Bill Text: TX HB1003 | 2015-2016 | 84th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the periodic evaluation of certain exemptions from property taxes and state taxes.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2015-05-12 - Committee report sent to Calendars [HB1003 Detail]
Download: Texas-2015-HB1003-Introduced.html
Bill Title: Relating to the periodic evaluation of certain exemptions from property taxes and state taxes.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2015-05-12 - Committee report sent to Calendars [HB1003 Detail]
Download: Texas-2015-HB1003-Introduced.html
84R3071 CJC-F | ||
By: Davis of Dallas | H.B. No. 1003 |
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relating to the periodic evaluation of certain exemptions from | ||
property taxes and state taxes and the application of the sunset | ||
review process to those exemptions. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 325, Government Code, is amended by | ||
adding Section 325.025 to read as follows: | ||
Sec. 325.025. EVALUATION OF EXEMPTIONS FROM PROPERTY AND | ||
STATE TAXES. (a) In this section, "exemption" includes: | ||
(1) an exemption that is provided by the manner in | ||
which a term is defined in Subchapter A, Chapter 151, Tax Code; and | ||
(2) an exemption provided by Chapter 162, Tax Code, | ||
from the taxes imposed by that chapter. | ||
(b) The commission shall periodically evaluate each | ||
exemption provided by Chapters 11, 151, 152, 162, 171, 201, and 202, | ||
Tax Code, from the taxes imposed by those chapters. | ||
(c) The commission shall conduct the evaluation required by | ||
Subsection (b) according to a schedule that the commission adopts. | ||
The schedule must provide for the commission to evaluate each tax | ||
exemption at an interval not to exceed six years. The commission | ||
shall provide the 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. | ||
(d) The commission's evaluation of each tax exemption must: | ||
(1) include an evaluation of the exemption's effect | ||
on: | ||
(A) revenue received from taxes imposed by the | ||
chapter providing the exemption; | ||
(B) the entities that receive the exemption; | ||
(C) sales of property, goods, and services made | ||
in this state, where applicable; and | ||
(D) economic investment and growth in this state; | ||
(2) take into account any other factors the commission | ||
considers relevant in evaluating the exemption; | ||
(3) consider whether retaining the exemption is in the | ||
public's best interest; and | ||
(4) make recommendations for retaining or repealing | ||
the exemption, or for amending a provision related to the | ||
exemption. | ||
(e) At each regular legislative session, the commission | ||
shall present to the legislature and the governor a report on the | ||
evaluation and recommendations it makes under Subsection (d). The | ||
report must include drafts of any legislation needed to carry out | ||
the commission's recommendations under that subsection. | ||
(f) The evaluation described by this section does not apply | ||
to a tax exemption that is: | ||
(1) explicitly provided by the constitution of this | ||
state; or | ||
(2) for an item or service that this state is unable to | ||
tax under the United States Constitution or federal law. | ||
SECTION 2. Subchapter C, Chapter 11, Tax Code, is amended by | ||
adding Section 11.49 to read as follows: | ||
Sec. 11.49. SUNSET PROVISION FOR PROPERTY TAX EXEMPTIONS. | ||
(a) The exemptions provided by this chapter from the taxes imposed | ||
by this chapter are subject to periodic evaluation by the Sunset | ||
Advisory Commission under Section 325.025, Government Code, | ||
according to a schedule that the commission adopts under that | ||
section. | ||
(b) A tax exemption provided by this chapter that is the | ||
subject of a Sunset Advisory Commission evaluation under Section | ||
325.025, Government Code, and a section or part of a section that | ||
provides the exemption are repealed on December 31 of the year in | ||
which the commission presents its evaluation to the legislature | ||
unless the legislature retains the exemption. | ||
(c) This section does not prohibit the legislature from | ||
repealing an exemption from the taxes imposed by this chapter at a | ||
date earlier than the date provided by this section. | ||
(d) The evaluation described by Subsection (a) and the | ||
repeal described by Subsection (b) do not apply to a tax exemption | ||
that is explicitly provided by the constitution of this state. | ||
SECTION 3. Chapter 101, Tax Code, is amended by adding | ||
Section 101.010 to read as follows: | ||
Sec. 101.010. SUNSET PROVISION FOR CERTAIN EXEMPTIONS FROM | ||
STATE TAXES. (a) In this section, "exemption" includes: | ||
(1) an exemption that is provided by the manner in | ||
which a term is defined in Subchapter A, Chapter 151; and | ||
(2) an exemption provided by Chapter 162 from the | ||
taxes imposed by that chapter. | ||
(b) The exemptions provided by Chapters 151, 152, 162, 171, | ||
201, and 202 from the taxes imposed by those chapters are subject to | ||
periodic evaluation by the Sunset Advisory Commission under Section | ||
325.025, Government Code, according to a schedule that the | ||
commission adopts under that section. | ||
(c) A tax exemption that is the subject of a Sunset Advisory | ||
Commission evaluation under Section 325.025, Government Code, and a | ||
section or part of a section that provides the exemption are | ||
repealed on December 31 of the year in which the commission presents | ||
its evaluation to the legislature unless the legislature retains | ||
the exemption. | ||
(d) This section does not prohibit the legislature from | ||
repealing an exemption from the taxes imposed by Chapters 151, 152, | ||
162, 171, 201, and 202 at a date earlier than the date provided by | ||
this section. | ||
(e) The evaluation described by Subsection (b) and the | ||
repeal described by Subsection (c) do not apply to a tax exemption | ||
for an item or service that this state is unable to tax under the | ||
United States Constitution or federal law. | ||
SECTION 4. The Sunset Advisory Commission shall adopt a | ||
schedule for evaluating exemptions from property taxes and state | ||
taxes as provided by Section 325.025, Government Code, as added by | ||
this Act, on or before January 1, 2016. | ||
SECTION 5. 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 September 1, 2015. |