Senator Davis supported a bipartisan proposal (SB 140 by Sen. Ellis) to require the Comptroller to examine tax preferences in Texas law and review them every 12 years to make sure they’re helping Texas small businesses and our economy.
· Sens. Carona and Campbell both signed onto Ellis’s bill.
On Wed, Oct 23, 2013 at 6:21 PM, Selby, Gardner (CMG-Austin) <email@example.com> wrote:
My read of this legislation is below. Davis has said she wants this to happen. Agree?
The comptroller’s latest report on exemptions says all of them account for about $38 billion in uncollected revenue a year.
Senate Bill 140, which died at the committee level, called for regular reviews of statutory “tax preferences,” meaning any credit, discount, exclusion, exemption, refund, special valuation, special accounting treatment, special rate or special method of reporting as authorized in relation to a state or local tax imposed in the state. Under the proposal, the budget board would determine each tax preference’s purpose and evaluate if it accomplishes its purpose and if it is “inefficient, ineffective or unnecessary, or if the intended purpose of the tax preference is a low priority” for the state and the effect of the preference on economic development, the number of high-wage jobs, funding for public services, the distribution of the tax burden by income class and total income by income class in the state. According to the measure, board recommendations would then be considered by Texas House and Senate budget-writing committees, which would recommend any changes to each preference, including its repeal. Finally, the measure called for legislated tax preferences taking effect after August 2014 to automatically expire six years later unless lawmakers deem otherwise.
4 pm Oct. 24, 2013
Sen. Davis supports a process in which the Comptroller and the legislature can review tax preferences to make sure they're continuing to help small businesses and our economy.