Budget Amendment ID: FY2014-S3-39

OTH 39

Establishing Policy Goals and Reviews for Tax Credit Programs

Messrs. Montigny and Eldridge moved that the proposed new text be amended by inserting at the end thereof the following new sections:-

Section__ .  Section 89 of Chapter 62C, as appearing in the 2010 official edition, is hereby amended by adding the following new subsections:-

(c) the department of revenue, the executive office of administration and finance and the office of commonwealth accountability, performance and transparency shall, develop and publish by December 1, 2013 stated and measurable public policy objectives  and desired outcomes for each tax credit program as defined in section 1 of this chapter and  shall, in addition to any other analysis deemed appropriate, develop metrics for assessing the effectiveness of each such tax credit program at achieving its stated policy goals or outcomes, identify revenue foregone, beneficiaries and distribution of amounts received, and the number, nature and wages of jobs created or saved in the commonwealth, if applicable.

(d)  The department of revenue, the executive office of administration and finance and the office of commonwealth accountability, performance and transparency shall, after developing the metrics described in subsection (c) annually conduct a review and examination of all tax credit programs as defined in section 1 of this chapter. The administering agency of each tax credit program shall fully cooperate with the executive office of administration and finance, and department of revenue and shall provide it all information requested by the department of revenue and executive office of administration and finance needed to prepare the reports called for by this subsection. After completion of such review and examination, the department of revenue and executive office of administration and finance shall issue a report to the governor, and the House and Senate’s committees on way and means, revenue and post audit and oversight, on or before October 1 of each year, setting forth their findings and analysis on the effectiveness of each tax credit program at achieving its stated public policy goals and desired outcomes.

(e) All reports issued by the department of revenue under this section shall be a public record and shall published and made available to the public on the websites of the department of revenue and the office of commonwealth accountability, performance and transparency.

Section__ .  Chapter 63, as appearing in the 2010 official edition, is hereby amended by inserting after section 38BB the following new section:-

Section 38CC (a) the department of revenue shall, develop and publish within six months of the passage of this section stated and measurable public policy objectives for the single sales factor tax formula for manufacturing corporations, defense corporations and mutual fund service corporations under  Section 38 of this chapter and  shall, in addition to any other analysis deemed appropriate develop metrics for assessing the effectiveness of the single sales factor tax formula at achieving its stated policy goals, identify revenue foregone, including, but not limited to, the dollar amount of revenue foregone  by the adoption and utilization of the single sales factor pursuant  to section 38 as compared to the apportionment method in effect for the taxable year beginning on January  first, nineteen hundred and ninety five, the volume of sales by taxpayers utilizing the single sales factor,  the number and type of taxpayers utilizing the single sales factor formula, and the number, nature and wages of jobs created or saved in the commonwealth as a result of the use of the single sales factor formula by taxpayers.  The department shall promulgate rules and regulations implementing the provisions of this section, including but not limited to, regulations and rules requiring taxpayers utilizing the single sales factor formula to submit a report each year with its tax return for each taxable year containing information and data required by the department of revenue to comply with the provisions of this section.

(b)  The department of revenue shall, after developing the metrics described in subsection (a), annually conduct a review and examination of the single sales tax formula under section 38 of this chapter. After completion of such review and examination, the department shall issue a report to the governor and legislature’s committees on way and means, revenue and post audit and oversight setting forth their findings on the effectiveness of the single sales factor tax formula in section 38 of this chapter at achieving its stated public policy goals.

(c) All reports issued by the department of revenue pursuant to this section shall be public records and shall be published and made available to the public on the department’s website.