Texas Senate Bill SB728

Texas 2019 - 86th Regular

Caption

Relating to the verification of information provided to the comptroller and contained in reports on compliance with agreements under the Texas Economic Development Act.

Impact

The enactment of SB728 is expected to have significant implications for how businesses interact with state regulatory frameworks. With a mandated third-party verification process, organizations benefitting from tax incentives must maintain a higher standard of accountability. This change is anticipated to promote transparency in the administration of economic development incentives, potentially leading to more rigorous enforcement of compliance norms and policies.

Summary

SB728 primarily focuses on improving the verification process of information provided to the Texas Comptroller regarding compliance with agreements established under the Texas Economic Development Act. By amending existing tax code provisions, this bill necessitates that recipients of property tax limitations—specified under the Act—contract with independent certified public accountants. This requirement aims to enhance the integrity of the data submitted to the Comptroller, thereby ensuring compliance with statutory obligations and fostering responsibility in reporting.

Contention

While the bill appears beneficial in terms of accountability, it may face scrutiny over the financial implications for businesses required to hire certified public accountants. Critics may argue that the associated costs could pose a burden, especially for smaller entities that rely on tax incentives for economic viability. Additionally, there may be debates about the sufficiency of the current compliance mechanisms and whether more restrictive measures are necessary to prevent abuse of tax benefits offered under the Texas Economic Development Act.