Texas House Bill HB1335

Texas 2021 - 87th Regular

Caption

Relating to a periodic review and expiration dates of state and local tax preferences.

Impact

The legislation mandates that all tax preferences will automatically expire after a fixed period unless explicitly reauthorized by the legislature. This measure is intended to foster greater accountability in tax policy by requiring lawmakers to evaluate tax preferences regularly and determine their efficacy. The commission will not only review existing preferences but also have the authority to propose new legislation that reflects its findings, making it a significant body in shaping Texas' fiscal landscape.

Summary

House Bill 1335 establishes a structured framework for the periodic review and potential expiration of state and local tax preferences in Texas. The bill introduces a new chapter under the Government Code that focuses on creating a select commission responsible for reviewing tax preferences, which include various forms of tax abatement, credits, exemptions, and other reductions in tax liability. This commission, comprised of legislative members and the state comptroller, aims to ensure that tax preferences continue to serve their intended purposes effectively and remain aligned with current state economic goals.

Contention

While proponents argue that the bill will enhance transparency and fiscal responsibility, opponents may view this legislation with skepticism, fearing it could lead to decreased support for local entities relying on these tax preferences for economic development. Additionally, there may be concerns regarding the potential overreach of legislative control, particularly in how local governments utilize tax preferences to address community-specific needs. The created commission's structure of appointed members might also raise questions about its independence and the objectivity of its recommendations.