79S10194 KLA-D

By:  Shapleigh                                                    S.B. No. 30 



A BILL TO BE ENTITLED

AN ACT

relating to an analysis of the effects of certain tax policies.               
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  SPECIAL REPORT ON EFFECTS OF CERTAIN TAX 
POLICIES ON PERSONAL INCOME AND BUSINESSES.  (a)  The comptroller of 
public accounts shall prepare a report that provides a 
comprehensive analysis of the effects of tax policies adopted 
during a special session of the 79th Legislature on the personal 
income of residents of this state and on businesses in this state.  
Not later than October 15, 2006, the comptroller shall submit the 
report to the governor, lieutenant governor, speaker of the house 
of representatives, and each other member of the legislature.
	(b)  The report required under Subsection (a) of this section 
must include at least the following information with respect to 
business taxes enacted or significantly reformed by the 79th 
Legislature:
		(1)  the total amount of the tax revenue collected from 
businesses between the effective date of this Act and the date of 
the report;
		(2)  a profile of the businesses that paid the taxes by:                      
			(A)  the number of employees;                                                
			(B)  the two-digit standard industrial 
classification; and                 
			(C)  for the period described by Subdivision (1) 
of this subsection:       
				(i)  the total amount of wages paid and, 
reported separately, the total amount of taxable wages paid;
				(ii)  the total amount of profits made and, 
reported separately, the total amount of taxable profits made;
				(iii)  the total amount of taxes paid; and                                  
				(iv)  any credits used to reduce tax 
liability;                           
		(3)  the percentage of the taxes that were paid by 
businesses with fewer than 100 employees;
		(4)  an estimate of the number and wages of workers not 
covered by the taxes; and
		(5)  an estimate of the number, two-digit standard 
industrial classification, and profits of, and an estimate of the 
wages paid by, businesses not covered by the taxes.
	(c)  The report required under Subsection (a) of this section 
must also include at least the following:
		(1)  with respect to major legislation enacted by the 
79th Legislature during a special session, a tax incidence 
analysis, categorized by industry sector and family income level, 
of the effects of:
			(A)  any reduction in school district tax rates;                             
			(B)  any changes in business taxation;                                       
			(C)  any changes in property taxation;                                       
			(D)  any increase in the rate of the sales tax on 
the sales tax base as compared to the sales tax base that existed on 
January 1, 2005;
			(E)  any repeal of a sales tax exemption or 
exclusion;                     
			(F)  any increase in the rate of the motor vehicle 
sales and use tax;      
			(G)  any increase in the rate of the boat and boat 
motor sales and use tax;
			(H)  any tax imposed on the sale of discretionary 
food and drink items;    
			(I)  any increase in rate of the cigarette, cigar,  
or tobacco products tax; and
			(J)  any other changes in major state taxes; and                             
		(2)  with respect to residents of this state who 
itemize deductions on their federal income tax returns, an 
analysis, categorized by income level, of:
			(A)  the amount of state sales taxes deducted from 
those persons' federal income taxes; and
			(B)  the difference between the federal income tax 
deductions for property taxes paid that were claimed by those 
persons before property tax rate reductions were enacted during a 
special session of the 79th Legislature and the federal income tax 
deductions for property taxes paid that were claimed by those 
persons after those reductions were enacted.
	(d)  Not later than October 15, 2008, the comptroller of 
public accounts shall:
		(1)  update the information contained in the report 
submitted under this section; and
		(2)  submit the updated report to the persons listed in 
Subsection (a) of this section.
	SECTION 2.  EFFECTIVE DATE.  This Act takes effect 
immediately if it receives a vote of two-thirds of all the members 
elected to each house, as provided by Section 39, Article III, Texas 
Constitution.  If this Act does not receive the vote necessary for 
immediate effect, this Act takes effect on the 91st day after the 
last day of the legislative session.