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.
The bill stipulates that any tax preferences effective after September 1, 2016, or those reauthorized after this date, would automatically expire six years later unless reauthorized by law. This timeframe aims to compel lawmakers to regularly scrutinize existing tax preferences, which could directly influence state revenue and budgeting. By necessitating these reviews, the bill supports a dynamic approach to taxation and incentives, potentially enabling Texas to adjust its fiscal policies in response to changing economic circumstances.
HJR107 proposes a significant constitutional amendment aimed at enhancing the oversight of state and local tax preferences. Specifically, the amendment mandates that the legislature implement periodic reviews of these tax preferences to ensure transparency and accountability. The review process would be designed to determine the continued relevance and effectiveness of various tax exemptions and incentives, which could lead to a more structured fiscal policy in Texas. This proposed mechanism aims to eliminate tax preferences that are no longer justified, fostering a more equitable tax structure.
While proponents of HJR107 argue that it promotes responsible fiscal management and increases government accountability, opponents may raise concerns regarding the implications of such a review system. Critics might argue that a predetermined expiration could discourage investments or economic development efforts that rely on tax benefits, as businesses may prefer more stability in the tax code. Furthermore, there may be anxiety about the legislative process that reauthorizes tax preferences, which can be influenced by political pressures and may not always reflect the best interests of taxpayers.
The constitutional amendment also includes a temporary provision effective January 1, 2016, which establishes the groundwork for the periodic reviews outlined in the bill. The measure is set to be put to a public vote during the election on November 3, 2015, allowing citizens to directly engage with this proposed change to the state's constitution. As the discussions around HJR107 develop, it will be critical for stakeholders to consider both the potential benefits and drawbacks of such a fundamental shift in tax policy oversight.