Taxation: tax expenditures: information.
The bill significantly impacts state laws by ensuring that any future tax expenditures or exemptions are accompanied by a clear framework for assessment. This includes the requirement for data collection to measure the effectiveness of the tax expenditures against their stated goals. By imposing these requirements, AB263 seeks to facilitate more informed decision-making by legislators concerning tax policies, ultimately aiming to improve transparency and effectiveness in fiscal matters.
Assembly Bill 263, introduced by Burke, aims to amend the Revenue and Taxation Code relating to taxation by extending the requirements for transparency in tax incentive legislation. Specifically, it mandates that any bill authorizing new tax expenditures or exemptions introduced after January 1, 2020, must outline specific goals, purposes, and objectives, as well as performance indicators. These measures are designed to ensure that lawmakers can effectively evaluate the efficacy of tax expenditures and exemptions, promoting greater accountability in the legislative process.
The overall sentiment surrounding AB263 appears to be supportive, particularly among lawmakers advocating for fiscal responsibility and transparency. Proponents argue that the bill enhances accountability and provides a structured approach to evaluating tax incentives. Conversely, there may be concerns among some stakeholders regarding the administrative burden that these requirements could impose on entities collecting and reporting the data necessary for compliance.
Notably, the bill does not require reimbursement to local agencies for the costs associated with compliance, which could be a point of contention among critics who argue that this could place undue financial pressure on local governments. The lack of reimbursement could lead to debates about ensuring adequate resources for local agencies to fulfill these new mandates without compromising their existing services.