Relating to a periodic review and expiration dates of state and local tax preferences.
Impact
Once enacted, SB140 will significantly impact existing statutes governing tax preferences by introducing automatic expiration clauses and review requirements for tax preferences established after September 1, 2014. This requires all new tax incentives to have a defined lifespan unless a legislative body decides otherwise through further action. The bill emphasizes the importance of assessing the benefits of tax preferences against their costs, particularly how they influence economic development and public funding.
Summary
SB140 introduces regulations regarding the periodic review and expiration dates of state and local tax preferences in Texas. By establishing a framework under which these tax preferences will be reviewed every six years, the bill aims to ensure that any benefits provided to taxpayers through credits, exemptions, or discounts are justified and remain relevant to the state's fiscal objectives. The Comptroller of Public Accounts is tasked with developing a review schedule and allowing public input on this schedule, promoting transparency and accountability in the process.
Sentiment
The discussions around SB140 reflected a general sentiment towards promoting fiscal responsibility and effective governance. Supporters of the bill praised it as a proactive measure that could help fine-tune Texas's approach to taxation, ensuring that the state's revenue is used efficiently. Conversely, some opponents expressed concern over the potential impact of automatic expirations on businesses reliant on these tax advantages, fearing that it could lead to instability in tax policy.
Contention
Notable points of contention included the balance between promoting economic development through tax incentives and the need for accountability concerning their efficacy. Critics were particularly worried about the complexities introduced by needing legislative action for the renewal of tax preferences, which might lead to inconsistent economic signaling to businesses. The challenge remains to effectively communicate the benefits of such revisions while protecting the state's economic interests and promoting equitable taxation.
Enabling for
Proposing a constitutional amendment requiring the periodic review of state and local tax preferences and providing an expiration date for certain tax preferences.
TX HB3045
Identical
Relating to a periodic review and expiration dates of state and local tax preferences.
Proposing a constitutional amendment requiring the periodic review of state and local tax preferences and providing an expiration date for certain tax preferences.
Proposing a constitutional amendment requiring the periodic review of state and local tax preferences and the expiration of certain tax preferences if not reauthorized by law.
Relating to agreements authorizing a limitation on taxable value of certain property to provide for the creation of jobs and the generation of state and local tax revenue; authorizing fees; authorizing penalties.
Relating to the nonsubstantive revision of the health and human services laws governing the Health and Human Services Commission, Medicaid, and other social services.
Relating to the terminology used in statute to refer to intellectual disability and certain references to abolished health and human services agencies.
Relating to the terminology used in statute to refer to intellectual disability and certain references to abolished health and human services agencies.
Relating to the continuation and functions of the Texas Juvenile Justice Department, the functions of the office of independent ombudsman for the Texas Juvenile Justice Department, and the powers and duties of the office of inspector general of the Texas Juvenile Justice Department.
Relating to the abolishment of the Texas Council on Purchasing from People with Disabilities and the transfer of its functions to the Texas Workforce Commission.
Relating to the abolishment of the Texas Council on Purchasing from People with Disabilities and the transfer of its functions to the comptroller of public accounts.
Relating to a Pan American Games trust fund, an Olympic Games trust fund, a Major Events trust fund, a Motor Sports Racing trust fund, and an Events trust fund for sporting and non-sporting events, and to the abolishment of the special event trust fund.
Relating to the transfer of the regulation of property tax professionals from the Texas Department of Licensing and Regulation to the comptroller of public accounts; providing civil and administrative penalties.
Relating to the establishment and duties of an event oversight committee for an event eligible to receive funding through a major events trust fund; limiting payments from the fund to reimbursement for attracting unique events to Texas.