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Bill

HB 3279

Relating to a periodic review and expiration dates of state and local tax preferences.

89th Legislature (2025) Introduced by Harold Dutton

HB 3279 requires periodic review of Texas tax preferences with automatic expiration dates unless legislatively reauthorized, forcing evaluation of tax break costs and effectiveness.

Referred to Ways & Means
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Bill Summary · HB 3279

Legislative bill overview

HB 3279 would establish a periodic review process for state and local tax preferences (exemptions, deductions, credits, and other tax breaks) and create expiration dates for these provisions. The bill aims to create a "sunset" mechanism where tax preferences must be periodically evaluated and reauthorized or they automatically expire.

Why is this important

Tax preferences represent foregone government revenue and can create inefficiencies or inequities in the tax code. Without periodic review, outdated or underperforming tax breaks may persist indefinitely, potentially costing the state significant revenue while benefiting specific industries or groups. This mechanism would force legislative examination of whether each tax preference still serves its intended purpose and justifies its cost.

Potential points of contention

  • Business opposition: Companies and industries benefiting from existing tax preferences may lobby against sunset provisions, arguing they create uncertainty for long-term planning and investment decisions
  • Revenue implications: Automatic expiration could reduce revenue to businesses or organizations currently using these preferences, raising concerns about economic competitiveness and growth
  • Administrative burden: Implementing a comprehensive periodic review process requires staff resources and could create delays or backlogs in the legislative process
  • Selectivity concerns: How the bill determines which preferences to subject to review and what timeline is used could benefit some interests over others

Compiled from official sources — confirm details with the bill’s official record.

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