SUMMARY:

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

REQUIREMENTS:

• “Tax expenditure,” for all intents and purposes, is defined as “tax exemptions.”
• The report would be required to contain:
• • The amount of tax revenue foregone for at least a 3-year period;
  • The amount covered in the Governor’s budget submitted in the previous January;
  • The amount covered in the current budget;
  • An estimate of at least one future year; and
  • The year it was enacted and the year it became effective;
  • A statement of the intended objective;
  • An analysis of whether it is achieving its intended objective;
  • The effect of the expenditure device on the distribution of the tax burden on others, as well as the administration of the tax system.

NOTE:

            This bill is similar in intent to HR 442.  Perhaps there is a growing awareness of the extensive nature of tax exemptions now that we are in such a deep recession.  However, as stated in the note to HR 442, experienced legislative observers know that action of this type is unlikely.  Time will tell.