- within Insurance and Transport topic(s)
On Sept. 30, Texas' Acting Comptroller Kelly Hancock held his first yearly annual comptroller briefing since being appointed, providing updates on the current state of affairs and future goals.
Acting Comptroller's Opening Remarks
Acting Comptroller Hancock opened the briefing, speaking to a large audience and setting a positive tone. In addition to acknowledging comptroller staff for the efficiency displayed during the transition between the acting comptroller and previously sitting Comptroller Hegar, he: (1) spoke to Texas' robust rainy day fund (larger than some state budgets); (2) commented on the growth of the healthcare and hospitality sectors; (3) discussed modernizing tools used by the comptroller and education programs; and (4) emphasized the focus on increasing transparency and communication with the Texas taxpayer (among other things).
Data Processing Panel
The briefing included a panel with Jenny Burleson, director of tax policy, and local practitioners who are members of the Texas State Bar SALT Committee. The panel focused on data processing, emphasizing the breadth of the regime, and pointing to the difficulties in its implementation. Burleson advised taxpayers to be on the lookout for additional guidance (particularly related to bundled transactions).
Hearings, Litigation, and Direct and Indirect Tax Updates
Comptroller staff provided an overview of the hearings, litigation, direct, and indirect tax updates. During this update, the staff summarized the biggest changes in law resulting from the 89th Legislative Session and spoke to settlement efforts in advance of upcoming changes. The message was straightforward: Texas is looking to get more efficient and facilitate taxpayer compliance for all parties involved.
Data Centers, Enterprise Zones, Exemptions, and Other Tax Incentives in Texas
As a result of the 89th Legislative Session (as well as other efforts of the comptroller), Texas is implementing several tax incentive programs. Aside from the benefits of the newly expanded Research and Development Credit, Texas' data centers and enterprise zones make way for potential benefits under the property, franchise, and sales tax regimes.
Audit Update
Emma Fuentes, director of audit, provided insight into staffing and procedural updates in the audit sector. Fuentes discussed the agency's focus on recruitment, noting the comptroller's hiring efforts will focus on franchise tax (as opposed to sales tax) audit staffing.
Revenue Update
Tetyana Melnyk, director of the revenue estimating division, provided an update on Texas revenues. During her update, she discussed Texas' unemployment and labor statistics (largely tracking or exceeding federal numbers), spoke about the decrease in the oil production industry (almost exactly offset by the increase in gas production), and highlighted sectors that did not perform as estimated (alcohol consumption and motor fuel tax falling below estimated amounts). Melnyk noted that, while Texas' numbers appeared stronger overall, they generally track with the estimated amounts once inflation is considered.
Overall, the briefing provided updates on various tax matters, economic indicators, and administrative changes that may impact taxpayers and businesses operating in Texas.
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