Texas 2023 - 88th Regular

Texas Senate Bill SB103 Compare Versions

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Old	New	Differences
1	1	88R241 RDS-F
2	2	By: Johnson S.B. No. 103
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a periodic review and expiration dates of state and
8	8	local tax preferences.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle B, Title 3, Government Code, is amended
11	11	by adding Chapter 320A to read as follows:
12	12	CHAPTER 320A. REVIEW OF STATE AND LOCAL TAX PREFERENCES
13	13	SUBCHAPTER A. GENERAL PROVISIONS
14	14	Sec. 320A.0001. DEFINITION. In this chapter, "tax
15	15	preference" means a credit, discount, exclusion, exemption,
16	16	refund, special valuation, special accounting treatment, special
17	17	rate, or special method of reporting authorized by state law that
18	18	relates to a state or local tax imposed in this state.
19	19	SUBCHAPTER B. SCHEDULE FOR PERIODIC REVIEW
20	20	OF STATE AND LOCAL TAX PREFERENCES
21	21	Sec. 320A.0051. DEVELOPMENT AND BIENNIAL MODIFICATION OF
22	22	STATE AND LOCAL TAX PREFERENCE REVIEW SCHEDULE. (a) The
23	23	comptroller shall:
24	24	(1) identify each state tax preference and each type
25	25	of local tax preference;
26	26	(2) develop a state and local tax preference review
27	27	schedule under which each identified tax preference is reviewed
28	28	once during each six-year period; and
29	29	(3) specifically identify on the schedule each of the
30	30	tax preferences the Legislative Budget Board must review for
31	31	purposes of the next report due under Section 320A.0151.
32	32	(b) Except as provided by Subsection (c), in developing the
33	33	schedule, the comptroller shall give priority to scheduling for
34	34	review the tax preferences that result in the greatest reduction in
35	35	revenue derived from the taxes to which the tax preferences relate.
36	36	(c) In developing the schedule, the comptroller may:
37	37	(1) schedule for review at the same time all tax
38	38	preferences authorized in the same chapter of the Tax Code; and
39	39	(2) schedule the initial review of a tax preference
40	40	that has an expiration date for any date the comptroller determines
41	41	is appropriate.
42	42	(d) The comptroller shall revise the schedule biennially
43	43	only to:
44	44	(1) add to the schedule a tax preference that was
45	45	enacted or authorized after the comptroller developed the most
46	46	recent schedule;
47	47	(2) delete from the schedule a tax preference that was
48	48	repealed or that expired after the comptroller developed the most
49	49	recent schedule;
50	50	(3) update the review dates of the tax preferences for
51	51	which reviews were conducted after the comptroller developed the
52	52	most recent schedule; and
53	53	(4) update the tax preferences identified under
54	54	Subsection (a)(3).
55	55	Sec. 320A.0052. PUBLIC COMMENT. The comptroller shall
56	56	provide a process by which the public may comment on the state and
57	57	local tax preference review schedule under Section 320A.0051. The
58	58	comptroller shall consider those comments in developing or revising
59	59	the schedule.
60	60	Sec. 320A.0053. SCHEDULE PROVIDED TO LEGISLATIVE BUDGET
61	61	BOARD. Not later than December 1 of each odd-numbered year, the
62	62	comptroller shall provide the state and local tax preference review
63	63	schedule to the Legislative Budget Board.
64	64	SUBCHAPTER C. CONDUCT OF REVIEW OF STATE
65	65	AND LOCAL TAX PREFERENCES
66	66	Sec. 320A.0101. PERIODIC REVIEW OF TAX PREFERENCES. The
67	67	Legislative Budget Board shall periodically review each state tax
68	68	preference and each type of local tax preference according to the
69	69	state and local tax preference review schedule provided by the
70	70	comptroller under Section 320A.0053. In reviewing a tax
71	71	preference, the board shall:
72	72	(1) determine the intended purpose of the tax
73	73	preference; and
74	74	(2) evaluate:
75	75	(A) whether the tax preference accomplishes its
76	76	intended purpose;
77	77	(B) whether the tax preference is inefficient,
78	78	ineffective, or unnecessary, or the intended purpose of the tax
79	79	preference is a low priority for this state; and
80	80	(C) the effect of the tax preference on economic
81	81	development, the number of high-wage jobs, funding for public
82	82	services, the distribution of the tax burden by income class and
83	83	industry or business class, and total income by income class in this
84	84	state.
