Tax Expenditure Review Commission requirements modified, and legislative requirements for new or renewed tax expenditures repealed.
Impact
The changes proposed in HF5190 are set to amend existing statutes to streamline the oversight of tax expenditures. One of the notable amendments is the repeal of certain legislative requirements for new or renewed tax expenditures, which could reduce bureaucratic hurdles for implementing tax policies. By enacting these changes, the Minnesota legislature aims to ensure that taxpayers receive better accountability regarding their contributions, while simultaneously evaluating the overall effectiveness of tax expenditure programs in meeting their intended goals.
Summary
House File 5190 introduces modifications to the regulations governing the Tax Expenditure Review Commission in Minnesota. This bill aims to enhance the effectiveness and efficiency of tax expenditures by requiring a systematic review process. Specifically, the bill outlines the commission's duties to review tax expenditures, identify their purposes, and assess their financial impacts on state revenue. It mandates that the commission completes an initial review of all tax expenditures within three years of establishment, followed by regular reviews every decade. Public hearings are also necessitated for each review before inclusion in the commission's reports.
Contention
Debate surrounding HF5190 may center on the implications of repealing legislative requirements for tax expenditures, which some stakeholders might argue undermines necessary legislative oversight. Concerns arise about whether this may lead to less transparency and inefficiency in evaluating tax benefits in the long run. Additionally, there may be differing opinions regarding the frequency and scope of the reviews mandated for the tax expenditures, as various groups will have vested interests in different fiscal policies affecting state revenue.
Small donor political committees and funds regulated, small donor state match program established, candidate expenditures exempted from aggregate expenditure limits, campaign public subsidy program repealed, and money transferred.