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.