Legal Definitions - origination clause

The origination clause is a fundamental constitutional provision, found in both federal and many state constitutions, that dictates where legislative proposals related to taxation and revenue generation must begin their journey through the legislative process.

Specifically, this clause requires that all bills designed to raise money through taxes, fees, or other revenue-generating measures must first be introduced and passed by the legislative body considered to be more directly representative of the people. The historical rationale behind this clause is rooted in the principle that taxation should originate from the representatives most accountable to the populace.

• At the federal level, Article I, Section 7, Clause 1 of the U.S. Constitution mandates that all bills for raising revenue must originate in the House of Representatives. While the Senate cannot introduce such bills, it does have the power to propose or concur with amendments to them.
• Similarly, many state constitutions include an origination clause, requiring revenue bills to originate in the lower house of their respective state legislatures (e.g., the State Assembly or House of Delegates).

Here are some examples illustrating the application of the origination clause:

• Federal Tax Increase: Imagine the U.S. government identifies a need for significant funding to modernize the national power grid. A proposal is made to implement a new federal carbon tax on industrial emissions to generate the necessary revenue. According to the origination clause in the U.S. Constitution, the bill establishing this new carbon tax must first be introduced and approved by the House of Representatives. A Senator could not directly introduce this bill in the Senate; it would be considered unconstitutional and would not proceed.

• State Budget Shortfall: A particular state faces a budget deficit and its governor proposes increasing the state's sales tax rate to generate additional funds. If that state's constitution contains an origination clause, the legislative bill to raise the sales tax must be introduced and passed by the state's lower legislative chamber (e.g., the State Assembly) before it can be sent to the upper chamber (e.g., the State Senate) for their consideration and vote. If a member of the upper chamber attempted to introduce the bill first, it would violate the state's origination clause.

• Senate Amendment to a Revenue Bill: The House of Representatives passes a bill that proposes a new federal excise tax on luxury goods. When this bill arrives in the Senate, some Senators believe the proposed tax rate is too high and could harm certain industries. They propose an amendment to significantly reduce the tax rate before voting on the bill. This action is permissible under the origination clause because while the Senate cannot *originate* the revenue bill, it is explicitly allowed to "propose or concur with amendments" to such bills that have already passed the House.