Texas Senate Bill SB106

Texas 2013 - 83rd Regular

• Filed: 11/12/12

Caption

Relating to a requirement that the Sunset Advisory Commission conduct a study and make recommendations regarding certain tax preferences that relate to ad valorem taxes and that are required or authorized by the state.

Impact

The findings from the study will provide critical insights into the existing tax preferences, which are vital in making informed decisions regarding public policy and taxation. This ensures that taxpayers' money is utilized effectively and aligns with the economic goals of the state. By evaluating the financial implications of these tax preferences, the commission aims to recommend whether to continue, amend, or repeal them based on their effectiveness and societal benefits.

Summary

Senate Bill 106 mandates the Sunset Advisory Commission to conduct a thorough study of ad valorem tax preferences that are either required or authorized by Texas state law. Specifically, it calls for the evaluation of various tax incentives including abatements, exemptions, credits, and other preferences. The intent of the bill is to assess the effectiveness of these preferences in fulfilling their intended purposes, their impact on local and state revenues, and their influence on economic development and job creation in Texas.

Sentiment

The overall sentiment surrounding SB106 appears to be cautiously optimistic. While some legislators support this proactive approach towards tax preference evaluation as a move toward fiscal responsibility and accountability, others express concerns about the potential challenges in implementing recommendations, especially if they involve significant changes to existing tax laws. Advocates argue that a detailed review could lead to better resource allocation and economic growth, while critics may worry about the possible ramifications for local governments and specific industries reliant on these tax incentives.

Contention

Notable points of contention include the potential negative impact on local revenues if certain tax preferences are repealed or amended. Local governments often rely on these tax exemptions to attract businesses and foster economic growth. Therefore, the discussions surrounding SB106 may lead to debates on balancing state-level oversight with local autonomy, ensuring community needs are adequately addressed while pursuing broader economic objectives.