Texas House Bill HJR125

Texas 2019 - 86th Regular

Caption

Proposing a constitutional amendment requiring the periodic review of state and local tax preferences and providing an expiration date for certain tax preferences.

Impact

The implementation of HJR125 would significantly alter the legislative landscape regarding tax preferences. By requiring periodic reviews, the amendment seeks to enhance fiscal accountability and transparency within the state's taxation system. Legislators would need to establish guidelines for evaluating these tax preferences, potentially leading to more informed decisions about which ones to retain or eliminate. This structured approach could also improve public understanding of how tax policies are designed and modified over time.

Summary

HJR125 proposes a constitutional amendment aimed at introducing requirements for the periodic review of state and local tax preferences in Texas. The resolution mandates that any tax preferences enacted after September 1, 2020, will have an automatic expiration date of six years unless otherwise specified by the legislature. The intention behind this amendment is to ensure that tax preferences are assessed regularly to determine their efficacy and relevance, preventing outdated provisions from remaining in place indefinitely.

Contention

While proponents argue that HJR125 will foster a more accountable government and better fiscal management, there are concerns regarding the practical implications of such reviews. Critics may worry that the six-year expiration could destabilize long-term business investments and create uncertainty for local governments reliant on certain tax preferences. Additionally, the process for reviewing and renewing tax preferences may become a complex bureaucratic challenge, leading to possible delays in necessary legislative actions.