Taxpayer's bill of rights and taxpayer standing.

21LSO-0413
2021
STATE OF WYOMING
21LSO-0413
Numbered
2.0

House Joint Resolution NO. HJ0015

Taxpayer's bill of rights and taxpayer standing.

Sponsored by: Representative(s) Gray, Bear and Jennings and Senator(s) Biteman

A JOINT RESOLUTION

for

A JOINT RESOLUTION proposing to amend the constitution by creating a new section establishing the taxpayer's bill of rights and taxpayer standing; prohibiting any tax increase by the state or any local government or increase of debt unless approved by the voters; specifying ballot requirements; providing for the refund of excess taxes; providing for emergency taxes; prohibiting increasing state expenditures; providing for distribution of surplus state funds; providing definitions; authorizing persons to commence a civil action against state governmental entities and officials as specified; allowing the state to intervene in actions; and providing for an award of litigation costs as specified.

BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF WYOMING,
two-thirds of all the members of the two houses, voting separately, concurring therein:

Section 1.

The following proposal to amend Wyoming Constitution, Article 1, by creating a new Section 40 is proposed for submission to the electors of the State of Wyoming at the next general election for approval or rejection to become valid as a part of the Constitution if ratified by a majority of the electors at the election:

Article 1, Section 40.

Taxpayer's bill of rights and taxpayer standing.

(a)

Taxpayer's bill of rights. The following shall apply:

(i)

Districts shall have voter approval in advance for:

(A)

Any new tax, tax rate increase, mill levy above the mill levy for the prior year, valuation or
assessment ratio increase for any property class, extension of an expiring tax or adoption of any tax policy directly causing a net tax revenue gain to any district; and

(B)

The creation of any multiple fiscal year direct or indirect district debt if the district does not have adequate present cash reserves pledged irrevocably and held for payments on the debt in all future years, except for refinancing district bonded debt at a lower interest rate or adding new employees to existing district pension plans.

(ii)

The requirements of paragraph (i) of this subsection requiring voter approval shall not apply:

(A)

To an emergency tax or budget increase. An emergency shall be declared only after approval by a two
‑
thirds (2/3) vote of all members of each of the two (2) houses of the Wyoming legislature, voting separately, and signature by the governor for a state tax or budget increase or by two
‑
thirds (2/3) of the members elected to the governing body of any other district imposing or increasing a tax. Any revenue raised under this subparagraph that is not expended
on the emergency for which it was raised shall be refunded to taxpayers in the fiscal year following the expiration of the emergency. An emergency tax imposed under this subsection shall be approved by the voters at the next regular election that is more than sixty (60) days following the declaration of the emergency. If the emergency is not approved under this subsection, the emergency tax shall end on the first day of the month immediately following the month the election results are reported; or

(B)

When annual district revenue is less than annual payments on general obligation bonds, pensions and final court judgments. This paragraph shall only apply for the amount of time necessary to address the deficiency.

(iii)

Ballot issues shall be decided at a state general election, biennial local district election or on the first Tuesday in November of odd
‑
numbered years. At least thirty (30) days before a ballot issue election, districts shall mail at the least cost, and as a package where districts with ballot issues overlap, a titled notice or set of notices addressed to "All Registered Voters" at each address with one
(1) or more active registered electors. Title notices shall have this order of preference: "NOTICE OF ELECTION TO INCREASE TAXES/TO EXTEND TAXES/TO INCREASE DEBT/ON A CITIZEN PETITION/ON A REFERRED MEASURE." Except for district voter approved additions, notices shall include only:

(A)

The election date, hours, ballot title, text of the ballot and local election office address and telephone number;

(B)

For proposed district tax or bonded debt increases, the estimated or actual total of district fiscal year spending for the current year and each of the past four (4) years, and the overall percentage and dollar change;

(C)

For the first full fiscal year of each proposed district tax increase, an estimate of the maximum dollar amount of each increase and of district fiscal year spending without the increase;

(D)

For proposed district bonded debt, the principal amount of proposed debt and the maximum annual and
total district repayment cost, the principal balance of total current district bonded debt and the maximum annual and remaining total district repayment cost;

(E)

Two (2) summaries, of not more than five hundred (500) words each, one (1) for and one (1) against the proposal, of written comments filed with the election officer not more than forty
‑
five (45) days before the election. No summary shall include the name of any person or private group or any endorsement of or resolution against the proposal. Petition representatives following these rules shall write the summary for the petition. The election officer shall maintain and accurately summarize all other relevant written comments.

(iv)

Unless authorized by later voter approval, if a tax increase or fiscal year spending exceeds the estimate provided in subparagraph (iii)(C) of this subsection for the same fiscal year, the tax increase shall thereafter be reduced up to one hundred percent (100%) in proportion to the combined excess revenue, and the combined excess revenue shall be refunded to taxpayers in the next fiscal year;

(v)

District bonded debt shall not be issued on terms that could exceed its share of its maximum repayment costs as provided in subparagraph (iii)(D) of this subsection;

(vi)

Ballot titles for tax or bonded debt increases under this section shall begin, "SHALL (DISTRICT) TAXES BE INCREASED (amount of first year dollar amount, or if phased in, the final full fiscal year dollar amount) ANNUALLY?" or "SHALL (DISTRICT) DEBT BE INCREASED (principal amount), WITH A REPAYMENT COST OF (maximum total district cost)?";

(vii)

