Texas 2019 - 86th Regular

Texas House Bill HB4482 Compare Versions

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

Old	New	Differences
1	1	By: Davis of Dallas H.B. No. 4482
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the periodic evaluation of certain exemptions from
7	7	property taxes and state taxes and the application of the sunset
8	8	review process to those exemptions.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Chapter 325, Government Code, is amended by
11	11	adding Section 325.026 to read as follows:
12	12	Sec. 325.026. EVALUATION OF EXEMPTIONS FROM PROPERTY AND
13	13	STATE TAXES. (a) In this section, "exemption" includes:
14	14	(1) an exemption that is provided by the manner in
15	15	which a term is defined in Subchapter A, Chapter 151, Tax Code; and
16	16	(2) an exemption provided by Chapter 162, Tax Code,
17	17	from the taxes imposed by that chapter.
18	18	(b) The commission shall periodically evaluate each
19	19	exemption provided by Chapters 11, 151, 152, 162, 171, 201, and 202,
20	20	Tax Code, from the taxes imposed by those chapters.
21	21	(c) The commission shall conduct the evaluation required by
22	22	Subsection (b) according to a schedule that the commission adopts.
23	23	The schedule must provide for the commission to evaluate each tax
24	24	exemption at an interval not to exceed six years. The commission
25	25	shall provide the schedule to the governor, lieutenant governor,
26	26	speaker of the house of representatives, and presiding officers of
27	27	the senate finance committee and the house ways and means
28	28	committee.
29	29	(d) The commission's evaluation of each tax exemption must:
30	30	(1) include an evaluation of the exemption's effect
31	31	on:
32	32	(A) revenue received from taxes imposed by the
33	33	chapter providing the exemption;
34	34	(B) the entities that receive the exemption;
35	35	(C) sales of property, goods, and services made
36	36	in this state, where applicable; and
37	37	(D) economic investment and growth in this state;
38	38	(2) take into account any other factors the commission
39	39	considers relevant in evaluating the exemption;
40	40	(3) consider whether retaining the exemption is in the
41	41	public's best interest; and
42	42	(4) make recommendations for retaining or repealing
43	43	the exemption, or for amending a provision related to the
44	44	exemption.
45	45	(e) At each regular legislative session, the commission
46	46	shall present to the legislature and the governor a report on the
47	47	evaluation and recommendations it makes under Subsection (d). The
48	48	report must include drafts of any legislation needed to carry out
49	49	the commission's recommendations under that subsection.
50	50	(f) The evaluation described by this section does not apply
51	51	to a tax exemption that is:
52	52	(1) explicitly provided by the constitution of this
53	53	state; or
54	54	(2) for an item or service that this state is unable to
55	55	tax under the United States Constitution or federal law.
56	56	SECTION 2. Subchapter C, Chapter 11, Tax Code, is amended by
57	57	adding Section 11.49 to read as follows:
58	58	Sec. 11.49. SUNSET PROVISION FOR PROPERTY TAX EXEMPTIONS.
59	59	(a) The exemptions provided by this chapter from the taxes imposed
60	60	by this chapter are subject to periodic evaluation by the Sunset
61	61	Advisory Commission under Section 325.026, Government Code,
62	62	according to a schedule that the commission adopts under that
63	63	section.
64	64	(b) A tax exemption provided by this chapter that is the
65	65	subject of a Sunset Advisory Commission evaluation under Section
66	66	325.026, Government Code, and a section or part of a section that
67	67	provides the exemption are repealed on December 31 of the year in
68	68	which the commission presents its evaluation to the legislature
69	69	unless the legislature retains the exemption.
70	70	(c) This section does not prohibit the legislature from
71	71	repealing an exemption from the taxes imposed by this chapter at a
72	72	date earlier than the date provided by this section.
73	73	(d) The evaluation described by Subsection (a) and the
74	74	repeal described by Subsection (b) do not apply to a tax exemption
75	75	that is explicitly provided by the constitution of this state.
76	76	SECTION 3. Chapter 101, Tax Code, is amended by adding
77	77	Section 101.010 to read as follows:
78	78	Sec. 101.010. SUNSET PROVISION FOR CERTAIN EXEMPTIONS FROM
79	79	STATE TAXES. (a) In this section, "exemption" includes:
80	80	(1) an exemption that is provided by the manner in
81	81	which a term is defined in Subchapter A, Chapter 151; and
82	82	(2) an exemption provided by Chapter 162 from the
83	83	taxes imposed by that chapter.
84	84	(b) The exemptions provided by Chapters 151, 152, 162, 171,
85	85	201, and 202 from the taxes imposed by those chapters are subject to
86	86	periodic evaluation by the Sunset Advisory Commission under Section
87	87	325.026, Government Code, according to a schedule that the
88	88	commission adopts under that section.
89	89	(c) A tax exemption that is the subject of a Sunset Advisory
90	90	Commission evaluation under Section 325.026, Government Code, and a
91	91	section or part of a section that provides the exemption are
92	92	repealed on December 31 of the year in which the commission presents
93	93	its evaluation to the legislature unless the legislature retains
94	94	the exemption.
95	95	(d) Subject to the Texas Constitution and to the extent
96	96	permissible under other law, the comptroller shall deposit an
97	97	amount of money equal to the increase in the amount of revenue
98	98	received by the state attributable to the repeal of a tax exemption
99	99	under Subsection (c) to the credit of an account in the foundation
100	100	school fund. Money in the account may be appropriated only to
101	101	provide pay increases for school district employees subject to the
102	102	minimum salary schedule under Section 21.402, Education Code.
103	103	(e) This section does not prohibit the legislature from
104	104	repealing an exemption from the taxes imposed by Chapters 151, 152,
105	105	162, 171, 201, and 202 at a date earlier than the date provided by
106	106	this section.
107	107	(f) The evaluation described by Subsection (b) and the
108	108	repeal described by Subsection (c) do not apply to a tax exemption
109	109	for an item or service that this state is unable to tax under the
110	110	United States Constitution or federal law.
111	111	SECTION 4. The Sunset Advisory Commission shall adopt a
112	112	schedule for evaluating exemptions from property taxes and state
113	113	taxes as provided by Section 325.026, Government Code, as added by
114	114	this Act, on or before January 1, 2020.
115	115	SECTION 5. This Act takes effect immediately if it receives
116	116	a vote of two-thirds of all the members elected to each house, as
117	117	provided by Section 39, Article III, Texas Constitution. If this
118	118	Act does not receive the vote necessary for immediate effect, this
119	119	Act takes effect September 1, 2019.