The bill, titled "Honesty in State Taxation," aims to enhance transparency in how state taxes are identified and communicated to taxpayers. It introduces Chapter 102 to the Tax Code, which includes legislative findings that state taxes have often been obscured by being labeled as "fees," "levies," "surcharges," "assessments," "fines," and "penalties." The bill establishes definitions for terms such as "regulatory tax" and mandates that the legislature and state agencies must use clear terminology when referring to state taxes, ensuring that they are not misidentified as other types of charges.

Additionally, the bill requires state agencies to amend any references to state charges that are not accurately identified as taxes in their rules, materials, and publications. It also mandates that the commission reviewing state agencies consider necessary statutory revisions to align with the intent of this legislation. The provisions of this act are set to take effect on September 1, 2025.

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