Article IX
Finance and Taxation
SECTION 1. TAXING POWER. The power of taxation
shall never be surrendered. This power shall not be
suspended or contracted away, except as provided in this
article.
SECTION 2. NONDISCRIMINATION. The lands and other
property belonging to citizens of the United States residing
without the State shall never be taxed at a higher rate than
the lands and other property belonging to the residents of
the State.
SECTION 3. ASSESSMENT STANDARDS. Standards for
appraisal of all property assessed by the State or its
political subdivisions shall be prescribed by law.
SECTION 4. EXEMPTIONS. The real and personal property
of the State or its political subdivisions shall be exempt
from taxation under conditions and exceptions which may be
provided by law. All, or any portion of, property used
exclusively for non-profit religious, charitable, cemetery,
or educational purposes, as defined by law, shall be exempt
from taxation. Other exemptions of like or different kind
may be granted by general law. All valid existing exemptions
shall be retained until otherwise provided by law.
SECTION 5. INTERESTS IN GOVERNMENT PROPERTY. Private
leaseholds, contracts, or interests in land or property
owned or held by the United States, the State, or its
political subdivisions, shall be taxable to the extent of
the interests.
SECTION 6. PUBLIC PURPOSE. No tax shall be levied, or
appropriation of public money made, or public property
transferred, nor shall the public credit be used, except for
a public purpose.
SECTION 7. DEDICATED FUNDS. The proceeds of any state
tax or license shall not be dedicated to any special
purpose, except as provided in Section 15 of this article or
when required by the federal government for state
participation in federal programs. This provision shall not
prohibit the continuance of any dedication for special
purposes existing upon the date of ratification of this
section by the people of Alaska.
SECTION 8. STATE DEBT. No state debt shall be
contracted unless authorized by law for capital improvements
or unless authorized by law for housing loans for veterans,
and ratified by a majority of the qualified voters of the
State who vote on the question. The State may, as provided
by law and without ratification, contract debt for the
purpose of repelling invasion, suppressing insurrection,
defending the State in war, meeting natural disasters, or
redeeming indebtedness outstanding at the time this
constitution becomes effective.
SECTION 9. LOCAL DEBTS. No debt shall be contracted
by any political subdivision of the State, unless authorized
for capital improvements by its governing body and ratified
by a majority vote of those qualified to vote and voting on
the question.
SECTION 10. INTERIM BORROWING. The State and its
political subdivisions may borrow money to meet
appropriations for any fiscal year in anticipation of the
collection of the revenues for that year, but all debt so
contracted shall be paid before the end of the next fiscal
year.
SECTION 11. EXCEPTIONS. The restrictions on
contracting debt do not apply to debt incurred through the
issuance of revenue bonds by a public enterprise or public
corporation of the State or a political subdivision, when
the only security is the revenues of the enterprise or
corporation. The restrictions do not apply to indebtedness
to be paid from special assessments on the benefited
property, nor do they apply to refunding indebtedness of the
State or its political subdivisions.
SECTION 12. BUDGET. The governor shall submit to the
legislature, at a time fixed by law, a budget for the next
fiscal year setting forth all proposed expenditures and
anticipated income of all departments, offices, and agencies
of the State. The governor, at the same time, shall submit a
general appropriation bill to authorize the proposed
expenditures, and a bill or bills covering recommendations
in the budget or new or additional revenues.
SECTION 13. EXPENDITURES. No money shall be withdrawn
from the treasury except in accordance with appropriations
made by law. No obligation for the payment of money shall be
incurred except as authorized by law. Unobligated
appropriations outstanding at the end of the period of time
specified by law shall be void.
SECTION 14. LEGISLATIVE POST-AUDIT. The legislature
shall appoint an auditor to serve at its pleasure. He shall
be a certified public accountant. The auditor shall conduct
post-audits as prescribed by law and shall report to the
legislature and to the governor.
SECTION 15. ALASKA PERMANENT FUND. At least
twenty-five per cent of all mineral lease rentals,
royalties, royalty sale proceeds, federal mineral revenue
sharing payments and bonuses received by the State shall be
placed in a permanent fund, the principal of which shall be
used only for those income-producing investments
specifically designated by law as eligible for permanent
fund investments. All income from the permanent fund shall
be deposited in the general fund unless otherwise provided
by law.
SECTION 16. APPROPRIATION LIMIT. Except for
appropriations for Alaska permanent fund dividends,
appropriations of revenue bond proceeds, appropriations
required to pay the principal and interest on general
obligation bonds, and appropriations of money received from
a nonstate source in trust for a specific purpose, including
revenues of a public enterprise or public corporation of the
State that issues revenue bonds, appropriations from the
treasury made for a fiscal year shall not exceed
$2,500,000,000 by more than the cumulative change, derived
from federal indices as prescribed by law, in population and
inflation since July 1, 1981. Within this limit, at least
one-third shall be reserved for capital projects and loan
appropriations. The legislature may exceed this limit in
bills for appropriations to the Alaska permanent fund and in
bills for appropriations for capital projects, whether of
bond proceeds or otherwise, if each bill is approved by the
governor, or passed by affirmative vote of three-fourths of
the membership of the legislature over a veto or item veto,
or becomes law without signature, and is also approved by
the voters as prescribed by law. Each bill for
appropriations for capital projects in excess of the limit
shall be confined to capital projects of the same type, and
the voters shall, as provided by law, be informed of the
cost of operations and maintenance of the capital projects.
No other appropriation in excess of this limit may be made
except to meet a state of disaster declared by the governor
as prescribed by law. The governor shall cause any
unexpended and unappropriated balance to be invested so as
to yield competitive market rates to the treasury.
SECTION 17. BUDGET RESERVE FUND. (a) There is established as
a separate fund in the State treasury the budget reserve
fund. Except for money deposited into the permanent fund
under Section 15 of this article, all money received by the
State after July 1, 1990, as a result of the termination,
through settlement or otherwise, of an administrative
proceeding or of litigation in a State or federal court
involving mineral lease bonuses, rentals, royalties, royalty
sale proceeds, federal mineral revenue sharing payments or
bonuses, or involving taxes imposed on mineral income,
production, or property, shall be deposited in the budget
reserve fund. Money in the budget reserve fund shall be
invested so as to yield competitive market rates to the
fund. Income of the fund shall be retained in the fund.
Section 7 of this article does not apply to deposits made to
the fund under this subsection. Money may be appropriated
from the fund only as authorized under (b) or (c) of this
section.
- (b) If the amount available for appropriation for a
fiscal year is less than the amount appropriated for the
previous fiscal year, an appropriation may be made from
the budget reserve fund. However, the amount appropriated
from the fund under this subsection may not exceed the
amount necessary, when added to other funds available for
appropriation, to provide for total appropriations equal
to the amount of appropriations made in the previous
calendar year for the previous fiscal year.
(c) An appropriation from the budget reserve fund may be made for any public purpose upon affirmative vote of three-fourths of the members of each house of the legislature.
(d) If an appropriation is made from the budget reserve fund, until the amount appropriated is repaid, the amount of money in the general fund available for appropriation at the end of each succeeding fiscal year shall be deposited in the budget reserve fund. The legislature shall implement this subsection by law.