Business Tax Advisory Committee Preparing Report to 82nd Legislature

On November 3^rd the Business Tax Advisory Committee met to review the report for the 82^nd Legislature. Associate Deputy Comptroller Mike Reissig presented the Business Tax Advisory Committee with a summary of the Committee’s final draft report to the 82^nd Legislature. The report provides a technical assessment of the business tax’s performance, without addressing Texas’ broader budget picture and deficit. Section 3 titled “Observations” is new to the report and discusses the tax’s underperformance. For fiscal year 2010, the state’s revenue was $3.9 billion. However, the state’s anticipated revenue by fiscal year 2010 was $6.4 billion. Of the $2.5 billion difference, $1 billion is attributed to the recession and $1.5 billion to the underperformance of the business tax. The Committee’s deadline for further comment submission on the report is November 24^th.

A complete copy of the report and hearing materials are available for all HillCo Clients at the following address: http://login.hillcopartners.com/node/802.  If you are a HillCo client and do not have a user login, you can easily acquire one by visiting www.hillcopartners.com and click on the “log-in” link.