Policy Agenda - A Sound Tax Structure
A sound tax structure is critical to providing adequate funding for vital public services. During the 2013 legislative session, lawmakers enacted critically important legislation to improving accountability and efficiency in our state's tax structure. Lawmakers turn up the volume on silent spending
. Legislation finally passed that requires 15 specified economic development incentives to be evaluated every three years. Any tax incentives enacted for economic development purposes in the future will be evaluated as well. The legislation provides a detailed framework for the evaluation including as a cost-benefit analysis, estimate of the number of jobs created, and estimate of the extent to which benefits remain in, or flow out of, the state. It also ensures that tax incentives will be included in the state budget debate, by requiring the Governor to include any recently evaluated tax expenditures in his or her budget with a recommendation as to whether it should be continued, modified, or terminated.