BILL ANALYSIS |
C.S.H.B. 1003 |
By: Davis, Yvonne |
Ways & Means |
Committee Report (Substituted) |
BACKGROUND AND PURPOSE
Interested parties note that a number of the tax exemptions offered by the state were enacted several decades ago. There is concern that some of these tax exemptions may no longer provide the benefits for which they were created. The parties have recommended the periodic evaluation of the efficacy of certain tax exemptions as a matter of sound fiscal policy. C.S.H.B. 1003 seeks to implement that recommendation.
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CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
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RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
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ANALYSIS
C.S.H.B. 1003 amends the Government Code to require the comptroller of public accounts to periodically evaluate each exemption provided by the applicable Tax Code provision from property taxation; the state sales, excise, and use tax; taxes on the sale, rental, and use of motor vehicles; motor fuel taxes; the franchise tax; the gas production tax; and the oil production tax. The bill requires the comptroller to conduct the periodic evaluation according to a schedule adopted by the comptroller that provides for such evaluation at an interval not to exceed six years. The bill requires the comptroller to provide the evaluation schedule to the governor, lieutenant governor, speaker of the house of representatives, and presiding officers of the senate finance committee and the house ways and means committee. The bill requires the comptroller to adopt the schedule on or before January 1, 2016.
C.S.H.B. 1003 requires the comptroller's evaluation of each tax exemption to include an evaluation of the exemption's effect on specified factors, to take into account any other factors the comptroller considers relevant in evaluating the exemption, to consider whether retaining the exemption is in the public's best interest, and to make recommendations relating to the exemption based on the evaluation. The bill requires the comptroller to present a report on the evaluation and its recommendations to the legislature and the governor at each regular legislative session and requires the report to include drafts of any legislation needed to carry out the comptroller's recommendations. The bill makes the tax exemption evaluation inapplicable to a tax exemption that is explicitly provided by the Texas Constitution or that is for an item or service that the state is unable to tax under the United States Constitution or federal law.
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EFFECTIVE DATE
On passage, or, if the bill does not receive the necessary vote, September 1, 2015. |
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COMPARISON OF ORIGINAL AND SUBSTITUTE
While C.S.H.B. 1003 may differ from the original in minor or nonsubstantive ways, the following comparison is organized and formatted in a manner that indicates the substantial differences between the introduced and committee substitute versions of the bill.
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