Proposing a constitutional amendment requiring the periodic review of state and local tax preferences and the expiration of certain tax preferences if not reauthorized by law.
If passed, this amendment would significantly alter the landscape of tax legislation in Texas. Specifically, any tax preferences that come into effect after September 1, 2020, will automatically expire unless they are reauthorized by the legislature within a six-year window. The bill is expected to stimulate discussions around the long-term sustainability of tax breaks and to encourage legislative bodies to continuously reassess their benefits to the populace and economy. Promoters of the bill argue that this will lead to more responsible fiscal management at both the state and local levels.
HJR106 proposes a constitutional amendment aimed at implementing periodic reviews of state and local tax preferences. The bill outlines requirements that will obligate the legislature to define what constitutes a 'tax preference' and to set forth the methods, timing, and procedures for these reviews. This measure seeks to ensure transparency and accountability concerning tax expenditures, which are often overlooked in legislative scrutiny. The primary focus is on making certain that tax preferences do not remain in effect indefinitely without justification or approval from the legislature.
While the bill is designed to promote oversight and re-evaluation of tax policies, it has the potential to spark debate among lawmakers and stakeholders. Some may view the checks imposed by HJR106 as a necessary reform to curb fiscal irresponsibility, while critics might argue it could complicate or hinder economic initiatives that depend on stable tax incentives. Moreover, there is concern regarding how frequently the reviews would occur and whether they would add undue bureaucracy or conflict with existing local regulations surrounding tax preferences.