1-1 By: Shapleigh S.B. No. 859
1-2 (In the Senate - Filed March 3, 1999; March 8, 1999, read
1-3 first time and referred to Committee on Finance; April 29, 1999,
1-4 reported adversely, with favorable Committee Substitute by the
1-5 following vote: Yeas 8, Nays 1; April 29, 1999, sent to printer.)
1-6 COMMITTEE SUBSTITUTE FOR S.B. No. 859 By: Barrientos
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to the reports of the comptroller on the effect of certain
1-10 tax provisions and on tax incidence.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Subsection (b), Section 403.014, Government Code,
1-13 is amended to read as follows:
1-14 (b) The report must include:
1-15 (1) an analysis of each special provision that reduces
1-16 the amount of tax payable, to include an estimate of the loss of
1-17 revenue for a six-year period including the current fiscal biennium
1-18 and a citation of the statutory or legal authority for the
1-19 provision; and
1-20 (2) for provisions reducing revenue by more than one
1-21 percent of total revenue for a tax covered by this section:
1-22 (A)[,] the effect of each provision on the
1-23 distribution of the tax burden by income class and industry or
1-24 business class, as appropriate; and
1-25 (B) the effect of each provision on total income
1-26 by income class.
1-27 SECTION 2. Subsection (c), Section 403.0141, Government
1-28 Code, is amended to read as follows:
1-29 (c) To the extent data is available, the incidence impact
1-30 analysis under Subsections (a) and (b):
1-31 (1) shall evaluate the tax burden:
1-32 (A) on the overall income distribution, using a
1-33 systemwide incidence measure or other appropriate measures of
1-34 equality and inequality; and
1-35 (B) on income classes, including, at a minimum,
1-36 quintiles of the income distribution, on renters and homeowners, on
1-37 industry or business classes, as appropriate, and on various types
1-38 of business organizations;
1-39 (2) may evaluate the tax burden:
1-40 (A) by other appropriate taxpayer
1-41 characteristics, such as whether the taxpayer is a farmer, rancher,
1-42 retired elderly, or resident or nonresident of the state; and
1-43 (B) by distribution of impact on consumers,
1-44 labor, capital, and out-of-state persons and entities; [and]
1-45 (3) shall evaluate the effect of each tax on total
1-46 income by income group; and
1-47 (4) shall:
1-48 (A) use the broadest measure of economic income
1-49 for which reliable data is available; and
1-50 (B) include a statement of the incidence
1-51 assumptions that were used in making the analysis.
1-52 SECTION 3. This Act takes effect September 1, 1999.
1-53 SECTION 4. The importance of this legislation and the
1-54 crowded condition of the calendars in both houses create an
1-55 emergency and an imperative public necessity that the
1-56 constitutional rule requiring bills to be read on three several
1-57 days in each house be suspended, and this rule is hereby suspended.
1-58 * * * * *