Sponsor Statement for HJR 7

Proposing an amendment to the Constitution of the State of Alaska prohibiting the imposition of state personal income taxation, state ad valorem taxation on real property, or state retail sales taxation without the approval of the voters of the state.

With the continued successful production of North Slope oil, $20 billion in their Permanent Fund and another $3 billion plus in the budget reserve, Alaskans enjoy one of the lowest rates of personal taxation in the US.

We should keep it that way.

On the other hand, Alaskans have hardly any protection against the imposition of taxation by the Legislature, certainly not the kind of protection other states’ citizens have. In Alaska, a simple majority of the House and Senate can approve and impose a new tax or raise an existing tax. In many other states, a supermajority vote of anywhere from 60 percent to 80 percent of the elected representatives is required to put new and higher taxes in effect.

While there has not been a serious threat of legislative imposition of the income tax since it was repealed in 1980, bills proposing the personal income tax have been introduced every Legislature since then. Perhaps the greatest effort was made in 1987-88 by then-Governor Steve Cowper, who went so far as to establish an income tax task force which tried to drum up support around the state for the idea; however, the majority in the Legislature has not been inclined to support the income tax.

I believe it is time for the Legislature to give back to the people some of their taxing powers, which few people realize were given away to the Legislature when the vote for statehood took place. The constitutional amendment proposed by HJR 7 would simply require the approval of the majority of Alaskan voters before any of three kinds of statewide taxes could take effect. I am firmly convinced that Alaska’s voters have the wisdom to understand the state’s financial picture; if that picture becomes so bleak as to require new taxes, the voters should have the final authority to approve them.