuation or any other similar effect that increases state revenue but is not caused by an affirmative act of the legislature.
  2. Fees and assessments that are authorized by statute, but are not prescribed by formula, amount or limit, and are set by a state officer or agency.
  3. Taxes, fees or assessments that are imposed by counties, cities, towns ad other political subdivisions of this state.

(D) Each act to which this section applies shall include a separate provision describing the requirements for enactment prescribed by this section.

Section 5.

Article VII, Constitution of Arizona, is amended as follows, by adding section 19:

19. Voluntary Federal Income Tax Elimination Pledge

Section 19. A. A CANDIDATE FOR THE OFFICE OF PRESIDENT OF THE UNITED STATES OR THE OFFICE OF UNITED STATES SENATE OR UNITED STATES REPRESENTATIVE FROM THIS STATE MAY, BUT IS NOT REQUIRED TO, EXECUTE AND FILE WITH THE SECRETARY OF STATE THE FEDERAL INCOME TAX ELIMINATION PLEDGE DESCRIBED IN SUBSECTION B. THE PLEDGE MUST BE FILED AT LEAST SIXTY DAYS BEFORE A PRIMARY ELECTION AND AT LEAST TWENTY DAYS BEFORE A GENERAL ELECTION. A CANDIDATE SHALL NOT BE DENIED PLACEMENT ON AN ELECTION BALLOT FOR FAILURE OR REFUSAL TO SUBMIT A PLEDGE PURSUANT TO THIS SECTION.

  1. THE TEXT OF THE PLEDGE SHALL BE AS FOLLOWS
  2. "PART A: I, ____________________, VOLUNTARILY PLEDGE TO ADVOCATE AND VOTE FOR THE ELIMINATION OF THE FEDERAL INCOME TAX, THE ELIMINATION OF THE UNITED STATES INTERNAL REVENUE SERVICE AND THE ENACTMENT OF A FEDERAL TAX ON ECONOMIC CONSUMPTION.

    PART B: I AUTHORIZE THAT THE NOTICE "SIGNED THE FEDERAL INCOME TAX ELIMINATION PLEDGE" BE PLACED NEXT TO MY NAME ON THE ELECTION BALLOT AND IN ALL OFFICIAL VOTER EDUCATION PAMPHLETS IN WHICH MY NAME APPEARS AS A CANDIDATE.

    _________________________ ___________

    SIGNATURE OF CANDIDATE DATE"

  3. THE AUTHORIZED ELECTION OFFICIALS SHALL PLACE THE NOTICE PRESCRIBED IN PART B OF THE PLEDGE NEXT TO THE CANDIDATE'S NAME ON THE PRIMARY OR GENERAL ELECTION BALLOT AND IN ALL OFFICIAL VOTER EDUCATION PAMPHLETS IN WHICH THE CANDIDATE'S NAME APPEARS.
  4. IF A CANDIDATE WHO EXECUTED THE PLEDGE IS NOT ELECTED, THE PLEDGE LAPSES AND IS OF NO FURTHER EFFECT. THE CANDIDATE MAY EXECUTE AND FILE ANOTHER PLEDGE FOR ANY SUBSEQUENT ELECTION.
  5. ANY RESIDENT OF THIS STATE HAS STANDING TO ENFORCE THE PROVISIONS OF THIS SECTION IN A COURT OF COMPETENT JURISDICTION.

 

Section 6. Severability

If any provision of this initiative or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the initiative that can be given effect without the invalid provision or application, and to this end the provisions of this initiative are severable.