Relating to a periodic review and expiration dates of state and local tax preferences.
Impact
If enacted, HB 3045 will institute a systematic method for evaluating tax preferences, which could lead to changes in how tax benefits are administered in Texas. The bill requires the Legislative Budget Board to compile reports based on these reviews, including recommendations for continuation, amendment, or repeal of tax preferences. This legislative oversight may significantly alter existing laws relating to tax incentives and could redefine the landscape for taxpayers and businesses reliant on these preferences for economic advantage.
Summary
House Bill 3045 introduces a structured framework for the periodic review of state and local tax preferences in Texas. The bill mandates that each identified tax preference be reviewed at least once every six years, aiming to assess the effectiveness and economic impact of these preferences. In this process, the Texas Comptroller is tasked with creating and revising a review schedule, prioritizing tax preferences that lead to significant loss in governmental revenue. This approach is designed to enhance transparency and ensure that tax benefits serve their intended purpose effectively.
Sentiment
The reception of HB 3045 among legislators appears supportive, particularly from those advocating for fiscal responsibility and efficient use of state resources. However, there are underlying tensions as it relates to broader discussions about the role of tax incentives in stimulating economic growth versus concerns about their potential abuse and fiscal impacts. While supporters believe regular reviews can optimize the effectiveness of tax preferences, some critics worry that the reviews may overlook localized economic conditions and needs.
Contention
A notable point of contention surrounding HB 3045 is the potential impact on specific tax preferences that communities rely on for economic development. While the intention is to review and refine tax benefits, there is concern from local governments and certain interest groups that fewer tax preferences could stifle regional economic initiatives. Additionally, the implementation of a mandatory expiration clause for new tax preferences set at six years may limit legislative flexibility and responsiveness to emerging economic challenges.
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.
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.