Senate amendments make the following changes to the 3rd edition.
Senate amendment #2 makes technical changes.
Senate amendment #3 moves the date that proposed constitutional amendments are submitted to voters from the 2016 presidential primary election to the statewide general election of November 8, 2016.
Bill Summaries: S 607 TAXPAYER PROTECTION ACT. (NEW)
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Tracking:
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Bill S 607 (2015-2016)Summary date: Aug 11 2015 - View Summary
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Bill S 607 (2015-2016)Summary date: Aug 10 2015 - View Summary
Senate amendment makes the following changes to the 2nd edition.
Deletes all content of the previous edition and replaces it with the following.
Subject to approval by a majority of votes cast at the time of the 2016 presidential primary election, the act amends the North Carolina constitution by enacting a new Article V-A, amending Section 2 of Article V, and amending Section 22 of Article II, as follows.
Adds new Article V-A, Taxpayer Protections. Section 1 of the Article limits the maximum annual percentage increase in State fiscal year spending to the average inflation growth for the prior three calendar years plus the average growth in State population for the prior three fiscal years. Defines fiscal year spending, inflation growth, and population. Gives the General Assembly the power to increase the spending limit by an act passed by two-thirds of all the members of each house. Applies to fiscal years beginning on or after July 1, 2017.
Section 2 of the new Article establishes the Emergency Savings Reserve Fund (Fund) and requires the General Assembly to reserve 2% of the amount appropriated from the General Fund (excluding General Fund receipts) to the Fund for capital and operating expenses for the prior fiscal year until the Fund contains 12.5% of the amount appropriated from the General Fund (excluding General Fund receipts) for capital and operating expenses for the prior fiscal year. Allows the General Assembly to decline to reserve funds to or provide for the expenditure of funds from the Fund; acts that do either of these things must be approved by two-thirds of all the members of each house. Prohibits money from being drawn from the Fund except under appropriations from the Fund passed by two-thirds vote of all the members of each house. Specifies that the Governor does not have the power to (1) expend money in the Fund without an appropriation by the General Assembly or (2) divert money appropriated from the Fund for other purposes. Applies to fiscal years beginning on or after July 1, 2016.
Section 3 of the new Article limits the income tax rate to 5%. Applies to taxable years beginning on or after January 1, 2020.
Amends Section 2 of Article V to provide that tax on income is subject to the provisions of Section 1 of new Article V-A. Applies to taxable years beginning on or after January 1, 2020.
Adds new subdivisions to Section 22 of Article II requiring bills that increase the fiscal year spending limit and do not contain any other matter, and bills declining to reserve funds to the Funds, providing for the expenditure of funds from the Fund, or both, to be read three times in each house and be signed by the presiding officers of both houses. These provisions apply upon certification by the Secretary of State.
Sets out the requirements for presenting the amendments to voters. Requires that if a majority of votes cast on the question are in favor of the amendments in the act that the amendments be certified to the Secretary of State.
Changes the act's short and long titles.
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Bill S 607 (2015-2016)Summary date: Aug 6 2015 - View Summary
Senate committee substitute makes the following changes to the 1st edition.
Amends the short and long titles.
Deletes all of the provisions of the previous edition and replaces them with the following.
Subject to voter approval, amends Section 2 of Article V of the NC Constitution to limit the income tax rate to 5% (was, 10%) of net income for tax years beginning on or after January 1, 2020. Sets out the procedure for putting the constitutional amendment before the voters at the March 15, 2016, general election.
Subject to voter approval, amends Article V of the NC Constitution by adding a new Section 15 to create an Emergency Savings Reserve Fund (Fund) in the state treasury. Provides that such reserve funds can only be utilized upon a bill being passed by two-thirds votes of each chamber of the General Assembly. Provides that the Governor is not authorized to expend or divert the money in the Fund without legislative approval and appropriation. Also amends Section 22 of Article II to require bills that provide for the expenditure of funds from the Fund and no other matter must be read three times in each chamber and be signed by presiding officers before it becomes law. Sets out the procedure for putting the constitutional amendments before the voters at the March 15, 2016, general election. Provides that, if approved by voters, the amendments will apply to fiscal years beginning on or after July 1, 2016.
Subject to voter approval, amends Article V of the NC Constitution by adding a new Section 16 to limit the growth on state spending, providing that maximum annual percentage increases in state fiscal year spending cannot exceed inflation growth plus the growth in State population from the previous fiscal year. Provides that the spending limit can only be increased by an act passed by two-thirds of the members in each chamber. Also amends Section 22 of Article II to require bills that provide for an increase to the spending limit be read three times in each chamber and be signed by presiding officers before they become law. Sets out the procedure for putting the constitutional amendments before the voters at the March 15, 2016, general election. Provides that, if approved by voters, the amendments will apply to fiscal years beginning on or after July 1, 2017.
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Bill S 607 (2015-2016)Summary date: Mar 30 2015 - View Summary
Subject to approval by voters at the statewide general election on November 4, 2016, amends Section 23 to Article II of the North Carolina Constitution to require a two-thirds vote by each house of the General Assembly to pass any legislation that would increase the rate of tax for any state or local income taxes. If approved, effective January 1, 2017, and applies to legislation enacted on or after that date.