Bill Text: TX SB868 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to a periodic review and expiration dates of state and local tax preferences.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2015-03-04 - Referred to Finance [SB868 Detail]
Download: Texas-2015-SB868-Introduced.html
84R9029 TJB-F | ||
By: Ellis | S.B. No. 868 |
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relating to a periodic review and expiration dates 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 six-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 or authorized 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. 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 six-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 six-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 six-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. RECOMMENDATIONS REGARDING REVIEWED TAX PREFERENCES | ||
Sec. 320A.151. PRELIMINARY 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 preliminary report on the reviews of | ||
tax preferences identified under Section 320A.051(a)(3). The | ||
report must include drafts of any proposed legislation needed to | ||
implement the board's recommendations. | ||
Sec. 320A.152. FINAL REPORT. (a) The senate finance | ||
committee, or its successor, and the house ways and means | ||
committee, or its successor, shall review and may modify the | ||
preliminary report and proposed legislation provided to the | ||
committees under Section 320A.151. | ||
(b) Not later than December 1 of each even-numbered year, | ||
the senate finance committee, or its successor, and the house ways | ||
and means committee, or its successor, shall provide to the | ||
governor, the lieutenant governor, and the speaker of the house of | ||
representatives a final report on the reviews of tax preferences | ||
identified under Section 320A.051(a)(3). The final report must | ||
include: | ||
(1) as to each tax preference examined, a | ||
recommendation to: | ||
(A) continue the tax preference; | ||
(B) amend a provision relating to the tax | ||
preference; or | ||
(C) repeal the tax preference; | ||
(2) a complete explanation of each recommendation; | ||
(3) proposed legislation necessary to implement the | ||
findings of the final report; and | ||
(4) a description of any deviations from the | ||
preliminary report provided under Section 320A.151 that are made by | ||
the final report, and a description of the reasons for each | ||
deviation. | ||
Sec. 320A.153. PUBLIC HEARING ON FINAL REPORT. The senate | ||
finance committee, or its successor, and the house ways and means | ||
committee, or its successor, shall hold a joint public hearing on | ||
the final report and proposed legislation provided under Section | ||
320A.152. | ||
SUBCHAPTER E. EXPIRATION OF TAX PREFERENCES | ||
Sec. 320A.201. EXPIRATION; REQUIRED STATEMENT. (a) Each | ||
tax preference enacted by the legislature that becomes law on or | ||
after September 1, 2016: | ||
(1) expires six years after the date the tax | ||
preference takes effect, unless the legislature provides for an | ||
earlier or later expiration date; and | ||
(2) must include the following statement: "This tax | ||
preference expires six years after its effective date unless the | ||
legislature provides for an earlier or later expiration date." | ||
(b) A tax preference to which Subsection (a) applies that | ||
does not include the statement required by Subsection (a)(2) | ||
expires as provided by Subsection (a)(1). | ||
SECTION 2. The comptroller of public accounts shall submit | ||
the initial state and local tax preference review schedule required | ||
by Section 320A.053, Government Code, as added by this Act, not | ||
later than January 15, 2016. | ||
SECTION 3. The Legislative Budget Board shall submit the | ||
initial preliminary report required by Section 320A.151, | ||
Government Code, as added by this Act, not later than September 1, | ||
2016. | ||
SECTION 4. The senate finance committee and the house ways | ||
and means committee shall submit the initial final report required | ||
by Section 320A.152, Government Code, as added by this Act, not | ||
later than December 1, 2016. | ||
SECTION 5. This Act takes effect January 1, 2016, but only | ||
if the constitutional amendment proposed by the 84th Legislature, | ||
Regular Session, 2015, requiring the legislature to provide for a | ||
periodic review of state and local tax preferences and providing | ||
for the expiration of certain tax preferences six years after their | ||
effective dates or at another time prescribed by the legislature is | ||
approved by the voters. If that amendment is not approved by the | ||
voters, this Act has no effect. |