Bill > HJR1005

This joint resolution proposes a constitutional amendment known as the Arkansas Taxpayer Bill of Rights, which establishes several key fiscal constraints on state government. The amendment would require the General Assembly to prohibit deficit spending, ensuring that annual expenditures do not exceed general revenue collections, and would mandate a three-fourths legislative vote for any new taxes, fee increases, or tax rate extensions starting July 1, 2027. It limits annual increases in general revenue expenditures to 2% compared to the previous fiscal year and creates two new fiscal mechanisms: a Catastrophic Reserve Fund (to be maintained at 20% of previous year's expenditures) and a Budget Stabilization Trust Fund, also set at 20% of previous year's expenditures. The amendment provides specific rules for transferring excess revenues between these funds and requires that any remaining funds be refunded to taxpayers through temporary reductions in income and sales tax rates. Additionally, the resolution repeals an existing constitutional provision about tax increases and modifies rules about ballot measures. If approved by voters, the amendment would become effective January 1, 2027, with the goal of providing more fiscal discipline and taxpayer protections in Arkansas's state budgeting process.

Government Affairs

https://arkleg.state.ar.us/Bills/Detail?id=hjr1005&ddBienniumSession=2025%2F2025R