AR SJR17

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

Caps annual increases in general revenue expenditures at 2% compared to the prior fiscal year, with exceptions for one-time expenditures such as settlement of claims against the state

Creates mandatory transfers of excess revenue first to a Catastrophic Reserve Fund (maintained at 20% of prior year expenditures), accessible only for emergencies with a 3/4 vote of the legislature

Requires additional excess revenue be transferred to the Budget Stabilization Trust Fund (also maintained at 20% of prior year expenditures), with remaining surplus refunded to taxpayers through temporary reductions in income and sales/use tax rates

Repeals Article 5, § 38 of the Arkansas Constitution regarding voter approval of tax rate increases, replacing it with the new supermajority legislative requirements