06 LC 18
5383
House
Bill 1540
By:
Representatives Fludd of the
66th,
Orrock of the
58th,
Murphy of the
120th,
Stephenson of the
92nd,
Mosby of the
90th,
and others
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Title 48 of the Official Code of Georgia Annotated, relating to revenue
and taxation, so as to provide for periodic tax expenditure reports; to provide
for legislative findings and declarations; to provide for definitions; to
provide for the contents of such reports; to provide for powers, duties, and
authority of the Governor and the state revenue commissioner; to provide for
related matters; to provide an effective date; to repeal conflicting laws; and
for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Title
48 of the Official Code of Georgia Annotated, relating to revenue and taxation,
is amended by striking the "Reserved" designation of Chapter 18 and inserting in
its place a new Chapter 18 to read as follows:
"CHAPTER
18
48-18-1.
(a)
The General Assembly declares that the ability to make fiscally sound and
effective spending decisions will be enhanced by requiring agencies and programs
to develop performance measures and to evaluate all general funds, state lottery
funds, and other expenditures in accordance with the performance measures
provided under this chapter. Fiscal pressure on this state requires even
greater accountability and necessitates a review of the fairness and efficiency
of all tax deductions, tax exclusions, tax subtractions, tax exemptions, tax
deferrals, preferential tax rates, and tax credits.
(b)
The General Assembly finds that an accurate and accountable state budget should
reflect the true costs of tax expenditures and should fund only those tax
expenditures that are effective and efficient uses of limited tax
dollars.
(c)
The General Assembly further declares that it is in the best interest of this
state to have prepared a biennial report of tax expenditures that will allow the
public and policymakers to identify and analyze tax expenditures and to
periodically make criteria based decisions on whether the expenditures should be
continued. The tax expenditure report will allow tax expenditures to be debated
in conjunction with on-line budgets and will result in the elimination of
inefficient and inappropriate tax expenditures, resulting in greater
accountability by state government and a lowering of the tax burden on all
taxpayers.
48-18-2.
As
used in this chapter, the term:
(1)
'Full sunset' means any provision that completely eliminates an existing tax
expenditure on a specified date.
(2)
'Partial sunset' means any provision that reduces the amount of an existing tax
expenditure or that alters the eligibility requirements for the expenditure as
of a specified date.
(3)
'Tax expenditure' means any law of the federal government or this state that
exempts, in whole or in part, certain persons, income, goods, services, or
property from the impact of established taxes, including but not limited to tax
deductions, tax exclusions, tax subtractions, tax exemptions, tax deferrals,
preferential tax rates, and tax credits.
48-18-3.
(a)
The Governor shall prepare each year a tax expenditure report for the period
beginning July 1 of the following year.
(b) The
commissioner shall advise and assist the Governor in the preparation of the tax
expenditure report.
(c)(1)
Not later than November 10 of each year, the Governor shall cause the tax
expenditure report to be compiled and prepared for printing.
(2)
In the tax expenditure report, the Governor shall:
(A)
List each tax expenditure;
(B)
Identify the statutory authority for each tax expenditure;
(C)
Describe the purpose of each tax expenditure;
(D)
Estimate the amount of revenue loss caused by each tax expenditure for the
coming year;
(E)
List the actual amount of revenue loss in the preceding year for each tax
expenditure or an estimate if the actual amount cannot be
determined;
(F)
Determine whether each tax expenditure has successfully achieved the purpose for
which the tax expenditure was enacted and currently serves, including the
financial benefit to the state;
(G)
Categorize each tax expenditure according to the programs or functions each tax
expenditure supports;
(H)
Identify each tax expenditure that has a full sunset or partial sunset that, if
allowed to take effect, will have a fiscal impact on the state or on school
districts for the next year; and
(I)
Shall prepare a recommendation as to each tax expenditure identified under this
paragraph that indicates the
Governoŕs
opinion on whether the full sunset or partial sunset of the tax expenditure
should be allowed to take effect as scheduled or should be revised to a
different
date."
SECTION
2.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.