Texas House Bill HB1402

Texas 2009 - 81st Regular

Caption

Relating to a periodic review of state and local taxes.

Impact

The bill significantly impacts state tax law by mandating an ongoing examination of the tax landscape, potentially leading to modifications or repeals of outdated or inefficient taxes. The process will evaluate the implications of these taxes on economic development and assess their fairness across different income levels and business sectors. The joint legislative committee is tasked with making recommendations for tax retention, repeal, or amendments based on these evaluations, thus influencing future fiscal policies in Texas.

Summary

House Bill 1402 proposes a structured mechanism for the periodic review of state and local taxes in Texas. The bill establishes a joint legislative tax review committee and a select commission on periodic tax review, both empowered to assess the effectiveness and relevance of existing taxes. It outlines a clear schedule under which each state tax and type of local tax will undergo evaluations over a twelve-year period. This systematic approach intends to ensure that tax policies are responsive to changing economic conditions and demographic trends within the state.

Contention

There may be points of contention surrounding House Bill 1402, particularly with regards to concerns about government overreach into local revenue systems. While the bill aims to enhance efficiency and transparency in tax policy, local governments may view the periodic reviews as a threat to their autonomy in managing tax matters that directly affect their residents. Stakeholders may express differing opinions on which taxes deserve scrutiny and the potential impacts of proposed changes on community resources and services funded by these taxes.