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Policy Basics: State Supermajority Rules to Raise Revenues [1]

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Date: 2024-06

Legislatures in most states (34 states plus the District of Columbia) can approve tax bills with a simple majority vote in each house, the same margin required for practically every other bill. In the other 16 states, some or all tax bills require a supermajority vote of each house.

Most states with supermajority requirements impose them only in limited circumstances, but in seven states, the constitution requires a supermajority vote of each house, plus the governor’s signature, to enact any bill that includes a tax increase. Delaware, Mississippi, and Oregon require a three-fifths vote of each house, while Arizona, California, Nevada, and Louisiana require a two-thirds vote of each house.

Little Difference in Tax Levels Between Supermajority and Non-Supermajority States

States with strict supermajority requirements levy taxes at a nearly identical level as other states, on average. In both groups of states, state and local taxes have remained flat as a share of personal income for three decades.

States with strict supermajority requirements levy taxes at a nearly identical level as other states, on average. In both groups of states, state and local taxes have remained flat as a share of personal income for three decades (see chart).

That’s because states don’t need supermajority requirements to ensure that taxes will remain manageable, that major tax increases will be rare, and that lawmakers will think very carefully before raising taxes.

States usually enact major tax increases only in the aftermath of recessions, when revenues have fallen well short of the cost of maintaining public services — and generally accompany them with deep spending cuts. Moreover, states almost always offset recession-driven tax increases by cutting taxes in good economic times. For example, a majority of states enacted tax changes that raised additional revenue immediately after the Great Recession (2007-2009), and a number of states began cutting taxes after 2010.

Beyond being unnecessary, supermajority rules can weaken a state’s capacity to properly handle its finances by:

Beyond being unnecessary, supermajority rules can weaken a state’s capacity to properly handle its finances, such as by protecting outdated and wasteful tax breaks.

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[1] Url: https://www.cbpp.org/research/policy-basics-state-supermajority-rules-to-raise-revenues

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