2023 Texas Statutes › Government Code › Title 4 - Executive Branch › Subtitle A - Executive Officers › Chapter 403 - Comptroller of Public Accounts › Subchapter B. General Powers and Duties › Section 403.014. Report on Effect of Certain Tax Provisions

Sec. 403.014.  REPORT ON EFFECT OF CERTAIN TAX PROVISIONS.  (a)  Before each regular session of the legislature, the comptroller shall report to the legislature and the governor on the effect, if it is possible to assess, of exemptions, discounts, exclusions, special valuations, special accounting treatments, special rates, and special methods of reporting relating to:
(1)  sales, excise, and use tax under Chapter 151, Tax Code;
(2)  franchise tax under Chapter 171, Tax Code;
(3)  school district property taxes under Title 1, Tax Code;
(4)  motor vehicle tax under Section 152.090; and
(5)  any other tax generating more than five percent of state tax revenue in the prior fiscal year.
(a-1)  In preparing the report under Subsection (a), if actual data is not available, the comptroller shall use available statistical data to estimate the effect of an exemption, discount, exclusion, special valuation, special accounting treatment, special rate, or special method of reporting relating to a tax. If the report states that the effect of a particular tax preference cannot be determined, the comptroller must include in the report a complete explanation of why the comptroller reached that conclusion.
(b)  The report must include:
(1)  an analysis of each special provision that reduces the amount of tax payable, to include an estimate of the loss of revenue for a six-year period including the current fiscal biennium and a citation of the statutory or legal authority for the provision;  and
(2)  for provisions reducing revenue by more than one percent of total revenue for a tax covered by this section:
(A)  the effect of each provision on the distribution of the tax burden by income class and industry or business class, as appropriate;  and
(B)  the effect of each provision on total income by income class.
(c)  The report may include:
(1)  an assessment of the intended purpose of the provision and whether the provision is achieving that objective;  and
(2)  a recommendation for retaining, eliminating, or amending the provision.
(d)  The report may be included in any other report made by the comptroller.
(e)  At the request of the chair of a committee of the senate or house of representatives to which has been referred a bill or resolution establishing, extending, or restricting an exemption, discount, exclusion, special valuation, special accounting treatment, special rate, or special method of reporting relating to any state tax, the Legislative Budget Board with the assistance, as requested, of the comptroller shall prepare a letter analysis of the effect on the state's tax revenues that would result from the passage of the bill or resolution.  The letter analysis shall contain the same information as provided in Subsection (b), as appropriate.
(f)  The comptroller and Legislative Budget Board may request from any state officer or agency information necessary to complete the report or letter analysis.  Each state officer or agency shall cooperate with the comptroller and Legislative Budget Board in providing information or analysis for the report or letter analysis.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1997, 75th Leg., ch. 1035, Sec. 47, eff. June 19, 1997;  Acts 1999, 76th Leg., ch. 1467, Sec. 2.02, eff. Oct. 1, 1999.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 1266 (H.B. 3319), Sec. 14, eff. September 1, 2007.
Acts 2015, 84th Leg., R.S., Ch. 393 (H.B. 1261), Sec. 1, eff. September 1, 2015.