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