8 LONG TITLE
9 General Description:
10 This joint resolution of the Legislature proposes to amend the Utah Constitution to
11 modify a provision relating to taxes on intangible property and income.
12 Highlighted Provisions:
13 This resolution proposes to amend the Utah Constitution to:
14 ▸ expand the uses of revenue from taxes on intangible property and income to include
15 providing services for the poor, disabled, and elderly.
16 Special Clauses:
17 This resolution directs the lieutenant governor to submit this proposal to voters.
18 This resolution provides a contingent effective date of January 1, 2021 for this proposal.
19 Utah Constitution Sections Affected:
21 ARTICLE XIII, SECTION 5
23 Be it resolved by the Legislature of the state of Utah, two-thirds of all members elected to each
24 of the two houses voting in favor thereof:
25 Section 1. It is proposed to amend Utah Constitution, Article XIII, Section 5, to read:
26 Article XIII, Section 5. [Use and amount of taxes and expenditures.]
27 (1) (a) The Legislature shall provide by statute for an annual tax sufficient, with other
28 revenues, to defray the estimated ordinary expenses of the State for each fiscal year.
29 (b) If the ordinary expenses of the State will exceed revenues for a fiscal year, the
30 Governor shall:
31 (i) reduce all State expenditures on a pro rata basis, except for expenditures for debt of
32 the State; or
33 (ii) convene the Legislature into session under Article VII, Section 6 to address the
35 (2) (a) For any fiscal year, the Legislature may not make an appropriation or authorize
36 an expenditure if the State's expenditure exceeds the total tax provided for by statute and
37 applicable to the particular appropriation or expenditure.
38 (b) Subsection (2)(a) does not apply to an appropriation or expenditure to suppress
39 insurrection, defend the State, or assist in defending the United States in time of war.
40 (3) For any debt of the State, the Legislature shall provide by statute for an annual tax
41 sufficient to pay:
42 (a) the annual interest; and
43 (b) the principal within 20 years after the final passage of the statute creating the debt.
44 (4) Except as provided in Article X, Section 5, Subsection (5)(a), the Legislature may
45 not impose a tax for the purpose of a political subdivision of the State, but may by statute
46 authorize political subdivisions of the State to assess and collect taxes for their own purposes.
47 (5) [
49 (a) to support the systems of public education and higher education as defined in
50 Article X, Section 2; or
51 (b) to provide services for the poor, the disabled, or the elderly.
52 (6) Proceeds from fees, taxes, and other charges related to the operation of motor
53 vehicles on public highways and proceeds from an excise tax on liquid motor fuel used to
54 propel those motor vehicles shall be used for:
55 (a) statutory refunds and adjustments and costs of collection and administration;
56 (b) the construction, maintenance, and repair of State and local roads, including
57 payment for property taken for or damaged by rights-of-way and for associated administrative
59 (c) driver education;
60 (d) enforcement of state motor vehicle and traffic laws; and
61 (e) the payment of the principal of and interest on any obligation of the State or a city
62 or county, issued for any of the purposes set forth in Subsection (6)(b) and to which any of the
63 fees, taxes, or other charges described in this Subsection (6) have been pledged, including any
64 paid to the State or a city or county, as provided by statute.
65 (7) Fees and taxes on tangible personal property imposed under Section 2, Subsection
66 (6) of this article are not subject to Subsection (6) of this Section 5 and shall be distributed to
67 the taxing districts in which the property is located in the same proportion as that in which the
68 revenue collected from real property tax is distributed.
69 (8) A political subdivision of the State may share its tax and other revenues with
70 another political subdivision of the State as provided by statute.
71 (9) Beginning July 1, 2016, the aggregate annual revenue from all severance taxes, as
72 those taxes are defined by statute, except revenue that by statute is used for purposes related to
73 any federally recognized Indian tribe, shall be deposited annually into the permanent State trust
74 fund under Article XXII, Section 4, as follows:
75 (a) 25% of the first $50,000,000 of aggregate annual revenue;
76 (b) 50% of the next $50,000,000 of aggregate annual revenue; and
77 (c) 75% of the aggregate annual revenue that exceeds $100,000,000.
78 Section 2. Submittal to voters.
79 The lieutenant governor is directed to submit this proposed amendment to the voters of
80 the state at the next regular general election in the manner provided by law.
81 Section 3. Contingent effective date.
82 If the amendment proposed by this joint resolution is approved by a majority of those
83 voting on it at the next regular general election, the amendment shall take effect on January 1,