Bill > SB3278

This bill requires certain taxpayers who claim income tax credits or general excise and use tax exemptions to provide information to the Department of Business, Economic Development, and Tourism (DBEDT) as a condition of claiming these benefits. Specifically, for income tax credits (excluding certain types), taxpayers must report their name and the cost of the credit to the state annually for five years after first claiming it. For general excise and use tax exemptions, taxpayers must report their name, general excise tax license number, the amount exempted, and the total cost of the exemption to the state annually. DBEDT, in collaboration with the Department of Taxation, will use this information to study the effectiveness of these tax expenditures and report findings to the legislature annually. The Department of Taxation is also required to share relevant tax records and information with DBEDT upon written request, with certain confidentiality protections in place. The bill aims to ensure that tax expenditures, which function like government spending by reducing tax revenue, are regularly evaluated for their effectiveness and alignment with public priorities, with the collected information generally being publicly accessible.