Relating to a periodic review and expiration dates of state and local tax preferences.
Impact
The anticipated impact of SB 42 on state laws is significant, as it seeks to instill a framework for accountability regarding tax expenditures. Tax incentives that do not yield the desired outcomes may be set for repeal, leading to more efficient allocation of state resources. Additionally, by enforcing expiration dates on tax preferences, the bill aims to ensure that fiscal policies remain relevant and effective, effectively limiting the prolongation of outdated tax incentives that fail to promote economic development or high-wage job creation.
Summary
Senate Bill 42, also known as the act relating to the periodic review and expiration dates of state and local tax preferences, introduces a systematic process for evaluating tax incentives provided by the state. The bill mandates that the state and local tax preferences are reviewed periodically, specifically within a six-year cycle. This will allow for an assessment of whether these tax preferences meet their intended goals and remain justifiable in terms of their economic impact and prioritization in state policy. The measures would involve the Comptroller of Public Accounts creating and maintaining a schedule for the review of these preferences, considering public input throughout the process.
Sentiment
The sentiment surrounding SB 42 reflects a mix of cautious optimism from supporters and skepticism from opponents. Proponents, including some lawmakers, argue that the bill is a necessary step toward enhancing transparency and accountability in government fiscal policy, particularly with respect to tax expenditures. However, critics have raised concerns regarding how such reviews may affect the ability of local governments to provide targeted economic assistance tailored to their communities, fearing that ending or limiting incentives could stifle local economic initiatives.
Contention
Notable points of contention include discussions about the balance between state oversight and local autonomy in crafting tax preferences. Local governments often have unique needs that may require specific tax incentives; thus, a blanket review process might overlook these nuances. Furthermore, the potential for political influences on the review process poses concerns regarding fairness and efficiency in administering tax preferences, as some programs may be scrapped due to shifting political priorities rather than fiscal necessity.
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 nonsubstantive revision of the health and human services laws governing the Health and Human Services Commission, Medicaid, and other social services.
Relating to the terminology used in statute to refer to intellectual disability and certain references to abolished health and human services agencies.
Relating to the terminology used in statute to refer to intellectual disability and certain references to abolished health and human services agencies.
Relating to the continuation and functions of the Texas Juvenile Justice Department, the functions of the office of independent ombudsman for the Texas Juvenile Justice Department, and the powers and duties of the office of inspector general of the Texas Juvenile Justice Department.
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.