Texas House Bill HJR60

Texas 2023 - 88th Regular

• Filed: 12/8/22

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 enacted, this bill would significantly impact how tax preferences are managed in Texas. It introduces a systematic approach to reviewing tax benefits, aiming to eliminate or renew those that are no longer justified or beneficial. The amendment would apply to tax preferences implemented on or after September 1, 2024, imposing a six-year expiration unless explicitly reauthorized. This could lead to a more dynamic fiscal landscape, requiring lawmakers to regularly deliberate on the value of existing tax breaks.

Summary

HJR60 proposes a constitutional amendment that mandates the periodic review of state and local tax preferences, with provisions for the expiration of certain tax preferences if they are not reauthorized by law. This amendment aims to enhance government accountability in tax spending and ensure that tax preferences are assessed for their effectiveness and necessity. The proposed changes require state legislation to define what constitutes a 'tax preference' and to establish the methods and frequency of such reviews.

Sentiment

The general sentiment regarding HJR60 appears to be cautious optimism among proponents who argue that it promotes financial accountability and fiscal responsibility. Advocates see it as a necessary measure to prevent misuse of tax incentives that do not yield significant economic benefits. However, there are concerns among some stakeholders about the potential impacts on businesses that rely on these preferences for growth and investment, fearing that the periodic reviews could introduce instability.

Contention

Notable points of contention surrounding HJR60 include concerns about the administrative burden placed on the legislature and the implications for businesses that depend on existing tax preferences. Critics argue that frequent reviews could deter businesses from making long-term investments in Texas, citing fears of unpredictable tax policy changes. Additionally, the amendment's impact on local governments and their ability to tailor tax preferences to their unique economic environments has raised questions about potential overreach and unintended consequences.