Texas Senate Bill SB80

Texas 2015 - 84th Regular

• Filed: 11/10/14

Caption

Relating to a periodic review of state and local tax preferences.

Impact

The new framework proposed by SB80 is set to enhance transparency regarding the fiscal impact of tax preferences on state and local revenues. By obligating a comprehensive review every twelve years, it provides a mechanism for regular assessment of the economic implications tied to tax expenditures. This could lead to potential realignment of tax policy in Texas, creating more predictable and efficient revenue streams for state operations and local governance.

Summary

SB80 introduces a systematic approach for reviewing state and local tax preferences, which includes elements such as credits, exemptions, refunds, and special rates. The bill aims to establish a schedule within which each identified tax preference will undergo a periodic review every twelve years. The comptroller of public accounts will be responsible for creating and modifying this review schedule, ensuring that tax preferences that cause significant revenue reductions are prioritized for assessment.

Contention

While the bill is primarily aimed at streamlining tax preference efficiency, notably, it has the potential to spark debate among stakeholders regarding the merit of certain tax credits and exemptions. Supporters may hail it as a necessary reform for enhancing accountability and fiscal discipline, while opponents could argue that some established tax preferences are crucial for incentivizing business growth and maintaining economic competitiveness at the local level. Concerns may also arise about possible cuts to tax preferences perceived as beneficial to specific sectors or demographics.