SJR 42 - This constitutional amendment, if approved by the voters, prohibits total state general revenue appropriations for any fiscal year, as defined in the amendment, from exceeding the level from the previous fiscal year, allowing for growth in an amount equal to the annual rate of inflation plus the annual percentage change in state population. Total state general revenue appropriations may exceed the previous fiscal year’s amount only under certain conditions, as described in the amendment.
For any fiscal year in which net general revenue collections exceed total state general revenue appropriations by more than one percent of allowable total state general revenue appropriations, the lowest state income tax rate in effect shall be permanently eliminated. Such elimination shall not occur if there is a single income tax rate in effect.
For each fiscal year after the fiscal year in which the final rate elimination has occurred, the Commissioner of Administration shall record the amount by which net general revenue collections exceed total state general revenue appropriations. When the amount recorded exceeds total state general revenue appropriations by two and one-half percent, the top state income tax rate shall be reduced by one-quarter of one percent. The Commissioner of Administration shall perform this calculation and rate reduction beginning in each fiscal year following a fiscal year in which a rate reduction occurs until the top state income tax rate is eliminated.
This amendment is identical to SJR 4 (2019), SJR 31 (2018), and SJR 12 (2017), and is similar to a provision contained in HCS/HJR 56 (2016).