02/27/1997 08:05 AM House STA

 HJR 7 - VOTER APPROVAL FOR NEW TAXES                                        
                                                                               
 The next order of business to come before the House State Affairs             
 Standing Committee was HJR 7, Proposing an amendment to the                   
 Constitution of the State of Alaska prohibiting the imposition of             
 state personal income taxation, state ad valorem taxation on real             
 property, or state retail sales taxation without the approval of              
 the voters of the state.                                                      
                                                                               
 CHAIR JAMES called on Representative Terry Martin, sponsor of HJR
, to present the resolution.                                                 
                                                                               
 Number 0774                                                                   
                                                                               
 REPRESENTATIVE TERRY MARTIN, Alaska State Legislature, explained              
 HJR 7 was another principle that should be ascertained as a                   
 constitutional guarantee.  The Founding Fathers wondered to what              
 degree an elected official could pry people of their earnings                 
 through taxation.  Most other states had protections so that it was           
 not as easy to get into a person's private earnings, such as,                 
 savings and retirement pensions.  Most states required a two-thirds           
 vote of both houses before a new tax was instituted.  And, many               
 states also required the approval of the people before instituting            
 a new tax.  The people usually approved of a new tax if it was                
 reasonable.  Most taxes, however, were not approved.  In Alaska, a            
 simple majority of the legislators was required to impose a new tax           
 at anytime.  "That's kind of scary, especially when we don't need             
 the money."  And, there was a constant threat to the people for a             
 taxation in Alaska; the richest state in the country.                         
                                                                               
 Number 0895                                                                   
                                                                               
 REPRESENTATIVE HODGINS announced he intended to become a co-sponsor           
 of HJR 7 because the question of taxation should always rest with             
 the individual on the street.                                                 
                                                                               
 Number 0935                                                                   
                                                                               
 REPRESENTATIVE HODGINS moved that HJR 7 move from the committee               
 with the attached fiscal note(s) and individual recommendations.              
                                                                               
 Number 0947                                                                   
                                                                               
 REPRESENTATIVE ELTON objected.  A roll call vote was taken.                   
 Representatives James, Dyson, Hodgins and Ivan voted in favor of              
 the motion.  Representatives Berkowitz and Elton voted against the            
 motion.  House Joint Resolution 7 was so moved from the House State           
 Affairs Standing Committee.