By Shapleigh S.B. No. 859
76R6975 CBH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the comptroller's reports on the effect of certain tax
1-3 provisions and on tax incidence.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 403.014(b), Government Code, is amended
1-6 to read as follows:
1-7 (b) The report must include:
1-8 (1) an analysis of each special provision that reduces
1-9 the amount of tax payable, to include an estimate of the loss of
1-10 revenue for a six-year period including the current fiscal biennium
1-11 and a citation of the statutory or legal authority for the
1-12 provision; and
1-13 (2) for provisions reducing revenue by more than one
1-14 percent of total revenue for a tax covered by this section:
1-15 (A)[,] the effect of each provision on the
1-16 distribution of the tax burden by income class and industry or
1-17 business class and by ethnic group, as appropriate; and
1-18 (B) the effect of each provision on total income
1-19 by income class and by ethnic group, as appropriate.
1-20 SECTION 2. Section 403.0141(c), Government Code, is amended
1-21 to read as follows:
1-22 (c) To the extent data is available, the incidence impact
1-23 analysis under Subsections (a) and (b):
1-24 (1) shall evaluate the tax burden:
2-1 (A) on the overall income distribution, using a
2-2 systemwide incidence measure or other appropriate measures of
2-3 equality and inequality; [and]
2-4 (B) on income classes, including, at a minimum,
2-5 quintiles of the income distribution, on renters and homeowners, on
2-6 industry or business classes, as appropriate, and on various types
2-7 of business organizations; and
2-8 (C) on ethnic groups;
2-9 (2) may evaluate the tax burden:
2-10 (A) by other appropriate taxpayer
2-11 characteristics, such as whether the taxpayer is a farmer, rancher,
2-12 retired elderly, or resident or nonresident of the state; and
2-13 (B) by distribution of impact on consumers,
2-14 labor, capital, and out-of-state persons and entities; [and]
2-15 (3) shall evaluate the effect of each tax on total
2-16 income by income group and by ethnic group; and
2-17 (4) shall:
2-18 (A) use the broadest measure of economic income
2-19 for which reliable data is available; and
2-20 (B) include a statement of the incidence
2-21 assumptions that were used in making the analysis.
2-22 SECTION 3. This Act takes effect September 1, 1999.
2-23 SECTION 4. The importance of this legislation and the
2-24 crowded condition of the calendars in both houses create an
2-25 emergency and an imperative public necessity that the
2-26 constitutional rule requiring bills to be read on three several
2-27 days in each house be suspended, and this rule is hereby suspended.