| 1 | 1 | | 89R3813 SRA-D |
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| 2 | 2 | | By: Raymond H.B. No. 151 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to honesty in state taxation. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subtitle A, Title 2, Tax Code, is amended by |
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| 12 | 12 | | adding Chapter 102 to read as follows: |
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| 13 | 13 | | CHAPTER 102. HONESTY IN STATE TAXATION |
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| 14 | 14 | | Sec. 102.0001. LEGISLATIVE FINDINGS AND INTENT. The |
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| 15 | 15 | | legislature finds that this state has hidden from taxpayers the |
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| 16 | 16 | | enactment and increase of state taxes by describing the taxes by |
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| 17 | 17 | | other names such as "fees," "levies," "surcharges," "assessments," |
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| 18 | 18 | | "fines," and "penalties." It is the intent of the legislature to |
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| 19 | 19 | | establish honesty in state taxation and appropriately identify |
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| 20 | 20 | | state taxes. |
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| 21 | 21 | | Sec. 102.0002. DEFINITIONS. In this chapter: |
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| 22 | 22 | | (1) "Regulatory tax" means a fee, levy, surcharge, |
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| 23 | 23 | | assessment, fine, penalty, or other charge of any kind imposed by |
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| 24 | 24 | | this state for a primary purpose other than to raise revenue for |
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| 25 | 25 | | general purposes, including: |
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| 26 | 26 | | (A) a charge imposed for a specific benefit |
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| 27 | 27 | | conferred or privilege granted directly to the taxpayer that is not |
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| 28 | 28 | | provided to a person who did not pay the charge and that does not |
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| 29 | 29 | | exceed the reasonable cost to this state of conferring the benefit |
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| 30 | 30 | | or granting the privilege; |
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| 31 | 31 | | (B) a charge imposed for a specific state service |
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| 32 | 32 | | or product provided directly to the taxpayer that is not provided to |
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| 33 | 33 | | a person who did not pay the charge and that does not exceed the |
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| 34 | 34 | | reasonable cost to this state of providing the service or product; |
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| 35 | 35 | | (C) a charge imposed for the reasonable |
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| 36 | 36 | | regulatory cost to this state related to the issuance of a license |
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| 37 | 37 | | or permit, the performance of an investigation, inspection, or |
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| 38 | 38 | | audit, or the enforcement of a state law or order; |
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| 39 | 39 | | (D) a charge imposed for the purchase, rental, |
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| 40 | 40 | | lease, or other use of state property; and |
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| 41 | 41 | | (E) a fine, penalty, or other monetary charge |
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| 42 | 42 | | imposed by this state for or in connection with a violation of a |
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| 43 | 43 | | state law or order. |
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| 44 | 44 | | (2) "State agency" means: |
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| 45 | 45 | | (A) a board, commission, department, or other |
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| 46 | 46 | | agency in the executive branch of state government that is created |
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| 47 | 47 | | by the constitution or a statute of this state, including an |
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| 48 | 48 | | institution of higher education as defined by Section 61.003, |
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| 49 | 49 | | Education Code, other than a public junior college, as defined by |
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| 50 | 50 | | that section; |
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| 51 | 51 | | (B) the legislature or a legislative agency; or |
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| 52 | 52 | | (C) the supreme court, the court of criminal |
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| 53 | 53 | | appeals, a court of appeals, or a state judicial agency. |
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| 54 | 54 | | Sec. 102.0003. USE OF HONEST STATE TAXATION TERMINOLOGY |
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| 55 | 55 | | REQUIRED IN LEGISLATION. The legislature and the Texas Legislative |
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| 56 | 56 | | Council are directed to: |
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| 57 | 57 | | (1) not identify a state tax, including a regulatory |
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| 58 | 58 | | tax, as another type of state charge such as a "fee," "levy," |
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| 59 | 59 | | "surcharge," "assessment," "fine," or "penalty" in any new statute |
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| 60 | 60 | | or resolution; and |
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| 61 | 61 | | (2) change a reference to a state charge that is not |
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| 62 | 62 | | correctly identified as a state tax in the course of otherwise |
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| 63 | 63 | | amending the state law containing the reference. |
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| 64 | 64 | | Sec. 102.0004. USE OF HONEST STATE TAXATION TERMINOLOGY |
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| 65 | 65 | | REQUIRED IN STATE RULES, MATERIALS, PUBLICATIONS, AND ELECTRONIC |
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| 66 | 66 | | MEDIA. A state agency: |
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| 67 | 67 | | (1) may not identify a state tax, including a |
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| 68 | 68 | | regulatory tax, as another type of state charge such as a "fee," |
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| 69 | 69 | | "levy," "surcharge," "assessment," "fine," or "penalty" when |
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| 70 | 70 | | proposing or adopting the agency's rules, reference materials, |
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| 71 | 71 | | publications, and electronic media; and |
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| 72 | 72 | | (2) shall change a reference to a state charge that is |
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| 73 | 73 | | not correctly identified as a state tax when amending the agency's |
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| 74 | 74 | | rules, reference materials, publications, and electronic media. |
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| 75 | 75 | | SECTION 2. Chapter 325, Government Code, is amended by |
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| 76 | 76 | | adding Section 325.0128 to read as follows: |
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| 77 | 77 | | Sec. 325.0128. REVIEW OF STATE AGENCIES FOR HONEST STATE |
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| 78 | 78 | | TAXATION TERMINOLOGY. As part of its review of a state agency, the |
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| 79 | 79 | | commission shall consider and make recommendations regarding |
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| 80 | 80 | | statutory revisions necessary to correctly identify state charges |
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| 81 | 81 | | as state taxes in accordance with the legislative intent prescribed |
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| 82 | 82 | | by Chapter 102, Tax Code. |
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| 83 | 83 | | SECTION 3. This Act takes effect September 1, 2025. |
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