Parliamentary elections were held in the Federated States of Micronesia on 4 March 1997,[1] alongside a referendum on tax revenues.[2] All candidates for seats in Congress ran as independents.
The referendum proposed modifying Chapter 5, Article IX of the constitution:
National taxes shall be imposed uniformly. Not less than 50% of the revenue shall be paid into the treasury of the state where collected.
to increase the amount of tax revenue returned to the states from 50% to 80%.[2] In order to pass, the change required the approval of at least 75% of voters in three of the four states.[2] Although it was approved by a majority in two states and in terms of the total number of votes, the 75% approval threshold was not passed in any of the four states.[2]
