Texas 2025 - 89th Regular

Texas House Bill HB3279 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R11812 SRA-D
2	2	By: Dutton H.B. No. 3279
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to a periodic review and expiration dates of state and
10	10	local tax preferences.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subtitle B, Title 3, Government Code, is amended
13	13	by adding Chapter 320A to read as follows:
14	14	CHAPTER 320A. REVIEW OF STATE AND LOCAL TAX PREFERENCES
15	15	SUBCHAPTER A. GENERAL PROVISIONS
16	16	Sec. 320A.001. DEFINITIONS. In this chapter:
17	17	(1) "Commission" means the select commission on
18	18	periodic tax preference review.
19	19	(2) "Tax preference" means an abatement, credit,
20	20	discount, exclusion, exemption, limitation on appraised value,
21	21	refund, special valuation, special accounting treatment, special
22	22	appraisal method or provision, special rate, or special method of
23	23	reporting authorized by state law or the state constitution that
24	24	relates to a state or local tax imposed in this state.
25	25	SUBCHAPTER B. SELECT COMMISSION ON PERIODIC TAX PREFERENCE REVIEW
26	26	Sec. 320A.051. COMPOSITION OF COMMISSION. The select
27	27	commission on periodic tax preference review is composed of:
28	28	(1) five members of the house of representatives,
29	29	appointed by the speaker of the house of representatives;
30	30	(2) five members of the senate, appointed by the
31	31	lieutenant governor; and
32	32	(3) the comptroller.
33	33	Sec. 320A.052. TERMS. The members of the commission serve
34	34	two-year terms that expire December 31 of each even-numbered year.
35	35	Sec. 320A.053. VACANCY. If a vacancy occurs, the
36	36	individual who originally appointed the vacating member or the
37	37	individual's successor shall appoint an individual to fill the
38	38	vacancy for the remainder of the unexpired term.
39	39	Sec. 320A.054. OFFICERS. (a) The speaker of the house of
40	40	representatives shall select one member of the commission appointed
41	41	under Section 320A.051(1) to serve as chair of the commission.
42	42	(b) The lieutenant governor shall select one member of the
43	43	commission appointed under Section 320A.051(2) to serve as vice
44	44	chair of the commission.
45	45	Sec. 320A.055. MEETINGS. The commission shall meet at the
46	46	call of the chair.
47	47	Sec. 320A.056. STAFF. On the commission's request, the
48	48	Legislative Budget Board, the Texas Legislative Council, the office
49	49	of the governor, the comptroller, the senate, and the house of
50	50	representatives shall provide staff to assist the commission in
51	51	performing the commission's duties.
52	52	Sec. 320A.057. COOPERATION BY OTHER STATE ENTITIES. The
53	53	commission may request the assistance of any state agency,
54	54	department, or office if the commission needs assistance to perform
55	55	the commission's duties. The agency, department, or office shall
56	56	provide the requested assistance.
57	57	Sec. 320A.058. EXPENSES. The operating expenses of the
58	58	commission shall be paid from available funds of the office of the
59	59	governor and the contingent expense funds of the senate and the
60	60	house of representatives, as agreed by those entities. The
61	61	commission members are entitled to reimbursement from those funds
62	62	for expenses incurred by the members in implementing this chapter.
63	63	SUBCHAPTER C. POWERS AND DUTIES OF COMMISSION
64	64	Sec. 320A.101. DEVELOPMENT AND BIENNIAL MODIFICATION OF
65	65	STATE AND LOCAL TAX PREFERENCE REVIEW SCHEDULE. (a) The commission
66	66	shall:
67	67	(1) identify each state tax preference and each type
68	68	of local tax preference;
69	69	(2) develop a state and local tax preference review
70	70	schedule under which each identified tax preference is reviewed
71	71	once during each six-year period; and
72	72	(3) specifically identify on the schedule:
73	73	(A) each of the tax preferences the commission
74	74	must review for purposes of the next report due under Section
75	75	320A.153;
76	76	(B) any tax preference described by Paragraph (A)
77	77	that reduces by less than one-fourth of one percent the total
78	78	revenue derived from the tax to which the tax preference applies and
79	79	that the commission recommends for an abbreviated review; and
80	80	(C) the components of the review specified by
81	81	Section 320A.104 that the commission recommends are unnecessary
82	82	with respect to a tax preference recommended for an abbreviated
83	83	review.
84	84	(b) In developing the schedule, the commission shall
85	85	schedule the tax preferences for review in the order in which the
86	86	tax preferences were enacted or authorized, except that the
87	87	commission may schedule the initial review of a tax preference that
88	88	has an expiration date for any date the commission determines is
89	89	appropriate.
90	90	(c) The commission shall revise the schedule biennially
91	91	only to:
92	92	(1) add to the schedule a tax preference that was
93	93	enacted or authorized after the commission developed the most
94	94	recent schedule;
95	95	(2) delete from the schedule a tax preference that was
96	96	repealed after the commission developed the most recent schedule;
97	97	(3) update the review dates of the tax preferences for
98	98	which reviews were conducted after the commission developed the
99	99	most recent schedule; and
100	100	(4) update the tax preferences identified under
101	101	Subsection (a)(3).
