78R1296 CBH-D

By:  Rodriguez                                                    H.B. No. 763



A BILL TO BE ENTITLED

AN ACT

relating to the comptroller's reports on the effect of certain tax 
provisions and on tax incidence.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 403.014(b), Government Code, is amended 
to read as follows:
	(b)  The report must include:                                                  
		(1)  an analysis of each special provision that reduces 
the amount of tax payable, to include an estimate of the loss of 
revenue for a six-year period including the current fiscal biennium 
and a citation of the statutory or legal authority for the 
provision;  and
		(2)  for provisions reducing revenue by more than one 
percent of total revenue for a tax covered by this section:
			(A)  the effect of each provision on the 
distribution of the tax burden by income class and industry or 
business class and by ethnic group, as appropriate;  and
			(B)  the effect of each provision on total income 
by income class and by ethnic group, as appropriate.
	SECTION 2.  Section 403.0141(c), Government Code, is amended 
to read as follows:
	(c)  To the extent data is available, the incidence impact 
analysis under Subsections (a) and (b):
		(1)  shall evaluate the tax burden:                                           
			(A)  on the overall income distribution, using a 
systemwide incidence measure or other appropriate measures of 
equality and inequality; [and]
			(B)  on income classes, including, at a minimum, 
quintiles of the income distribution, on renters and homeowners, on 
industry or business classes, as appropriate, and on various types 
of business organizations; and
			(C)  on ethnic groups;                                                
		(2)  may evaluate the tax burden:                                             
			(A)  by other appropriate taxpayer 
characteristics, such as whether the taxpayer is a farmer, rancher, 
retired elderly, or resident or nonresident of the state;  and
			(B)  by distribution of impact on consumers, 
labor, capital, and out-of-state persons and entities;
		(3)  shall evaluate the effect of each tax on total 
income by income group and by ethnic group;  and
		(4)  shall:                                                                   
			(A)  use the broadest measure of economic income 
for which reliable data is available;  and
			(B)  include a statement of the incidence 
assumptions that were used in making the analysis.
	SECTION 3.  This Act takes effect September 1, 2003.