By: Davis of Dallas	H.B. No. 4482

	A BILL TO BE ENTITLED
	AN ACT
	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 325.026 to read as follows:
	Sec. 325.026.  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 325.026, 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
	325.026, 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
	325.026, 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 325.026, 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)  Subject to the Texas Constitution and to the extent
	permissible under other law, the comptroller shall deposit an
	amount of money equal to the increase in the amount of revenue
	received by the state attributable to the repeal of a tax exemption
	under Subsection (c) to the credit of an account in the foundation
	school fund. Money in the account may be appropriated only to
	provide pay increases for school district employees subject to the
	minimum salary schedule under Section 21.402, Education Code.
	(e)  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.
	(f)  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 325.026, Government Code, as added by
	this Act, on or before January 1, 2020.
	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, 2019.