Bill Text: TX SB14 | 2013 | 83rd Legislature 1st Special Session | Introduced

Texas Senate Bill 14 (Prior Session Legislation)

Introduced

Bill Title: Relating to a periodic review of state and local tax preferences.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2013-05-29 - Filed [SB14 Detail]

Download: Texas-2013-SB14-Introduced.html



	By: Ellis	S.B. No. 14


	A BILL TO BE ENTITLED
	AN ACT
	relating to a periodic review of state and local tax preferences.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Subtitle B, Title 3, Government Code, is amended
	by adding Chapter 320A to read as follows:
	CHAPTER 320A. REVIEW OF STATE AND LOCAL TAX PREFERENCES
	SUBCHAPTER A. GENERAL PROVISIONS
	Sec. 320A.001. DEFINITION. In this chapter, "tax
	preference" means a credit, discount, exclusion, exemption,
	refund, special valuation, special accounting treatment, special
	rate, or special method of reporting authorized by state law that
	relates to a state or local tax imposed in this state.
	SUBCHAPTER B. SCHEDULE FOR PERIODIC REVIEW
	OF STATE AND LOCAL TAX PREFERENCES
	Sec. 320A.051. DEVELOPMENT AND BIENNIAL MODIFICATION OF
	STATE AND LOCAL TAX PREFERENCE REVIEW SCHEDULE. (a) The
	comptroller shall:
	(1) identify each state tax preference and each type
	of local tax preference;
	(2) develop a state and local tax preference review
	schedule under which each identified tax preference is reviewed
	once during each 12-year period; and
	(3) specifically identify on the schedule each of the
	tax preferences the Legislative Budget Board must review for
	purposes of the next report due under Section 320A.151.
	(b) Except as provided in Subsection (c), in developing the
	schedule, the comptroller shall give priority to scheduling for
	review the tax preferences that result in the greatest reduction in
	revenue derived from the taxes to which the tax preferences relate.
	(c) In developing the schedule, the comptroller may:
	(1) schedule for review at the same time all tax
	preferences authorized in the same chapter of the Tax Code; and
	(2) schedule the initial review of a tax preference
	that has an expiration date for any date the comptroller determines
	is appropriate.
	(d) The comptroller shall revise the schedule biennially
	only to:
	(1) add to the schedule a tax preference that was
	enacted after the comptroller developed the most recent schedule;
	(2) delete from the schedule a tax preference that was
	repealed or that expired after the comptroller developed the most
	recent schedule;
	(3) update the review dates of the tax preferences for
	which reviews were conducted after the comptroller developed the
	most recent schedule; and
	(4) update the tax preferences identified under
	Subsection (a)(3).
	Sec. 320A.052. PUBLIC COMMENT. The comptroller shall
	provide a process by which the public may comment on the state and
	local tax preference review schedule under Section 320A.051. The
	comptroller shall consider those comments in developing or revising
	the schedule.
	Sec. 320A.053. SCHEDULE PROVIDED TO LEGISLATIVE BUDGET
	BOARD. Not later than December 1 of each odd-numbered year, the
	comptroller shall provide the state and local tax preference review
	schedule to the Legislative Budget Board.
	SUBCHAPTER C. CONDUCT OF REVIEW OF STATE
	AND LOCAL TAX PREFERENCES
	Sec. 320A.101. PERIODIC REVIEW OF TAX PREFERENCES. The
	Legislative Budget Board shall periodically review each state tax
	preference and each type of local tax preference according to the
	state and local tax preference review schedule provided by the
	comptroller under Section 320A.053. In reviewing a tax preference,
	the board shall:
	(1) summarize the legislative history of the tax
	preference;
	(2) estimate the amount of lost tax revenue
	attributable to the tax preference during the preceding 12-year
	period, including the percent reduction in the tax revenue of the
	related state or local tax, using amounts reported by the
	comptroller under Section 403.014, if available;
	(3) determine the effect of the tax preference on the
	distribution of the tax burden by income class and industry or
	business class during the preceding 12-year period, using amounts
	reported and data analyzed by the comptroller under Sections
	403.014 and 403.0141, if available; and
	(4) evaluate, for a tax preference that reduces by
	more than one percent the total revenue of the related state or
	local tax, the fiscal impact of the tax preference during the
	preceding and following 12-year periods, based on a cost-benefit
	analysis of the general effects of the tax preference on the overall
	state economy, including the effects on:
	(A) job creation by industry sector;
	(B) average wage by industry sector;
	(C) gross state product by industry sector;
	(D) business expenditures by industry sector;
	and
	(E) personal consumption by income class.
	Sec. 320A.102. COOPERATION BY OTHER STATE ENTITIES. (a)
	The Legislative Budget Board may request assistance from the
	comptroller or any other state agency, department, or office if the
	board needs assistance to perform the review required by Section
	320A.101. The comptroller or other agency, department, or office
	shall provide the requested assistance.
	(b) Notwithstanding Section 111.006, Tax Code, or other
	law, the comptroller shall provide to the Legislative Budget Board
	complete electronic access to tax files maintained by the
	comptroller, as the staff of the board determines necessary to
	perform a review required by Section 320A.101. An employee of the
	board that accesses tax files maintained by the comptroller is
	subject to the same duties and requirements regarding
	confidentiality as an employee of the comptroller who accesses the
	files.
	SUBCHAPTER D. REPORT ON TAX PREFERENCES
	Sec. 320A.151. REPORT. Not later than September 1 of each
	even-numbered year, the Legislative Budget Board shall provide to
	the presiding officers of the senate finance committee, or its
	successor, and the house ways and means committee, or its
	successor, a report on the reviews of tax preferences identified
	under Section 320A.051(a)(3). The board shall post the report on
	the board's Internet website as soon as possible after the board
	provides the report to the presiding officers under this section.
	SECTION 2. Notwithstanding Section 320A.053, Government
	Code, as added by this Act, the comptroller of public accounts shall
	submit the initial state and local tax preference review schedule
	required by that section not later than January 15, 2014.
	SECTION 3. The Legislative Budget Board shall submit the
	initial report required by Section 320A.151, Government Code, as
	added by this Act, not later than September 1, 2014.
	SECTION 4. This Act takes effect January 1, 2014.