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 7 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.