SB119 Alabama 2015 Session

Summary

Primary Sponsor

Bill Hightower

Republican

Session

Regular Session 2015

Title

Legislative Fiscal Office, tax exemptions, annual report to Legislature of "tax expenditures" from exemptions

Summary

SB119 requires an annual tax expenditure report by the Legislative Fiscal Office detailing all state tax expenditures and their estimated revenue losses, to be provided with the Governor's budget submission.

What This Bill Does

Starting in 2017, the Legislative Fiscal Office must prepare and submit an annual report listing all state tax expenditures and the estimated cost of each. The report defines tax expenditures, is organized by the fund affected, and is submitted at the same time as the Governor's budget proposal. The LFO can request information from the Department of Revenue and other agencies, and may use aggregated data while protecting confidentiality; if a value cannot be estimated, it will be noted. Every even-numbered year, two Senate/House committees will hold joint hearings on the report to discuss findings or recommendations, with certain incentives excluded from this act.

Who It Affects

• State agencies (Legislative Fiscal Office, Department of Revenue, and other state/local agencies) must provide data needed to complete the report, subject to confidentiality rules.
• The Legislature and, by extension, taxpayers, will gain greater transparency about tax expenditures and will use the biennial hearings and findings to inform budget and policy decisions.

Key Provisions

• Beginning in 2017, the Legislative Fiscal Office shall prepare and submit an annual tax expenditure report to the Legislature listing all state tax expenditures and their estimated revenue loss.
• The report shall define 'tax expenditures' and be organized by the funds affected; it shall be submitted at the same time as the Governor's budget proposal.
• For each tax expenditure, the report includes the exemption and its constitutional/statutory citation and an estimate of the revenue loss for the most recently completed fiscal year.
• The Legislative Fiscal Office may request information from the Department of Revenue or other agencies; data is subject to confidentiality rules but may be disclosed in aggregate to complete the report; if an expenditure cannot be reasonably estimated, it must be noted as not determined.
• House Ways and Means Education Committee and Senate Finance and Taxation - Education shall conduct joint hearings on the tax expenditure report every even-numbered year, concluding by the tenth Legislative day of the regular session, with possible findings or recommendations.
• This section does not apply to incentives or other matters included in the report required by Section 40-18-379 (Act 2015-27).
• The act becomes effective immediately following its passage and approval by the Governor (or otherwise becoming law).

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Legislative Fiscal Office