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Bill

Bill

HB 199

TAX RETURN INFO FOR LFC EVALUATION

2025 Regular Session Introduced by Derrick Lente

Bill would grant Legislative Finance Committee access to tax return data for evaluating state tax expenditures and revenue impacts; pocket vetoed after passing both chambers.

Pocket Veto
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Bill Summary · HB 199

Legislative bill overview

HB 199 would have required the Legislative Finance Committee (LFC) to receive tax return information from the Taxation and Revenue Department to evaluate tax expenditures and revenue impacts. The bill passed both chambers with amendments before being pocket vetoed by the governor on April 14, 2025.

Why is this important

Tax expenditures (credits, deductions, exemptions) represent significant foregone state revenue, and the LFC needs detailed data to assess whether these programs achieve their intended policy goals and remain cost-effective. Without access to actual tax return data, legislative budget oversight relies on incomplete information, potentially allowing inefficient or underperforming tax incentives to persist.

Potential points of contention

  • Privacy concerns: Tax return data contains sensitive personal and business financial information; opponents worry about data security, unauthorized access, or misuse despite confidentiality protections
  • Executive authority: The governor's pocket veto suggests concern the bill infringed on executive branch prerogatives or bypassed standard confidentiality protocols in tax administration
  • Implementation complexity: Questions about data anonymization, reporting protocols, and the administrative burden on the Taxation and Revenue Department to process and prepare tax data for legislative review

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

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