In addition to the limits on increasing taxes under paragraph (i) of this subsection, the maximum annual percentage change in state fiscal year spending shall not exceed inflation in the prior calendar year plus three-fourths (3/4) of any positive percentage change in state population in the prior calendar year, adjusted for revenue changes approved by voters after the effective date of this section. Expenditures shall be made using a zero
‑
based
budgeting process as determined by the legislature. Any negative population change shall not be deducted in the calculation of the maximum spending limit under this subsection. Population shall be determined by annual federal census estimates and the population shall be adjusted every decade to match the federal census;

(viii)

Any surplus annual funds after the spending limits under paragraph (vii) of this subsection are met shall be distributed as determined by the legislature in the following amounts:

(A)

Eighty percent (80%) to eighty-five percent (85%) of the surplus shall be deposited into reserve or inviolate accounts, provided that not more than fifteen percent (15%) of this amount shall be placed in the permanent Wyoming mineral trust fund or other inviolate account. Funds deposited into reserve or inviolate accounts under this subsection shall not be expended in the same fiscal biennium that the funds were determined to be surplus annual funds;

(B)

Ten percent (10%) to fifteen percent (15%) of the surplus shall be deposited into capital accounts for future construction projects or other future improvements. Funds deposited into capital accounts under this subsection shall not be expended in the same fiscal biennium that the funds were determined to be surplus annual funds;

(C)

Five percent (5%) shall be returned to the voters of Wyoming via a rebate check.

(ix)

The intent of this section is to reasonably restrain the growth of government. All provisions of this section shall supersede conflicting state constitutional provisions. Any other limits on district revenue, spending and debt shall be removed or limited only through voter approval under paragraph (iii) of this subsection;

(x)

Individual or class action enforcement suits may be filed for any violation of this section and shall have the highest civil priority of resolution. Successful plaintiffs under this paragraph shall be awarded allowed
costs and reasonable attorney fees. A district shall not be entitled to costs or fees for a suit under this paragraph unless the suit is ruled frivolous. Revenue collected, kept or spent illegally before a suit is filed under this paragraph shall be refunded with ten percent (10%) annual simple interest from the initial conduct. Subject to judicial review, districts may use any reasonable method for refunds under this paragraph, including temporary tax credits or rate reductions;

(xi)

Nothing in this section shall be interpreted to increase the taxing authority of any district prior to the effective date of this section;

(xii)

As used in this subsection:

(A)

"District" means the state, any local government, political subdivision or other entity created by a state or local government that has authority to charge or impose a tax;

(B)

"Emergency" shall not include ordinary economic conditions including a structural budget deficit or salary or benefit increases;

(C)

"Fiscal year spending" means all state expenditures and appropriations including expenditures from reserves. "Fiscal year spending" shall not include:

(I)

Appropriations for public elementary and secondary school operations or capital construction;

(II)

Refunds made in the current fiscal year or required to be made in a succeeding fiscal year;

(III)

Expenditures made from gifts or bequests made for purposes specified by the donor including any proceeds from those gifts or bequests;

(IV)

Expenditures or appropriations of funds received from the federal government for specific
purposes.

This subparagraph shall not apply to federal mineral royalties or coal lease bonus payments;

(V)

Collections for another government;

(VI)

Pension contributions by employees, pension fund distributions and pension fund earnings;

(VII)

Damage awards;

(VIII)

Property sales;

(IX)

Principal and interest on bonded indebtedness;

(X)

Expenditures funded by unemployment and disability insurance funds;

(XI)

Expenditures for tax relief;

(XII)

Workers' compensation benefits.

(D)

"Inflation" means the percentage change in the annualized Wyoming cost-of-living index produced for the second quarter by a state agency specified by law;

(E)

"Tax" means any financial charge, however denominated, imposed by a district and from which revenue accrues to government, other than:

(I)

The price paid in a voluntary transaction in a competitive market where the item for which the price is being imposed is not monopolized by government, including educational tuition; or

(II)

Civil and criminal fines and other charges collected in cases of restitution or violation of law or contract.

(b)

Taxpayer standing. The following shall apply:

(i)

Any citizen of the state of Wyoming may commence a civil action on his own behalf against the state
of Wyoming, any state governmental entity or official for alleged violations of the constitution or laws of the state of Wyoming or to compel compliance with the constitution or laws of the state of Wyoming;

(ii)

Any action filed pursuant to this subsection shall be filed in the district court for Laramie county;

(iii)

The state of Wyoming may intervene as a matter of right in any action filed pursuant to this subsection;

(iv)

The court, in issuing any final order in any action brought pursuant to this subsection, may award costs of litigation including attorney and expert witness fees to any party;

(v)

The availability of other judicial review shall not be construed to limit the operation of rights established in this subsection;

(vi)

Nothing in this subsection shall limit any existing civil or criminal penalty or right arising out of a violation of any provision of the constitution or laws of the state of Wyoming pertaining to separation of powers, procurement and state contracts.

Section 2.

That the Secretary of State shall endorse the following statement on the proposed amendment:

The adoption of this amendment would establish the taxpayer's bill of rights and taxpayer standing. The taxpayer's bill of rights prohibits state and local governments from imposing new taxes, increasing existing taxes or increasing debt without voter approval. The taxpayer's bill of rights establishes requirements for ballots and provides for a refund of taxes collected in excess of the maximum amount specified on the ballot. The amendment would also limit state spending and would specify how surplus state funds are required to be distributed. The taxpayer's bill of rights authorizes emergency taxes in specified circumstances and provides that emergency taxes shall expire if not approved by voters at the next election. Taxpayer standing under this
amendment would
authorize citizens to commence general civil actions against state governmental entities and officials and allow the state to intervene in those actions.

(END)

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