SENATE BILL REPORT

SJR 8231

BYSenators McDonald, Owen, McCaslin, Stratton, Craswell, Rasmussen, Bailey, Smitherman, Johnson, Conner, Smith, Anderson, Kiskaddon, von Reichbauer and Zimmerman

Requiring a two-thirds vote of the legislature to enact tax legislation.

Senate Committee on Ways & Means

Senate Hearing Date(s):January 13, 1988; January 28, 1988

Majority Report:  That Substitute Senate Joint Resolution No. 8231 be substituted therefor, and the substitute resolution do pass.

      Signed by McDonald, Chairman; Craswell, Vice Chairman; Bluechel, Cantu, Deccio, Hayner, Johnson, Lee, Newhouse, Saling, Smith, Zimmerman.

Minority Report:  Do not pass.

      Signed by Senators Bauer, Fleming, Gaspard, Moore, Talmadge, Vognild, Williams, Wojahn.

Senate Staff:Gary Benson (786-7715)

                  February 1, 1988

AS REPORTED BY COMMITTEE ON WAYS & MEANS, JANUARY 28, 1988

BACKGROUND:

To change Washington State's tax laws requires a simple majority of elected representatives and senators.  This is the same requirement as most other legislation.  To sell bonds without a vote of the people requires a favorable vote of three- fifths of the members elected to each house.  To change state statutes expanding the definition of industrial development projects for non-recourse revenue bond purposes requires a vote of three-fifths of the elected members of the Legislature.  The authorization of lotteries requires an affirmative vote of three- fifths of the members of each house of the Legislature. Proposed amendments to the state's constitution requires a two- thirds vote of the members elected to each of the two houses and then needs to be submitted to the voters.

In an effort to make it more difficult to increase their state's taxes, several states have adopted "super majority" requirements.  Rather than a simple majority of the legislators elected needing to vote for a tax increase, these states require a three-fifths to three-fourths favorable vote. 

SUMMARY:

To implement a new tax or modify an existing tax (either increase or decrease the tax rate or base) would require a favorable vote of two-thirds of the members elected to each house of the Legislature.  A tax does not mean a user fee.

EFFECT OF PROPOSED SUBSTITUTE:

In addition to the above, it is made clear that only a change in the base or rate of existing tax requires a two-thirds vote.  "User fee" is changed to "fee for services."

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: no one