| 1 | 1 | | 84R24746 CJC-D |
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| 2 | 2 | | By: Davis of Dallas H.B. No. 1003 |
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| 3 | 3 | | Substitute the following for H.B. No. 1003: |
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| 4 | 4 | | By: Darby C.S.H.B. No. 1003 |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the periodic evaluation of certain exemptions from |
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| 10 | 10 | | property taxes and state taxes. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Subchapter B, Chapter 403, Government Code, is |
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| 13 | 13 | | amended by adding Section 403.0143 to read as follows: |
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| 14 | 14 | | Sec. 403.0143. EVALUATION OF AND REPORT ON EXEMPTIONS FROM |
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| 15 | 15 | | PROPERTY AND STATE TAXES. (a) In this section, "exemption" |
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| 16 | 16 | | includes: |
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| 17 | 17 | | (1) an exemption that is provided by the manner in |
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| 18 | 18 | | which a term is defined in Subchapter A, Chapter 151, Tax Code; and |
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| 19 | 19 | | (2) an exemption provided by Chapter 162, Tax Code, |
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| 20 | 20 | | from the taxes imposed by that chapter. |
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| 21 | 21 | | (b) The comptroller shall periodically evaluate each |
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| 22 | 22 | | exemption provided by Chapters 11, 151, 152, 162, 171, 201, and 202, |
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| 23 | 23 | | Tax Code, from the taxes imposed by those chapters. |
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| 24 | 24 | | (c) The comptroller shall conduct the evaluation required |
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| 25 | 25 | | by Subsection (b) according to a schedule that the comptroller |
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| 26 | 26 | | adopts. The schedule must provide for the comptroller to evaluate |
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| 27 | 27 | | each tax exemption at an interval not to exceed six years. The |
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| 28 | 28 | | comptroller shall provide the schedule to the governor, lieutenant |
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| 29 | 29 | | governor, speaker of the house of representatives, and presiding |
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| 30 | 30 | | officers of the senate finance committee and the house ways and |
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| 31 | 31 | | means committee. |
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| 32 | 32 | | (d) The comptroller's evaluation of each tax exemption |
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| 33 | 33 | | must: |
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| 34 | 34 | | (1) include an evaluation of the exemption's effect |
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| 35 | 35 | | on: |
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| 36 | 36 | | (A) revenue received from taxes imposed by the |
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| 37 | 37 | | chapter providing the exemption; |
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| 38 | 38 | | (B) the entities that receive the exemption; |
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| 39 | 39 | | (C) sales of property, goods, and services made |
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| 40 | 40 | | in this state, where applicable; and |
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| 41 | 41 | | (D) economic investment and growth in this state; |
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| 42 | 42 | | (2) take into account any other factors the |
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| 43 | 43 | | comptroller considers relevant in evaluating the exemption; |
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| 44 | 44 | | (3) consider whether retaining the exemption is in the |
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| 45 | 45 | | public's best interest; and |
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| 46 | 46 | | (4) make recommendations relating to the exemption |
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| 47 | 47 | | based on the evaluation. |
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| 48 | 48 | | (e) At each regular legislative session, the comptroller |
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| 49 | 49 | | shall present to the legislature and the governor a report on the |
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| 50 | 50 | | evaluation and recommendations the comptroller makes under |
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| 51 | 51 | | Subsection (d). The report must include drafts of any legislation |
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| 52 | 52 | | needed to carry out the comptroller's recommendations under that |
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| 53 | 53 | | subsection. |
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| 54 | 54 | | (f) The evaluation described by this section does not apply |
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| 55 | 55 | | to a tax exemption that is: |
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| 56 | 56 | | (1) explicitly provided by the constitution of this |
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| 57 | 57 | | state; or |
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| 58 | 58 | | (2) for an item or service that this state is unable to |
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| 59 | 59 | | tax under the United States Constitution or federal law. |
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| 60 | 60 | | SECTION 2. The comptroller of public accounts shall adopt a |
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| 61 | 61 | | schedule for evaluating exemptions from property taxes and state |
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| 62 | 62 | | taxes as provided by Section 403.0143, Government Code, as added by |
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| 63 | 63 | | this Act, on or before January 1, 2016. |
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| 64 | 64 | | SECTION 3. This Act takes effect immediately if it receives |
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| 65 | 65 | | a vote of two-thirds of all the members elected to each house, as |
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| 66 | 66 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 67 | 67 | | Act does not receive the vote necessary for immediate effect, this |
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| 68 | 68 | | Act takes effect September 1, 2015. |
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