Taxation: other; reporting estimate of amount of use tax forgone; modify to reflect change in use tax act. Amends sec. 6 of 1979 PA 72 (MCL 21.276). TIE BAR WITH: HB 4253'23
If enacted, HB 4137 will enhance transparency in state tax revenue reporting by requiring more detailed estimates related to tax exemptions. This could have significant implications for budget planning and financial accountability, as it may highlight potential gaps in revenue that could affect state funding for various programs and services. The bill is considered essential for better fiscal oversight, ensuring that legislators are fully informed about the financial consequences of tax exemption policies.
House Bill 4137 seeks to amend 1979 PA 72, which governs the reporting of certain tax information during the governor's annual budget presentation to the legislature. The primary focus of this bill is to change how the governor reports the estimated amount of tax foregone due to exemptions granted under the use tax act. Specifically, it mandates the inclusion of revenue lost from items not explicitly exempted, providing a clearer picture of the financial impacts of such exemptions on state revenues.
Discussions surrounding HB 4137 revealed a generally positive sentiment among proponents who view the bill as a necessary reform. Supporters argue that it will lead to improved governance and fiscal responsibility. However, there are concerns from opponents who fear that the increased reporting requirements could overly complicate budget procedures or discourage future tax incentive policies aimed at stimulating economic activity.
Notable points of contention include the potential administrative burden that the new reporting requirements may place on the governor's office and the legislative body. Critics argue that while transparency is vital, the additional reporting might slow down the budgeting process and lead to inefficiencies. The bill's tie-bar with HB 4253 also raises questions about the implications of interrelated legislation, complicating the legislative landscape and potential outcomes.