02/27/2018 01:30 PM Senate LABOR & COMMERCE

         SJR  7-CONST. AM: VOTER APPROVAL FOR NEW TAXES                                                                     
                                                                                                                                
2:09:58 PM                                                                                                                    
CHAIR COSTELLO reconvened the meeting and announced the                                                                         
consideration of SJR 7.                                                                                                         
                                                                                                                                
2:10:23 PM                                                                                                                    
SENATOR MEYER advised that he took over as prime sponsor of SJR
 after the initial sponsor resigned his seat. He introduced the                                                                
legislation speaking to the following sponsor statement:                                                                        
                                                                                                                                
     This bill proposes an amendment  to the Constitution of                                                                    
     the State  of Alaska  regarding the power  of taxation.                                                                    
     If  passed, the  Division of  Elections Director  would                                                                    
     place a  question on  the ballot  that goes  before the                                                                    
     voters  at  the  next general  election.  The  question                                                                    
     would amend  Article IX, sec.  1 to require  a majority                                                                    
     of voters  to approve any  law establishing a  tax, tax                                                                    
     increase, or another revenue-producing measure.                                                                            
                                                                                                                                
     There  are a  number of  ways governments  have weighed                                                                    
     the  opinion  of  its  people on  taxes.  Many  may  be                                                                    
     familiar with the Anchorage  Municipality which uses an                                                                    
     advisory vote  on any tax increase.  Or the proposition                                                                    
     process that  may alter or do  away with a tax.  In the                                                                    
     state  of  Colorado,  voters enshrined  the  Taxpayer's                                                                    
     Bill of  Rights (TABOR) into the  state constitution in                                                                    
     1992.  The premise  was simple,  if  lawmakers want  to                                                                    
     raise taxes or  issue debt, they should  ask voters for                                                                    
     permission.                                                                                                                
                                                                                                                                
     It has  been many years  since the State of  Alaska has                                                                    
     levied an individual income tax  on its citizens. There                                                                    
     has  been  much  discussion  in   this  era  of  budget                                                                    
     deficits  on revenue  generation by  the implementation                                                                    
     of  and/or increase  in taxes.  The  intention of  this                                                                    
     legislation  is   to  explore  the  idea   that  before                                                                    
     enacting  a new  tax,  be it  an  individual income  or                                                                    
     statewide sales  tax, it should  be ratified by  a vote                                                                    
     of  the  people.  Voters are  being  asked  to  approve                                                                    
     budget   timelines,  spending   caps,   and  per   diem                                                                    
     spending; it makes sense that  we consult the people of                                                                    
     Alaska on taxation.                                                                                                        
                                                                                                                                
SENATOR MEYER  noted that  he introduced SB  130 that  would have                                                               
placed  an  advisory  vote  in  statute but  placing  it  in  the                                                               
constitution is probably a better idea.                                                                                         
                                                                                                                                
2:13:45 PM                                                                                                                    
CHRISTINE  MARASIGAN, Staff,  Senator Kevin  Meyer, Alaska  State                                                               
Legislature, Juneau,  Alaska, delivered a sectional  analysis for                                                               
SJR 7 stating the following:                                                                                                    
                                                                                                                                
     Section 1 regards taxing power.  The law establishing a                                                                    
     tax,  a  tax  increase, or  another  revenue  producing                                                                    
     measure  shall not  take effect  until approved  by the                                                                    
     voters of the state by a  majority of the votes cast on                                                                    
     the proposed law.                                                                                                          
                                                                                                                                
     Section  2 simply  states that  amendment  will be  put                                                                    
     onto  the  ballot  in  the  next  general  election  in                                                                    
     conformity with [Art. XIII, Sec.  1 Constitution of the                                                                    
     State of Alaska].                                                                                                          
                                                                                                                                
2:14:31 PM                                                                                                                    
SENATOR STEVENS asked if this applies  to any kind of tax as well                                                               
as any change to an existing tax.                                                                                               
                                                                                                                                
SENATOR  MEYER  replied  that  is   the  way  the  resolution  is                                                               
currently  written, but  his intent  is  to focus  solely on  the                                                               
broad-based sales and income taxes.                                                                                             
                                                                                                                                
CHAIR  COSTELLO asked  it was  the  intent to  provide no  public                                                               
education; it would be available for any group to promote.                                                                      
                                                                                                                                
MS. MARASIGAN said  that when the sponsor  consulted the Division                                                               
of  Elections regarding  SB 130  he was  advised that  the matter                                                               
would  simply be  placed on  the ballot.  That did  not bring  an                                                               
additional cost. The division also  broke down what it would cost                                                               
to place the measure on the ballot in a special election.                                                                       
                                                                                                                                
CHAIR COSTELLO  asked if the  sponsor had received  comments that                                                               
this might  conflict with the  legislature's power to  budget and                                                               
tax.                                                                                                                            
                                                                                                                                
MS. MARASIGAN admitted to  running into constitutional roadblocks                                                               
when  she  and  the  sponsor  initially  had  conversations  with                                                               
legislative legal  about drafting SB  130. They were  offered two                                                               
options: option 1 was to take  an advisory vote, and option 2 was                                                               
to amend the constitution.                                                                                                      
                                                                                                                                
2:18:35 PM                                                                                                                    
CHAIR COSTELLO stated she would hold SJR 7 in committee.