Senate Bill 20-021 Summary

• Requires bills creating new tax expenditures or extending expiring tax expenditures to include a tax preference performance statement as part of a statutory legislative declaration, effective January 1, 2021.

• Tax preference performance statements must indicate at least one of five general legislative purposes: inducing designated taxpayer behavior, improving industry competitiveness, creating or retaining jobs, reducing structural tax inefficiencies, or providing tax relief for certain businesses or individuals.

• Performance statements must include detailed information with clear, relevant, and measurable metrics and data requirements allowing the General Assembly and State Auditor to evaluate the tax expenditure's effectiveness in achieving its stated purpose.

• Prohibits establishing tax expenditures for indefinite periods; bills creating new tax expenditures must include a repeal date after a specified period of tax years, and bills extending expiring tax expenditures must specify an extension period.

• Act takes effect August 5, 2020, unless a referendum petition is filed, in which case it requires voter approval at the November 2020 general election.