By: Shapleigh, Ellis S.B. No. 1778 97S0703/3 A BILL TO BE ENTITLED AN ACT 1-1 relating to reports on and analyses of tax impacts. 1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-3 SECTION 1. Subchapter B, Chapter 403, Government Code, is 1-4 amended by adding Section 403.0141 to read as follows: 1-5 Sec. 403.0141. REPORT ON INCIDENCE OF TAX. (a) Before each 1-6 regular session of the legislature, the comptroller shall report to 1-7 the legislature and the governor on the overall incidence of each 1-8 state tax, including but not limited to any sales tax, excise tax, 1-9 property tax, franchise tax, and business activity or value added 1-10 tax. The analysis shall report on the distribution of the tax 1-11 burden. 1-12 (b) At the request of the chair of a committee of the senate 1-13 or house of representatives to which has been referred a bill or 1-14 resolution to change the tax system which would increase, decrease, 1-15 or redistribute tax by more than $20,000,000, the Legislative 1-16 Budget Board with the assistance, as requested, of the comptroller 1-17 shall prepare an incidence impact analysis of the bill or 1-18 resolution. The analysis shall report on the incidence effects 1-19 that would result if the bill or resolution were enacted. 1-20 (c) To the extent data is available, the incidence impact 1-21 analysis under Subsections (a) and (b): 1-22 (1) shall evaluate the tax burden: 1-23 (A) on the overall income distribution, using a 2-1 systemwide incidence measure such as the Suits index or other 2-2 appropriate measures of equality and inequality; 2-3 (B) by income class, including at a minimum 2-4 deciles of the income distribution, and by industry or business 2-5 class; and 2-6 (C) by other appropriate taxpayer 2-7 characteristics, such as: 2-8 (i) whether the taxpayer is a renter, 2-9 homeowner, farmer, rancher, retired elderly, or resident or 2-10 nonresident of the state; and 2-11 (ii) the manner of business organization 2-12 of the taxpayer; and 2-13 (D) by distribution of impact on consumers, 2-14 labor, capital, and out-of-state persons and entities; and 2-15 (2) shall: 2-16 (A) use the broadest measure of economic income 2-17 for which reliable data is available; and 2-18 (B) include a statement of the incidence 2-19 assumptions that were used in making the analysis. 2-20 SECTION 2. This Act takes effect September 1, 1997. 2-21 SECTION 3. The importance of this legislation and the 2-22 crowded condition of the calendars in both houses create an 2-23 emergency and an imperative public necessity that the 2-24 constitutional rule requiring bills to be read on three several 2-25 days in each house be suspended, and this rule is hereby suspended.