Questions for Stakeholders to Address at the September 19, 2014 Meeting
Background: Each year the Citizens Commission for Performance Measurement of Tax Preferences (Citizens Commission) schedules specific tax preferences for review. These preferences are divided into two groups: those that receive an in-depth review by JLARC staff and those that receive only an expedited review. Expedited reviews are items that did not receive a JLARC evaluation because of budgetary and staff constraints. Generally, preferences receiving an expedited review have one or more of the following characteristics: (1) termination of the preference would not result in increased revenue; (2) preference has a small revenue impact; (3) preference has a limited number of beneficiaries; (4) preference has no beneficiaries or has not been used; and/or (5) beneficiary is a nonprofit entity. Although JLARC staff does not conduct an in depth review, the Citizens Commission may choose to review and comment on specific expedited preferences.
Questions for Stakeholders to Address on Both In-Depth and Expedited Reviews
Commissioners request that stakeholders include responses to the following four questions when presenting written or oral testimony in support of, or in opposition to, a tax preference:
- Is there evidence that the tax preference achieved its purpose, as noted in the 2014 tax preferences reports? Please provide any relevant evidence.
- Does the preference provide benefits in addition to those stated in its intended or implied purpose?
- Does the economic activity stimulated by this tax preference exceed the loss of revenue to the state?
- Does this preference have negative consequences? For example, were other industries, workers, or the environment harmed by activities stimulated by this tax preference?
The above Questions for Stakeholders notes that the Commission may choose to review and comment on specific expedited preferences. Linked is a document prepared by JLARC staff (using primarily DOR information) that summarizes the 2014 expedited preferences.