85	85	Sec. 320A.0102. COOPERATION BY OTHER STATE ENTITIES. The
86	86	Legislative Budget Board may request assistance from the
87	87	comptroller or any other state agency, department, or office if the
88	88	board needs assistance to perform the review required by Section
89	89	320A.0101. The comptroller or other agency, department, or office
90	90	shall provide the requested assistance.
91	91	SUBCHAPTER D. RECOMMENDATIONS REGARDING REVIEWED TAX PREFERENCES
92	92	Sec. 320A.0151. PRELIMINARY REPORT. Not later than
93	93	September 1 of each even-numbered year, the Legislative Budget
94	94	Board shall provide to the presiding officers of the senate finance
95	95	committee, or its successor, and the house ways and means
96	96	committee, or its successor, a preliminary report on the reviews of
97	97	tax preferences identified under Section 320A.0051(a)(3). The
98	98	report must include drafts of any proposed legislation needed to
99	99	implement the board's recommendations.
100	100	Sec. 320A.0152. FINAL REPORT. (a) The senate finance
101	101	committee, or its successor, and the house ways and means
102	102	committee, or its successor, shall review and may modify the
103	103	preliminary report and proposed legislation provided to the
104	104	committees under Section 320A.0151.
105	105	(b) Not later than December 1 of each even-numbered year,
106	106	the senate finance committee, or its successor, and the house ways
107	107	and means committee, or its successor, shall provide to the
108	108	governor, the lieutenant governor, and the speaker of the house of
109	109	representatives a final report on the reviews of tax preferences
110	110	identified under Section 320A.0051(a)(3). The final report must
111	111	include:
112	112	(1) as to each tax preference examined, a
113	113	recommendation to:
114	114	(A) continue the tax preference;
115	115	(B) amend a provision relating to the tax
116	116	preference; or
117	117	(C) repeal the tax preference;
118	118	(2) a complete explanation of each recommendation;
119	119	(3) proposed legislation necessary to implement the
120	120	findings of the final report; and
121	121	(4) a description of any deviations from the
122	122	preliminary report provided under Section 320A.0151 that are made
123	123	by the final report, and a description of the reasons for each
124	124	deviation.
125	125	Sec. 320A.0153. PUBLIC HEARING ON FINAL REPORT. The senate
126	126	finance committee, or its successor, and the house ways and means
127	127	committee, or its successor, shall hold a joint public hearing on
128	128	the final report and proposed legislation provided under Section
129	129	320A.0152.
130	130	SUBCHAPTER E. EXPIRATION OF TAX PREFERENCES
131	131	Sec. 320A.0201. EXPIRATION; REQUIRED STATEMENT. (a) Each
132	132	tax preference enacted by the legislature that becomes law on or
133	133	after September 1, 2024:
134	134	(1) expires six years after the date the tax
135	135	preference takes effect, unless the legislature provides for an
136	136	earlier or later expiration date; and
137	137	(2) must include the following statement: "This tax
138	138	preference expires six years after its effective date unless the
139	139	legislature provides for an earlier or later expiration date."
140	140	(b) A tax preference to which Subsection (a) applies that
141	141	does not include the statement required by Subsection (a)(2)
142	142	expires as provided by Subsection (a)(1).
143	143	SECTION 2. The comptroller of public accounts shall submit
144	144	the initial state and local tax preference review schedule required
145	145	by Section 320A.0053, Government Code, as added by this Act, not
146	146	later than January 15, 2024.
147	147	SECTION 3. The Legislative Budget Board shall submit the
148	148	initial preliminary report required by Section 320A.0151,
149	149	Government Code, as added by this Act, not later than September 1,
150	150	2024.
151	151	SECTION 4. The senate finance committee and the house ways
152	152	and means committee shall submit the initial final report required
153	153	by Section 320A.0152, Government Code, as added by this Act, not
154	154	later than December 1, 2024.
155	155	SECTION 5. This Act takes effect January 1, 2024, but only
156	156	if the constitutional amendment proposed by the 88th Legislature,
157	157	Regular Session, 2023, requiring the legislature to provide for a
158	158	periodic review of state and local tax preferences and providing
159	159	for the expiration of certain tax preferences six years after their
160	160	effective dates or at another time prescribed by the legislature is
161	161	approved by the voters. If that amendment is not approved by the
162	162	voters, this Act has no effect.