A periodic review and expiration dates of state and local tax preferences

Texas House Bill 3279, introduced in 2025, proposes the establishment of a Select Commission on Periodic Tax Preference Review. This commission would be responsible for regularly evaluating state and local tax preferences—such as exemptions, credits, and abatements—to determine their effectiveness and relevance. The bill also suggests setting expiration dates for these tax preferences, ensuring they are periodically reviewed and either renewed, modified, or allowed to expire based on their performance and necessity.

Supporters of HB3279 argue that the bill promotes fiscal responsibility by ensuring tax preferences are regularly assessed for their effectiveness. They believe this process will help eliminate outdated or inefficient tax benefits, potentially increasing state revenue and ensuring a fairer tax system. Proponents also suggest that periodic reviews will enhance transparency and accountability in tax policy.

Critics of HB3279 express concerns that the bill could create uncertainty for businesses and individuals who rely on existing tax preferences. They argue that setting expiration dates may discourage long-term investments and planning. Additionally, opponents worry that the periodic review process could become politicized, leading to inconsistent tax policies and potential disruptions in economic activities.