84R3071 CJC-F
By: Davis of Dallas H.B. No. 1003
A BILL TO BE ENTITLED
AN ACT
relating to the periodic evaluation of certain exemptions from
property taxes and state taxes and the application of the sunset
review process to those exemptions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 325, Government Code, is amended by
adding Section 325.025 to read as follows:
Sec. 325.025. EVALUATION OF EXEMPTIONS FROM PROPERTY AND
STATE TAXES. (a) In this section, "exemption" includes:
(1) an exemption that is provided by the manner in
which a term is defined in Subchapter A, Chapter 151, Tax Code; and
(2) an exemption provided by Chapter 162, Tax Code,
from the taxes imposed by that chapter.
(b) The commission shall periodically evaluate each
exemption provided by Chapters 11, 151, 152, 162, 171, 201, and 202,
Tax Code, from the taxes imposed by those chapters.
(c) The commission shall conduct the evaluation required by
Subsection (b) according to a schedule that the commission adopts.
The schedule must provide for the commission to evaluate each tax
exemption at an interval not to exceed six years. The commission
shall provide the schedule to the governor, lieutenant governor,
speaker of the house of representatives, and presiding officers of
the senate finance committee and the house ways and means
committee.
(d) The commission's evaluation of each tax exemption must:
(1) include an evaluation of the exemption's effect
on:
(A) revenue received from taxes imposed by the
chapter providing the exemption;
(B) the entities that receive the exemption;
(C) sales of property, goods, and services made
in this state, where applicable; and
(D) economic investment and growth in this state;
(2) take into account any other factors the commission
considers relevant in evaluating the exemption;
(3) consider whether retaining the exemption is in the
public's best interest; and
(4) make recommendations for retaining or repealing
the exemption, or for amending a provision related to the
exemption.
(e) At each regular legislative session, the commission
shall present to the legislature and the governor a report on the
evaluation and recommendations it makes under Subsection (d). The
report must include drafts of any legislation needed to carry out
the commission's recommendations under that subsection.
(f) The evaluation described by this section does not apply
to a tax exemption that is:
(1) explicitly provided by the constitution of this
state; or
(2) for an item or service that this state is unable to
tax under the United States Constitution or federal law.
SECTION 2. Subchapter C, Chapter 11, Tax Code, is amended by
adding Section 11.49 to read as follows:
Sec. 11.49. SUNSET PROVISION FOR PROPERTY TAX EXEMPTIONS.
(a) The exemptions provided by this chapter from the taxes imposed
by this chapter are subject to periodic evaluation by the Sunset
Advisory Commission under Section 325.025, Government Code,
according to a schedule that the commission adopts under that
section.
(b) A tax exemption provided by this chapter that is the
subject of a Sunset Advisory Commission evaluation under Section
325.025, Government Code, and a section or part of a section that
provides the exemption are repealed on December 31 of the year in
which the commission presents its evaluation to the legislature
unless the legislature retains the exemption.
(c) This section does not prohibit the legislature from
repealing an exemption from the taxes imposed by this chapter at a
date earlier than the date provided by this section.
(d) The evaluation described by Subsection (a) and the
repeal described by Subsection (b) do not apply to a tax exemption
that is explicitly provided by the constitution of this state.
SECTION 3. Chapter 101, Tax Code, is amended by adding
Section 101.010 to read as follows:
Sec. 101.010. SUNSET PROVISION FOR CERTAIN EXEMPTIONS FROM
STATE TAXES. (a) In this section, "exemption" includes:
(1) an exemption that is provided by the manner in
which a term is defined in Subchapter A, Chapter 151; and
(2) an exemption provided by Chapter 162 from the
taxes imposed by that chapter.
(b) The exemptions provided by Chapters 151, 152, 162, 171,
201, and 202 from the taxes imposed by those chapters are subject to
periodic evaluation by the Sunset Advisory Commission under Section
325.025, Government Code, according to a schedule that the
commission adopts under that section.
(c) A tax exemption that is the subject of a Sunset Advisory
Commission evaluation under Section 325.025, Government Code, and a
section or part of a section that provides the exemption are
repealed on December 31 of the year in which the commission presents
its evaluation to the legislature unless the legislature retains
the exemption.
(d) This section does not prohibit the legislature from
repealing an exemption from the taxes imposed by Chapters 151, 152,
162, 171, 201, and 202 at a date earlier than the date provided by
this section.
(e) The evaluation described by Subsection (b) and the
repeal described by Subsection (c) do not apply to a tax exemption
for an item or service that this state is unable to tax under the
United States Constitution or federal law.
SECTION 4. The Sunset Advisory Commission shall adopt a
schedule for evaluating exemptions from property taxes and state
taxes as provided by Section 325.025, Government Code, as added by
this Act, on or before January 1, 2016.
SECTION 5. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2015.