SRC-HRD C.S.S.B. 1778 75(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 1778
By: Shapleigh
Finance
4-8-97
Committee Report (Substituted)


DIGEST 

Currently, the comptroller is not required to report to the legislature
and governor prior to the legislative session regarding the overall
incidence of school district property tax and other state tax generating
more than 2.5 percent of state tax revenue, nor is the Legislative Budget
Board, during session, required to prepare an incidence impact analysis of
a bill or resolution that would affect taxes by more than $20,000,000.
This bill would require the comptroller, prior to session, and the
Legislative Budget Board, during session at the request of a committee
chair, to identify the impact of the current tax system and proposed
changes through "tax incidence analysis," which illustrates how current
and proposed taxes affect different segments of the Texas population. 

PURPOSE

As proposed, C.S.S.B. 1778 requires the comptroller to report to the
legislature and governor before each regular legislative session an
analysis on the overall incidence of school district property tax and any
other state tax generating more than 2.5 percent of state tax revenue.  In
addition, this bill requires the Legislative Budget Board, at the request
of a committee chair, to prepare an incidence impact analysis of a bill or
resolution that would increase, decrease, or redistribute taxes by more
than $20,000,000.  

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 403B, Government Code, by adding Section
403.0141, as follows: 

Sec. 403.0141.  REPORT ON INCIDENCE OF TAX.  Requires the comptroller,
before each regular session of the legislature, to report to the
legislature and the governor on the overall incidence of the school
district property tax and any state tax generating more than 2.5 percent
of state tax revenue in the prior fiscal year.  Requires the analysis to
report on the distribution of the tax burden for taxes included in the
report.  Requires the Legislative Budget Board, with the assistance, as
requested, of the comptroller, to prepare an incidence impact analysis of
the bill or resolution, at the request of the chair of a committee of the
senate or house of representatives to which has been referred a bill or
resolution to change the tax system which would increase, decrease, or
redistribute tax by more than $20,000,000. Requires the analysis to report
on the incidence impact analysis under Subsections (a) and (b).  Set forth
additional requirements regarding the analysis. 

SECTION 2. Effective date: September 1, 1997.

SECTION 3. Emergency clause.

SUMMARY OF COMMITTEE CHANGES

SECTION 1.

Amends Chapter 403B, Government Code, to require the comptroller to report
on the overall  incidence of the school district property tax and any
state tax generating more than 2.5 percent of state tax revenue in the
prior fiscal year, rather than on the overall incidence of each state tax,
including but not limited to, any sales tax, excise tax, property tax,
franchise tax, and business activity or value added tax.  Requires the
analysis to report on the distribution of the tax burden for taxes
included in the report.  Requires the incidence impact analysis under
Subsections (a) and (b) to evaluate the tax burden on income classes,
including at a minimum quintiles, rather than deciles, of the income
distribution, on renters and homeowners, and on industry or business
classes, as appropriate, as well as on various types of business
organizations.    Removes a proposed requirement regarding the Suits
index.  Authorizes the incidence impact analysis to evaluate certain data,
rather than requiring it to do so.