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A BILL TO BE ENTITLED
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AN ACT
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relating to honesty in state taxation. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle A, Title 2, Tax Code, is amended by |
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adding Chapter 102 to read as follows: |
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CHAPTER 102. HONESTY IN STATE TAXATION |
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Sec. 102.0001. LEGISLATIVE FINDINGS AND INTENT. The |
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legislature finds that this state has hidden from taxpayers the |
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enactment and increase of state taxes by describing the taxes by |
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other names such as "fees," "levies," "surcharges," "assessments," |
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"fines," and "penalties." It is the intent of the legislature to |
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establish honesty in state taxation and appropriately identify |
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state taxes. |
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Sec. 102.0002. DEFINITIONS. In this chapter: |
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(1) "Regulatory tax" means a fee, levy, surcharge, |
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assessment, fine, penalty, or other charge of any kind imposed by |
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this state for a primary purpose other than to raise revenue for |
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general purposes, including: |
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(A) a charge imposed for a specific benefit |
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conferred or privilege granted directly to the taxpayer that is not |
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provided to a person who did not pay the charge and that does not |
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exceed the reasonable cost to this state of conferring the benefit |
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or granting the privilege; |
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(B) a charge imposed for a specific state service |
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or product provided directly to the taxpayer that is not provided to |
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a person who did not pay the charge and that does not exceed the |
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reasonable cost to this state of providing the service or product; |
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(C) a charge imposed for the reasonable |
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regulatory cost to this state related to the issuance of a license |
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or permit, the performance of an investigation, inspection, or |
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audit, or the enforcement of a state law or order; |
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(D) a charge imposed for the purchase, rental, |
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lease, or other use of state property; and |
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(E) a fine, penalty, or other monetary charge |
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imposed by this state for or in connection with a violation of a |
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state law or order. |
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(2) "State agency" means: |
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(A) a board, commission, department, or other |
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agency in the executive branch of state government that is created |
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by the constitution or a statute of this state, including an |
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institution of higher education as defined by Section 61.003, |
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Education Code, other than a public junior college, as defined by |
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that section; |
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(B) the legislature or a legislative agency; or |
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(C) the supreme court, the court of criminal |
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appeals, a court of appeals, or a state judicial agency. |
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Sec. 102.0003. USE OF HONEST STATE TAXATION TERMINOLOGY |
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REQUIRED IN LEGISLATION. The legislature and the Texas Legislative |
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Council are directed to: |
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(1) not identify a state tax, including a regulatory |
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tax, as another type of state charge such as a "fee," "levy," |
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"surcharge," "assessment," "fine," or "penalty" in any new statute |
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or resolution; and |
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(2) change a reference to a state charge that is not |
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correctly identified as a state tax in the course of otherwise |
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amending the state law containing the reference. |
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Sec. 102.0004. USE OF HONEST STATE TAXATION TERMINOLOGY |
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REQUIRED IN STATE RULES, MATERIALS, PUBLICATIONS, AND ELECTRONIC |
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MEDIA. A state agency: |
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(1) may not identify a state tax, including a |
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regulatory tax, as another type of state charge such as a "fee," |
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"levy," "surcharge," "assessment," "fine," or "penalty" when |
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proposing or adopting the agency's rules, reference materials, |
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publications, and electronic media; and |
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(2) shall change a reference to a state charge that is |
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not correctly identified as a state tax when amending the agency's |
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rules, reference materials, publications, and electronic media. |
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SECTION 2. Chapter 325, Government Code, is amended by |
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adding Section 325.0128 to read as follows: |
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Sec. 325.0128. REVIEW OF STATE AGENCIES FOR HONEST STATE |
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TAXATION TERMINOLOGY. As part of its review of a state agency, the |
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commission shall consider and make recommendations regarding |
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statutory revisions necessary to correctly identify state charges |
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as state taxes in accordance with the legislative intent prescribed |
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by Chapter 102, Tax Code. |
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SECTION 3. This Act takes effect September 1, 2025. |