Bill Text: TX HB4482 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to the periodic evaluation of certain exemptions from property taxes and state taxes and the application of the sunset review process to those exemptions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-03-26 - Referred to Ways & Means [HB4482 Detail]
Download: Texas-2019-HB4482-Introduced.html
| By: Davis of Dallas | H.B. No. 4482 | |
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| relating to the periodic evaluation of certain exemptions from | ||
| property taxes and state taxes and the application of the sunset | ||
| review process to those exemptions. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Chapter 325, Government Code, is amended by | ||
| adding Section 325.026 to read as follows: | ||
| Sec. 325.026. EVALUATION OF EXEMPTIONS FROM PROPERTY AND | ||
| STATE TAXES. (a) In this section, "exemption" includes: | ||
| (1) an exemption that is provided by the manner in | ||
| which a term is defined in Subchapter A, Chapter 151, Tax Code; and | ||
| (2) an exemption provided by Chapter 162, Tax Code, | ||
| from the taxes imposed by that chapter. | ||
| (b) The commission shall periodically evaluate each | ||
| exemption provided by Chapters 11, 151, 152, 162, 171, 201, and 202, | ||
| Tax Code, from the taxes imposed by those chapters. | ||
| (c) The commission shall conduct the evaluation required by | ||
| Subsection (b) according to a schedule that the commission adopts. | ||
| The schedule must provide for the commission to evaluate each tax | ||
| exemption at an interval not to exceed six years. The commission | ||
| shall provide the schedule to the governor, lieutenant governor, | ||
| speaker of the house of representatives, and presiding officers of | ||
| the senate finance committee and the house ways and means | ||
| committee. | ||
| (d) The commission's evaluation of each tax exemption must: | ||
| (1) include an evaluation of the exemption's effect | ||
| on: | ||
| (A) revenue received from taxes imposed by the | ||
| chapter providing the exemption; | ||
| (B) the entities that receive the exemption; | ||
| (C) sales of property, goods, and services made | ||
| in this state, where applicable; and | ||
| (D) economic investment and growth in this state; | ||
| (2) take into account any other factors the commission | ||
| considers relevant in evaluating the exemption; | ||
| (3) consider whether retaining the exemption is in the | ||
| public's best interest; and | ||
| (4) make recommendations for retaining or repealing | ||
| the exemption, or for amending a provision related to the | ||
| exemption. | ||
| (e) At each regular legislative session, the commission | ||
| shall present to the legislature and the governor a report on the | ||
| evaluation and recommendations it makes under Subsection (d). The | ||
| report must include drafts of any legislation needed to carry out | ||
| the commission's recommendations under that subsection. | ||
| (f) The evaluation described by this section does not apply | ||
| to a tax exemption that is: | ||
| (1) explicitly provided by the constitution of this | ||
| state; or | ||
| (2) for an item or service that this state is unable to | ||
| tax under the United States Constitution or federal law. | ||
| SECTION 2. Subchapter C, Chapter 11, Tax Code, is amended by | ||
| adding Section 11.49 to read as follows: | ||
| Sec. 11.49. SUNSET PROVISION FOR PROPERTY TAX EXEMPTIONS. | ||
| (a) The exemptions provided by this chapter from the taxes imposed | ||
| by this chapter are subject to periodic evaluation by the Sunset | ||
| Advisory Commission under Section 325.026, Government Code, | ||
| according to a schedule that the commission adopts under that | ||
| section. | ||
| (b) A tax exemption provided by this chapter that is the | ||
| subject of a Sunset Advisory Commission evaluation under Section | ||
| 325.026, Government Code, and a section or part of a section that | ||
| provides the exemption are repealed on December 31 of the year in | ||
| which the commission presents its evaluation to the legislature | ||
| unless the legislature retains the exemption. | ||
| (c) This section does not prohibit the legislature from | ||
| repealing an exemption from the taxes imposed by this chapter at a | ||
| date earlier than the date provided by this section. | ||
| (d) The evaluation described by Subsection (a) and the | ||
| repeal described by Subsection (b) do not apply to a tax exemption | ||
| that is explicitly provided by the constitution of this state. | ||
| SECTION 3. Chapter 101, Tax Code, is amended by adding | ||
| Section 101.010 to read as follows: | ||
| Sec. 101.010. SUNSET PROVISION FOR CERTAIN EXEMPTIONS FROM | ||
| STATE TAXES. (a) In this section, "exemption" includes: | ||
| (1) an exemption that is provided by the manner in | ||
| which a term is defined in Subchapter A, Chapter 151; and | ||
| (2) an exemption provided by Chapter 162 from the | ||
| taxes imposed by that chapter. | ||
| (b) The exemptions provided by Chapters 151, 152, 162, 171, | ||
| 201, and 202 from the taxes imposed by those chapters are subject to | ||
| periodic evaluation by the Sunset Advisory Commission under Section | ||
| 325.026, Government Code, according to a schedule that the | ||
| commission adopts under that section. | ||
| (c) A tax exemption that is the subject of a Sunset Advisory | ||
| Commission evaluation under Section 325.026, Government Code, and a | ||
| section or part of a section that provides the exemption are | ||
| repealed on December 31 of the year in which the commission presents | ||
| its evaluation to the legislature unless the legislature retains | ||
| the exemption. | ||
| (d) Subject to the Texas Constitution and to the extent | ||
| permissible under other law, the comptroller shall deposit an | ||
| amount of money equal to the increase in the amount of revenue | ||
| received by the state attributable to the repeal of a tax exemption | ||
| under Subsection (c) to the credit of an account in the foundation | ||
| school fund. Money in the account may be appropriated only to | ||
| provide pay increases for school district employees subject to the | ||
| minimum salary schedule under Section 21.402, Education Code. | ||
| (e) This section does not prohibit the legislature from | ||
| repealing an exemption from the taxes imposed by Chapters 151, 152, | ||
| 162, 171, 201, and 202 at a date earlier than the date provided by | ||
| this section. | ||
| (f) The evaluation described by Subsection (b) and the | ||
| repeal described by Subsection (c) do not apply to a tax exemption | ||
| for an item or service that this state is unable to tax under the | ||
| United States Constitution or federal law. | ||
| SECTION 4. The Sunset Advisory Commission shall adopt a | ||
| schedule for evaluating exemptions from property taxes and state | ||
| taxes as provided by Section 325.026, Government Code, as added by | ||
| this Act, on or before January 1, 2020. | ||
| SECTION 5. This Act takes effect immediately if it receives | ||
| a vote of two-thirds of all the members elected to each house, as | ||
| provided by Section 39, Article III, Texas Constitution. If this | ||
| Act does not receive the vote necessary for immediate effect, this | ||
| Act takes effect September 1, 2019. | ||
