AR HJR1005

Proposed constitutional amendment requires a three-fourths (3/4) vote of each house of the General Assembly to establish new taxes or fees, increase tax or fee rates, extend expiring taxes or fees, or enact changes that increase state revenue, effective for fiscal years beginning July 1, 2027

Limits annual increases in general revenue expenditures to no more than 2% compared to the preceding fiscal year, with an exception for one-time expenditures for settlement of claims against the state

Requires the Treasurer of State to transfer excess revenues first to the Catastrophic Reserve Fund until it reaches 20% of the prior year's net general revenue expenditures, with those funds accessible only for emergencies upon a three-fourths vote of the General Assembly

Mandates additional excess revenues be transferred to the Budget Stabilization Trust Fund until it reaches 20% of the prior year's net general revenue expenditures, with any remaining surplus refunded to taxpayers through temporary reductions in income tax and sales tax rates

Repeals the existing constitutional provision (Article 5, § 38) regarding tax increases and voter approval, replacing it with the new supermajority requirements