CHAPTER 774
HOUSE JOINT RESOLUTION NO. 647
Proposing an amendment to Section 8 of Article X of the Constitution of Virginia, relating to limit of tax or revenue and the Revenue Stabilization Fund.
Agreed to by the House of Delegates, February 10, 2009
Agreed to by the Senate, February 23, 2009
RESOLVED by the House of Delegates, the Senate concurring, a majority of the members elected to each house agreeing, That the following amendment to the Constitution of Virginia be, and the same hereby is, proposed and referred to the General Assembly at its first regular session held after the next general election of members of the House of Delegates for its concurrence in conformity with the provisions of Section 1 of Article XII of the Constitution of Virginia, namely:
Amend Section 8 of Article X of the Constitution of Virginia as follows:
ARTICLE X
TAXATION AND FINANCE
Section 8. Limit of tax or revenue; Revenue Stabilization Fund.
No other or greater amount of tax or revenues shall, at any time, be levied than may be required for the necessary expenses of the government, or to pay the indebtedness of the Commonwealth.
The General Assembly shall establish the Revenue Stabilization
Fund. The Fund shall consist of an amount not to exceed ten
fifteen percent of the Commonwealth's average annual tax revenues derived
from taxes on income and retail sales as certified by the Auditor of Public
Accounts for the three fiscal years immediately preceding. The Auditor of
Public Accounts shall compute the ten fifteen percent limitation
of such fund annually and report to the General Assembly not later than the
first day of December. "Certified tax revenues" means the
Commonwealth's annual tax revenues derived from taxes on income and retail
sales as certified by the Auditor of Public Accounts.
The General Assembly shall make deposits to the Fund to equal
at least fifty percent of the product of the certified tax revenues collected
in the most recently ended fiscal year times the difference between the annual
percentage increase in the certified tax revenues collected for the most
recently ended fiscal year and the average annual percentage increase in the
certified tax revenues collected in the six fiscal years immediately preceding
the most recently ended fiscal year. However, growth in certified tax
revenues, which is the result of either increases in tax rates on income or
retail sales or the repeal of exemptions therefrom, may be excluded, in whole
or in part, from the computation immediately preceding for a period of time not
to exceed six calendar years from the calendar year in which such tax rate
increase or exemption repeal was effective. Additional appropriations may
be made at any time so long as the ten fifteen percent limitation
established herein is not exceeded. All interest earned on the Fund
shall be part thereof; however, if the Fund's balance exceeds the limitation,
the amount in excess of the limitation shall be paid into the general fund
after appropriation by the General Assembly.
The General Assembly may appropriate an amount for transfer from the Fund to compensate for no more than one-half of the difference between the total general fund revenues appropriated and a revised general fund revenue forecast presented to the General Assembly prior to or during a subsequent regular or special legislative session. However, no transfer shall be made unless the general fund revenues appropriated exceed such revised general fund revenue forecast by more than two percent of certified tax revenues collected in the most recently ended fiscal year. Furthermore, no appropriation or transfer from such fund in any fiscal year shall exceed more than one-half of the balance of the Revenue Stabilization Fund. The General Assembly may enact such laws as may be necessary and appropriate to implement the Fund.