Texas 2015 - 84th Regular

Texas Senate Bill SB80 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R639 TJB-F
2	2	By: Ellis S.B. No. 80
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a periodic review of state and local tax preferences.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Subtitle B, Title 3, Government Code, is amended
10	10	by adding Chapter 320A to read as follows:
11	11	CHAPTER 320A. REVIEW OF STATE AND LOCAL TAX PREFERENCES
12	12	SUBCHAPTER A. GENERAL PROVISIONS
13	13	Sec. 320A.001. DEFINITION. In this chapter, "tax
14	14	preference" means a credit, discount, exclusion, exemption,
15	15	refund, special valuation, special accounting treatment, special
16	16	rate, or special method of reporting authorized by state law that
17	17	relates to a state or local tax imposed in this state.
18	18	SUBCHAPTER B. SCHEDULE FOR PERIODIC REVIEW
19	19	OF STATE AND LOCAL TAX PREFERENCES
20	20	Sec. 320A.051. DEVELOPMENT AND BIENNIAL MODIFICATION OF
21	21	STATE AND LOCAL TAX PREFERENCE REVIEW SCHEDULE. (a) The
22	22	comptroller shall:
23	23	(1) identify each state tax preference and each type
24	24	of local tax preference;
25	25	(2) develop a state and local tax preference review
26	26	schedule under which each identified tax preference is reviewed
27	27	once during each 12-year period; and
28	28	(3) specifically identify on the schedule each of the
29	29	tax preferences the Legislative Budget Board must review for
30	30	purposes of the next report due under Section 320A.151.
31	31	(b) Except as provided in Subsection (c), in developing the
32	32	schedule, the comptroller shall give priority to scheduling for
33	33	review the tax preferences that result in the greatest reduction in
34	34	revenue derived from the taxes to which the tax preferences relate.
35	35	(c) In developing the schedule, the comptroller may:
36	36	(1) schedule for review at the same time all tax
37	37	preferences authorized in the same chapter of the Tax Code; and
38	38	(2) schedule the initial review of a tax preference
39	39	that has an expiration date for any date the comptroller determines
40	40	is appropriate.
41	41	(d) The comptroller shall revise the schedule biennially
42	42	only to:
43	43	(1) add to the schedule a tax preference that was
44	44	enacted after the comptroller developed the most recent schedule;
45	45	(2) delete from the schedule a tax preference that was
46	46	repealed or that expired after the comptroller developed the most
47	47	recent schedule;
48	48	(3) update the review dates of the tax preferences for
49	49	which reviews were conducted after the comptroller developed the
50	50	most recent schedule; and
51	51	(4) update the tax preferences identified under
52	52	Subsection (a)(3).
53	53	Sec. 320A.052. PUBLIC COMMENT. The comptroller shall
54	54	provide a process by which the public may comment on the state and
55	55	local tax preference review schedule under Section 320A.051. The
56	56	comptroller shall consider those comments in developing or revising
57	57	the schedule.
58	58	Sec. 320A.053. SCHEDULE PROVIDED TO LEGISLATIVE BUDGET
59	59	BOARD. Not later than December 1 of each odd-numbered year, the
60	60	comptroller shall provide the state and local tax preference review
61	61	schedule to the Legislative Budget Board.
62	62	SUBCHAPTER C. REVIEW OF STATE
63	63	AND LOCAL TAX PREFERENCES
64	64	Sec. 320A.101. PERIODIC REVIEW OF TAX PREFERENCES. The
65	65	Legislative Budget Board shall periodically review each state tax
66	66	preference and each type of local tax preference according to the
67	67	state and local tax preference review schedule provided by the
68	68	comptroller under Section 320A.053. In reviewing a tax preference,
69	69	the board shall:
70	70	(1) summarize the legislative history of the tax
71	71	preference;
72	72	(2) estimate the amount of lost tax revenue
73	73	attributable to the tax preference during the preceding 12-year
74	74	period, including the percent reduction in the tax revenue of the
75	75	related state or local tax, using amounts reported by the
76	76	comptroller under Section 403.014, if available;
77	77	(3) determine the effect of the tax preference on the
78	78	distribution of the tax burden by income class and industry or
79	79	business class during the preceding 12-year period, using amounts
80	80	reported and data analyzed by the comptroller under Sections
81	81	403.014 and 403.0141, if available; and
82	82	(4) evaluate, for a tax preference that reduces by
83	83	more than one percent the total revenue of the related state or
84	84	local tax, the fiscal impact of the tax preference during the
85	85	preceding and following 12-year periods, based on a cost-benefit
86	86	analysis of the general effects of the tax preference on the overall
87	87	state economy, including the effects on:
88	88	(A) job creation by industry sector;
89	89	(B) average wage by industry sector;
90	90	(C) gross state product by industry sector;
91	91	(D) business expenditures by industry sector;
92	92	and
93	93	(E) personal consumption by income class.
94	94	Sec. 320A.102. COOPERATION BY OTHER STATE ENTITIES. (a)
95	95	The Legislative Budget Board may request assistance from the
96	96	comptroller or any other state agency, department, or office if the
97	97	board needs assistance to perform the review required by Section
98	98	320A.101. The comptroller or other agency, department, or office
99	99	shall provide the requested assistance.
100	100	(b) Notwithstanding Section 111.006, Tax Code, or other
101	101	law, the comptroller shall provide to the Legislative Budget Board
102	102	complete electronic access to tax files maintained by the
103	103	comptroller, as the staff of the board determines necessary to
104	104	perform a review required by Section 320A.101. An employee of the
105	105	board that accesses tax files maintained by the comptroller is
106	106	subject to the same duties and requirements regarding
107	107	confidentiality as an employee of the comptroller who accesses the
108	108	files.
109	109	SUBCHAPTER D. REPORT ON TAX PREFERENCES
110	110	Sec. 320A.151. REPORT. Not later than September 1 of each
111	111	even-numbered year, the Legislative Budget Board shall provide to
112	112	the presiding officers of the senate finance committee, or its
113	113	successor, and the house ways and means committee, or its
114	114	successor, a report on the reviews of tax preferences identified
115	115	under Section 320A.051(a)(3). The board shall post the report on
116	116	the board's Internet website as soon as possible after the board
117	117	provides the report to the presiding officers under this section.
118	118	SECTION 2. Notwithstanding Section 320A.053, Government
119	119	Code, as added by this Act, the comptroller of public accounts shall
120	120	submit the initial state and local tax preference review schedule
121	121	required by that section not later than January 15, 2016.
122	122	SECTION 3. The Legislative Budget Board shall submit the
123	123	initial report required by Section 320A.151, Government Code, as
124	124	added by this Act, not later than September 1, 2016.
125	125	SECTION 4. This Act takes effect January 1, 2016.