Texas House Bill HJR74

Texas 2021 - 87th Regular

Caption

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.

Impact

If passed, this amendment could significantly impact state and local tax laws by introducing a formal process for the evaluation and potential sunset of tax preferences. Stakeholders, including taxpayers and state revenue departments, may experience more consistent oversight regarding tax incentives. This can drive legislative discourse towards more thorough assessments of such tax policies, enhancing transparency and accountability in government spending and fiscal responsibility.

Summary

HJR74 proposes a constitutional amendment that mandates a periodic review of state and local tax preferences, ensuring that certain tax preferences will expire unless they are reauthorized by law. The bill stipulates that tax preferences enacted after September 1, 2022, will automatically expire six years after their introduction unless the legislature provides for an earlier expiration or reauthorization. This framework aims to create a more accountable system for state and local tax policies, ensuring that benefits provided through tax preferences are still relevant and necessary over time.

Contention

While the intent behind HJR74 is to ensure tax preferences remain beneficial and relevant, the proposal may face opposition from entities that rely on these preferences for economic development or competitive advantage. Opponents might argue that periodic reviews could create uncertainty in long-term business planning, affecting industries that depend on stability in tax incentives. Additionally, the administrative burden of reauthorization may be a concern for local governments, which often work within tight budget constraints.