Relating to a periodic review and expiration dates of state and local tax preferences.
Impact
The impact of SB868 on Texas tax law is significant as it establishes both a schedule for review and a formal mechanism for the legislature to phase out tax preferences that are found to be ineffective or unnecessary. Each tax preference will be scrutinized every six years, which could lead to adjustments in how tax breaks are applied in the future. The bill aims to curb the automatic proliferation of tax benefits that could complicate fiscal planning and undermine state revenue systems.
Summary
SB868 introduces a systematic approach to the review and potential expiration of state and local tax preferences in Texas. The bill mandates that the Legislative Budget Board periodically evaluates each tax preference, determining its impact on state revenue and its effectiveness. This evaluation includes reviewing the legislative history, estimating lost revenues over a six-year period, and assessing effects on different income classes and industries. The intention behind this bill is to create a framework that fosters fiscal accountability regarding tax expenditures.
Contention
Notable points of contention surrounding SB868 may arise from different political perspectives on taxation and fiscal policy. Supporters argue that a regular review process will promote transparency and efficiency in fiscal policy, ensuring that tax preferences serve their intended purpose without diminishing essential public revenues. Conversely, critics may express concern that such reviews might threaten existing tax incentives that encourage business investment or support local economic development. As such, balancing reviews with the need to foster a favorable business environment will likely be a point of debate.
Additional_notes
Overall, SB868 aims to create a structured review process that promotes accountability and efficiency in the state's handling of tax preferences. The law's implementation may set precedents for other states regarding tax code management and fiscal responsibility.
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 repeal of or limitations on certain state and local taxes, including school district maintenance and operations ad valorem taxes, the enactment of state and local value added taxes, and related school finance reform; imposing taxes.
Relating to the repeal of or limitations on certain state and local taxes, including school district maintenance and operations ad valorem taxes, the enactment of state and local value added taxes, and related school finance reform; imposing taxes.
Relating to the repeal of or limitations on certain state and local taxes, including school district maintenance and operations ad valorem taxes, the enactment of state and local value added taxes, and related school finance reform; imposing taxes.
Relating to the repeal of or limitations on certain state and local taxes, including school district maintenance and operations ad valorem taxes, the enactment of state and local value added taxes, and related school finance reform; imposing taxes.
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.