HBA-JRA H.B. 2950 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2950
By: Maxey
Ways & Means
4/23/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, the comptroller of public accounts is not required to report the
effect of certain tax exemptions on total income by income class or by
ethnic group.  The comptroller is also not required to report the final
effect, or incidence, of each tax on total income by income class or by
ethnic group.  This information would be valuable in determining the
percentage of each income class' earnings which are paid toward specific
taxes and whether the tax burden is equitably distributed. H.B. 2950
requires the comptroller to report the effect of certain exemptions on the
distribution of the tax burden by ethnic group and the effect of such
provisions on total income by income class and by ethnic group, as
appropriate, and to evaluate the tax burden on ethnic groups and the effect
of each tax on total income by income group and by ethnic group. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 403.014(b), Government Code, to provide that the
comptroller's report to the legislature on the effect of exemptions,
discounts, exclusions, special valuations, special accounting treatments,
special rates, and special methods of reporting relating to the sales,
excise, and use tax, franchise tax, school district property taxes, and any
other tax generating more than five percent of state tax revenue in the
prior fiscal year must include the effect of each provision reducing
revenue by more than one percent of total revenue for a tax covered by this
section on the distribution of the tax burden by ethnic group and the
effect of each provision on total income by income class and by ethnic
group, as appropriate.  Makes conforming changes. 

SECTION 2.  Amends Section 403.0141(c), Government Code, to require the
comptroller's incidence impact analysis to evaluate the tax burden on
ethnic groups and the effect of each tax on total income by income group
and by ethnic group.  Makes conforming changes. 

SECTION 3.  Effective date: September 1, 1999.

SECTION 4.  Emergency clause.