Texas House Bill HB4482

Texas 2019 - 86th Regular

Caption

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.

Impact

If enacted, HB 4482 modifies existing laws, specifically in the Government Code and Tax Code, to mandate evaluations by the Sunset Advisory Commission. Each evaluation will consider various factors including the impact on tax revenues, entities benefiting from exemptions, and overall economic activity within the state. This structured assessment aims to promote a more systematic review of tax exemptions and their relevance in the current economic climate.

Summary

House Bill 4482 aims to implement a periodic evaluation process for certain exemptions from property taxes and state taxes in Texas, applying the sunset review process to these exemptions. This bill seeks to ensure accountability and efficiency in tax exemption policies by requiring evaluations at regular intervals, not exceeding six years. The initiative is designed to foster transparency in how exemptions affect state revenue and the effectiveness of these exemptions in supporting economic investments and growth.

Contention

One point of contention surrounding HB 4482 lies in the potential for the repeal of certain tax exemptions if they fail to demonstrate advantageous results during evaluations. Critics may argue that this creates uncertainty for businesses and entities relying on these exemptions. Supporters of the bill, on the other hand, contend that regular assessments are crucial to ensure that tax exemptions serve the public interest, are justified economically, and respond to current fiscal challenges in the state.