84R24746 CJC-D
By: Davis of Dallas H.B. No. 1003
Substitute the following for H.B. No. 1003:
By: Darby C.S.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.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 403, Government Code, is
amended by adding Section 403.0143 to read as follows:
Sec. 403.0143. EVALUATION OF AND REPORT ON 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 comptroller 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 comptroller shall conduct the evaluation required
by Subsection (b) according to a schedule that the comptroller
adopts. The schedule must provide for the comptroller to evaluate
each tax exemption at an interval not to exceed six years. The
comptroller 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 comptroller'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
comptroller considers relevant in evaluating the exemption;
(3) consider whether retaining the exemption is in the
public's best interest; and
(4) make recommendations relating to the exemption
based on the evaluation.
(e) At each regular legislative session, the comptroller
shall present to the legislature and the governor a report on the
evaluation and recommendations the comptroller makes under
Subsection (d). The report must include drafts of any legislation
needed to carry out the comptroller'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. The comptroller of public accounts shall adopt a
schedule for evaluating exemptions from property taxes and state
taxes as provided by Section 403.0143, Government Code, as added by
this Act, on or before January 1, 2016.
SECTION 3. 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.