102	102	Sec. 320A.102. PUBLIC COMMENT. The commission shall
103	103	provide a process by which the public may comment on the state and
104	104	local tax preference review schedule under Section 320A.101. The
105	105	commission shall consider those comments in developing or revising
106	106	the schedule.
107	107	Sec. 320A.103. COMPLETION OF SCHEDULE. The state and local
108	108	tax preference review schedule must be completed not later than
109	109	December 1 of each odd-numbered year.
110	110	Sec. 320A.104. PERIODIC REVIEW OF STATE AND LOCAL TAX
111	111	PREFERENCES. The commission shall review each state tax preference
112	112	and each type of local tax preference according to the state and
113	113	local tax preference review schedule developed under Section
114	114	320A.101. In reviewing a tax preference, the commission shall:
115	115	(1) determine the intended purpose of the tax
116	116	preference; and
117	117	(2) evaluate:
118	118	(A) whether the tax preference accomplishes its
119	119	intended purpose;
120	120	(B) whether the intended purpose of the tax
121	121	preference could be accomplished through a more cost-effective
122	122	method; and
123	123	(C) the effect of the tax preference on economic
124	124	development in this state.
125	125	SUBCHAPTER D. RECOMMENDATIONS REGARDING REVIEWED TAX PREFERENCES
126	126	Sec. 320A.151. PRELIMINARY REPORT. Not later than
127	127	September 1 of each even-numbered year, the commission shall file a
128	128	preliminary report on the reviews of tax preferences identified
129	129	under Section 320A.101(a)(3)(A) with the Senate Committee on
130	130	Finance or its successor and the House Committee on Ways and Means
131	131	or its successor. The report must include drafts of any proposed
132	132	legislation needed to implement the commission's recommendations.
133	133	Sec. 320A.152. REVIEW AND COMMENT. The Senate Committee on
134	134	Finance or its successor and the House Committee on Ways and Means
135	135	or its successor may review the preliminary report and proposed
136	136	legislation and submit comments to the commission. Comments must
137	137	be submitted not later than October 15 of each even-numbered year.
138	138	Sec. 320A.153. FINAL REPORT. (a) The commission may modify
139	139	the preliminary report and proposed legislation in response to the
140	140	comments received under Section 320A.152.
141	141	(b) Not later than December 1 of each even-numbered year,
142	142	the commission shall provide to the governor and the presiding
143	143	officers of the Senate Committee on Finance or its successor and the
144	144	House Committee on Ways and Means or its successor a final report on
145	145	the reviews of tax preferences identified under Section
146	146	320A.101(a)(3)(A) and proposed legislation necessary to implement
147	147	the commission's recommendations.
148	148	Sec. 320A.154. PUBLIC HEARING ON FINAL REPORT. The Senate
149	149	Committee on Finance or its successor and the House Committee on
150	150	Ways and Means or its successor shall hold a joint public hearing on
151	151	the final report and proposed legislation provided under Section
152	152	320A.153.
153	153	SUBCHAPTER E. EXPIRATION OF TAX PREFERENCES
154	154	Sec. 320A.201. EXPIRATION; REQUIRED STATEMENT. (a) A tax
155	155	preference included in a final report expires on the second
156	156	anniversary of the date the final report is submitted under Section
157	157	320A.153(b) unless reauthorized by law.
158	158	(b) Each tax preference enacted or reauthorized by an act of
159	159	the legislature that becomes law on or after September 1, 2026, must
160	160	state the expiration date of the preference and provide that the
161	161	preference expires on that date. The expiration date may not be
162	162	later than the sixth anniversary of the effective date of the law
163	163	enacting or most recently reauthorizing the tax preference.
164	164	(c) A tax preference to which Subsection (b) applies that
165	165	does not include the provision required by that subsection expires
166	166	on the sixth anniversary of the effective date of the law enacting
167	167	or most recently reauthorizing the preference.
168	168	SECTION 2. The lieutenant governor and the speaker of the
169	169	house of representatives shall appoint the initial members of the
170	170	select commission on periodic tax preference review not later than
171	171	January 5, 2026. Notwithstanding Section 320A.052, Government
172	172	Code, as added by this Act, the terms of the initial members of the
173	173	commission expire December 31, 2026.
174	174	SECTION 3. Notwithstanding Section 320A.103, Government
175	175	Code, as added by this Act, the select commission on periodic tax
176	176	preference review shall submit:
177	177	(1) the initial state and local tax preference review
178	178	schedule required by that section not later than January 15, 2026;
179	179	(2) the initial preliminary report required by Section
180	180	320A.151, Government Code, as added by this Act, not later than
181	181	September 1, 2026; and
182	182	(3) the initial final report required by Section
183	183	320A.153, Government Code, as added by this Act, not later than
184	184	December 1, 2026.
185	185	SECTION 4. This Act takes effect January 1, 2026, but only
186	186	if the constitutional amendment proposed by the 89th Legislature,
187	187	Regular Session, 2025, requiring the legislature to provide for a
188	188	periodic review of state and local tax preferences and providing
189	189	for the expiration of certain tax preferences after six years, or at
190	190	another time prescribed by the legislature, unless reauthorized by
191	191	law is approved by the voters. If that amendment is not approved by
192	192	the voters, this Act has no effect.