SUMMARY:

            This bill would amend Part 1 of Article 4 of Chapter 12 of Title 45 of the O.C.G.A. to require tax expenditure reviews as part of the budget report.

REQUIREMENTS:

• The bill would define “tax expenditures” as tax exemptions, allowances or deductions from any state taxes, including homeowner tax relief grants or local government assistance grants..
• The review would have to detail the lost tax revenue for at least a 3 year period, including the Governor’s budget from the preceding January, the current budget and an estimate of at least 1 year.
• It would have to state the intended objective of the tax expenditure, an analysis of whether the objective has been met and the effect on the distribution of the tax burden and administration of the system.

NOTE:

            This bill supports HR 442 that calls for a study committee on tax exemptions and their impact on state revenue.