HCR 2016 Summary

• Proposes adding Section 22.1 to Article IX of the Arizona Constitution requiring a two-thirds affirmative vote in both legislative houses to enact measures that decrease state revenues.

• Applies to measures creating new tax expenditures, increasing existing tax expenditure amounts, expanding the number of taxpayers eligible for tax expenditures, or reducing any tax rate.

• If the Governor vetoes a measure that received the required two-thirds vote, it requires a three-fourths affirmative vote in both houses to override the veto.

• Defines "tax expenditure" as any tax provision exempting persons, income, goods, services or property from established taxes, including deductions, credits, exclusions and exemptions, with exceptions for provisions preventing unintended technical consequences or reflecting constitutional requirements.

• Requires submission of the proposition to Arizona voters at the next general election.