Texas Senate Bill SB868

Texas 2015 - 84th Regular

Caption

Relating to a periodic review and expiration dates of state and local tax preferences.

Impact

The impact of SB868 on Texas tax law is significant as it establishes both a schedule for review and a formal mechanism for the legislature to phase out tax preferences that are found to be ineffective or unnecessary. Each tax preference will be scrutinized every six years, which could lead to adjustments in how tax breaks are applied in the future. The bill aims to curb the automatic proliferation of tax benefits that could complicate fiscal planning and undermine state revenue systems.

Summary

SB868 introduces a systematic approach to the review and potential expiration of state and local tax preferences in Texas. The bill mandates that the Legislative Budget Board periodically evaluates each tax preference, determining its impact on state revenue and its effectiveness. This evaluation includes reviewing the legislative history, estimating lost revenues over a six-year period, and assessing effects on different income classes and industries. The intention behind this bill is to create a framework that fosters fiscal accountability regarding tax expenditures.

Contention

Notable points of contention surrounding SB868 may arise from different political perspectives on taxation and fiscal policy. Supporters argue that a regular review process will promote transparency and efficiency in fiscal policy, ensuring that tax preferences serve their intended purpose without diminishing essential public revenues. Conversely, critics may express concern that such reviews might threaten existing tax incentives that encourage business investment or support local economic development. As such, balancing reviews with the need to foster a favorable business environment will likely be a point of debate.

Additional_notes

Overall, SB868 aims to create a structured review process that promotes accountability and efficiency in the state's handling of tax preferences. The law's implementation may set precedents for other states regarding tax code management and fiscal responsibility.