LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 202 HLS 21RS 152
Bill Text Version: REENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 24, 2021 8:08 AM Author: BISHOP, S.
Dept./Agy.: Revenue
Subject: Vote Requirement For Tax Incentives Analyst: Greg Albrecht
LEGISLATIVE POWERS RE SEE FISC NOTE GF RV See Note Page 1 of 1
(Constitutional Amendment) Provides for an increased vote requirement when enacting certain new tax incentives
Current law requires a majority vote to enact tax exemptions, exclusions, deductions, rebates, or credits.
Proposed law will require a two-thirds vote to enact new tax exemptions, exclusions, deductions, rebates, or credits (Tax
incentives) beginning January 1, 2023. Beginning January 1, 2023, new tax incentives shall expire four years from
enactment, but their effectiveness can be extended for four-year periods an unlimited number of times with a two-thirds
vote. Any existing tax incentives that expire on or after January 1, 2023 are subject to these same renewal provisions.
To be submitted to the electors at the statewide election to be held on November 8, 2022.
EXPENDITURES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
REVENUES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $0 SEE BELOW SEE BELOW SEE BELOW $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0
EXPENDITURE EXPLANATION
There is no anticipated direct material effect on governmental expenditures as a result of this measure.
REVENUE EXPLANATION
The bill provides a higher vote threshold for enacting and renewing tax incentives that are enacted after January 1, 2023 or
that are currently scheduled to expire after January 1, 2023. While this may make it more difficult to enact such measures
and, consequently, hinder the erosion of the tax base, the higher threshold may also have little impact. A review of the final
passage votes at enactment or a previous renewal of nine tax incentives scheduled to expire in 2021 through 2026 indicates
that the favorable vote margin is typically well in excess of the two-thirds threshold being imposed by this bill. In practice,
most tax incentive bills do not pass the legislature under the current majority vote requirement. However, those measures
that do pass, typically receive well more than two-thirds vote.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Christopher A. Keaton
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Legislative Fiscal Officer