Relating to increasing transparency in terminology used in state statutes and publications regarding state taxation.

The text as introduced · 664 words

90R2267 SRA-D

By: Raymond
H.B. No. 375

A BILL TO BE ENTITLED

AN ACT

relating to increasing transparency in terminology used in state

statutes and publications regarding state taxation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle A, Title 2, Tax Code, is amended by

adding Chapter 102 to read as follows:

CHAPTER 102. HONESTY IN STATE TAXATION

Sec. 102.001. LEGISLATIVE FINDINGS AND INTENT. The

legislature finds that this state has hidden from taxpayers the

enactment and increase of state taxes by describing the taxes by

other names such as "fees," "levies," "surcharges," "assessments,"

"fines," and "penalties." It is the intent of the legislature to

establish honesty in state taxation and appropriately identify

state taxes.

Sec. 102.002. DEFINITIONS. In this chapter:

(1) "Regulatory tax" means a fee, levy, surcharge,

assessment, fine, penalty, or other charge of any kind imposed by

this state for a primary purpose other than to raise revenue for

general purposes, including:

(A) a charge imposed for a specific benefit

conferred or privilege granted directly to the taxpayer that is not

provided to a person who did not pay the charge and that does not

exceed the reasonable cost to this state of conferring the benefit

or granting the privilege;

(B) a charge imposed for a specific state service

or product provided directly to the taxpayer that is not provided to

a person who did not pay the charge and that does not exceed the

reasonable cost to this state of providing the service or product;

(C) a charge imposed for the reasonable

regulatory cost to this state related to the issuance of a license

or permit, the performance of an investigation, inspection, or

audit, or the enforcement of a state law or order;

(D) a charge imposed for the purchase, rental,

lease, or other use of state property; and

(E) a fine, penalty, or other monetary charge

imposed by this state for or in connection with a violation of a

state law or order.

(2) "State agency" means:

(A) a board, commission, department, or other

agency in the executive branch of state government that is created

by the constitution or a statute of this state, including an

institution of higher education as defined by Section 61.003,

Education Code, other than a public junior college, as defined by

that section;

(B) the legislature or a legislative agency; or

(C) the supreme court, the court of criminal

appeals, a court of appeals, or a state judicial agency.

Sec. 102.003. USE OF HONEST STATE TAXATION TERMINOLOGY

REQUIRED IN LEGISLATION. The legislature and the Texas Legislative

Council are directed to:

(1) not identify a state tax, including a regulatory

tax, as another type of state charge such as a "fee," "levy,"

"surcharge," "assessment," "fine," or "penalty" in any new statute

or resolution; and

(2) change a reference to a state charge that is not

correctly identified as a state tax in the course of otherwise

amending the state law containing the reference.

Sec. 102.004. USE OF HONEST STATE TAXATION TERMINOLOGY

REQUIRED IN STATE RULES, MATERIALS, PUBLICATIONS, AND ELECTRONIC

MEDIA. A state agency:

(1) may not identify a state tax, including a

regulatory tax, as another type of state charge such as a "fee,"

"levy," "surcharge," "assessment," "fine," or "penalty" when

proposing or adopting the agency's rules, reference materials,

publications, and electronic media; and

(2) shall change a reference to a state charge that is

not correctly identified as a state tax when amending the agency's

rules, reference materials, publications, and electronic media.

SECTION 2. Chapter 325, Government Code, is amended by

adding Section 325.0128 to read as follows:

Sec. 325.0128. REVIEW OF STATE AGENCIES FOR HONEST STATE

TAXATION TERMINOLOGY. As part of its review of a state agency, the

commission shall consider and make recommendations regarding

statutory revisions necessary to correctly identify state charges

as state taxes in accordance with the legislative intent prescribed

by Chapter 102, Tax Code.

SECTION 3. This Act takes effect September 1, 2027.