Bill Text: TX HB3328 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to the periodic review and expiration dates of state and local tax preferences.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-03-22 - Referred to Ways & Means [HB3328 Detail]
Download: Texas-2021-HB3328-Introduced.html
87R2330 SRA-F | ||
By: Bernal | H.B. No. 3328 |
|
||
|
||
relating to the 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.0001. 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.0051. DEVELOPMENT AND BIENNIAL MODIFICATION OF | ||
STATE AND LOCAL TAX PREFERENCE REVIEW SCHEDULE. (a) The | ||
comptroller shall: | ||
(1) identify each state tax preference and each 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 preliminary report required by Section | ||
320A.0151. | ||
(b) Except as provided by 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 | ||
schedule: | ||
(1) all tax preferences authorized in the same chapter | ||
of the Tax Code for review at the same time; and | ||
(2) 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.0052. 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.0051. The | ||
comptroller shall consider those comments in developing or revising | ||
the schedule. | ||
Sec. 320A.0053. 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 under Section 320A.0051 to the Legislative Budget Board. | ||
SUBCHAPTER C. REVIEW OF STATE AND LOCAL TAX PREFERENCES | ||
Sec. 320A.0101. PERIODIC REVIEW OF TAX PREFERENCES. The | ||
Legislative Budget Board shall periodically review each state tax | ||
preference and each local tax preference according to the state and | ||
local tax preference review schedule the comptroller provides under | ||
Section 320A.0053. In reviewing a tax preference, the board shall: | ||
(1) determine the intended purpose of the tax | ||
preference; and | ||
(2) evaluate: | ||
(A) whether the tax preference accomplishes its | ||
intended purpose; | ||
(B) whether the tax preference is inefficient, | ||
ineffective, or unnecessary, or the intended purpose of the tax | ||
preference is a low priority for this state; and | ||
(C) the effect of the tax preference on economic | ||
development, the number of high-wage jobs, funding for public | ||
services, the distribution of the tax burden by income class and | ||
industry or business class, and total income by income class in this | ||
state. | ||
Sec. 320A.0102. ADMINISTRATIVE SUPPORT. As requested by | ||
the Legislative Budget Board, a state governmental entity shall | ||
provide administrative support to the board as reasonable and | ||
necessary for the board to perform the review required by Section | ||
320A.0101. | ||
SUBCHAPTER D. RECOMMENDATIONS REGARDING REVIEWED TAX PREFERENCES | ||
Sec. 320A.0151. PRELIMINARY REPORT. Not later than | ||
September 1 of each even-numbered year, the Legislative Budget | ||
Board shall provide to 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 | ||
conducted under Section 320A.0101. The report must include drafts | ||
of any proposed legislation needed to implement the board's | ||
recommendations. | ||
Sec. 320A.0152. FINAL REPORT. 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.0151. Not later than December 1 of | ||
each even-numbered year, the committees 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. | ||
The final report must include: | ||
(1) with respect 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 | ||
under Subdivision (1); | ||
(3) proposed legislation necessary to implement the | ||
findings of the final report; and | ||
(4) a description of any changes to the preliminary | ||
report that were made in the final report, including a description | ||
of the reasons for each change. | ||
Sec. 320A.0153. 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.0152. | ||
SUBCHAPTER E. EXPIRATION OF TAX PREFERENCES | ||
Sec. 320A.0201. EXPIRATION; REQUIRED STATEMENT. (a) A tax | ||
preference that becomes law on or after January 1, 2022, expires | ||
six years after the date the tax preference takes effect, unless the | ||
legislature provides for an earlier or later expiration date. The | ||
law enacting a tax preference described by this subsection 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." A tax preference described by | ||
this subsection that does not include the required statement | ||
expires as provided by this subsection. | ||
(b) A tax preference that became law before January 1, 2022, | ||
and that remains in effect on that date expires January 1, 2028, | ||
unless the legislature provides for an earlier or later expiration | ||
date. | ||
SECTION 2. (a) Notwithstanding Section 320A.0053, | ||
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, | ||
2022. | ||
(b) The Legislative Budget Board shall submit the initial | ||
preliminary report required by Section 320A.0151, Government Code, | ||
as added by this Act, not later than September 1, 2022. | ||
(c) The Senate Finance Committee and the House Ways and | ||
Means Committee shall submit the initial final report required by | ||
Section 320A.0152, Government Code, as added by this Act, not later | ||
than December 1, 2022. | ||
SECTION 3. This Act takes effect January 1, 2022, but only | ||
if the constitutional amendment proposed by the 87th Legislature, | ||
Regular Session, 2021, requiring the legislature to provide for a | ||
periodic review of state and local tax preferences and providing | ||
for the expiration of those tax preferences after six years, 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. |