(a) Beginning in 2024, the Fiscal Division shall prepare and submit a report every other year to the Legislature which lists all state tax expenditures and the estimated cost associated with each of the tax expenditures. For purposes of this section, tax expenditures means those state revenue losses attributable to the provisions of the constitution, state tax statutes, or rules adopted pursuant to the statutes, which allow a special exclusion, exemption, or deduction, or which provide a special credit or preferential tax rate. The report shall be organized according to the funds into which the tax expenditures would be dedicated but for the exemptions and rate differentials. The report shall be submitted at the same time that the Governor is required to submit his or her budget proposal to the Legislature.
Terms Used In Alabama Code 29-5A-46
Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
state: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Alabama Code 1-1-1
year: means a calendar year; but, whenever the word "year" is used in reference to any appropriations for the payment of money out of the treasury, it shall mean fiscal year. See Alabama Code 1-1-1
(b) The biennial tax expenditure report shall include the following:
(1) Each tax exemption and its constitutional and/or statutory citation.(2) An estimate of the revenue loss to the state caused by each of the tax expenditures for the most recently completed fiscal year.(c) The Fiscal Division may request and receive from the Department of Revenue or any other state or local agency or official any information necessary to complete the report required by this section. Such information shall be subject to the confidentiality and disclosure provisions of Section 40-2A-10; however, these provisions shall not prevent the aggregation and disclosure of any information necessary to transparently complete the report required by this section. In the event that lack of information prevents the Fiscal Division from making a reasonable estimate for any tax expenditure, the division shall list the expenditure with a notation that an estimate cannot be determined.(d) The House Ways and Means Education Committee and the Senate Committee on Finance and Taxation – Education shall conduct joint hearings on the tax expenditure report periodically at the call of the chairs. From time to time, the committees may report to the Legislature findings or recommendations developed as a result of the hearings.(e) This section does not apply to any incentives or other matters which are included in the report required by Section 40-18-379.
