JLARC staff reviewed 22 tax preferences in 2016, which are organized into 14 reports below. View a more detailed summary of all the preferences here.
The Citizen Commission for Performance Measurement of Tax Preferences adopted the same position as the Legislative Auditor on all of the recommendations, with the exception of one (Rural Electric Cooperative Finance Organizations). Click here to view the letter summarizing their comments.
The Citizen Commission for Performance Measurement of Tax Preferences also considers preferences based on information provided by the Department of Revenue. View the 2016 expedited preference report here (PDF).
Seven of this year’s reviews identify problems with the accuracy of information reported to DOR on the use of the preferences, particularly sales tax preferences. JLARC staff are working with staff from the Department of Revenue and the legislative fiscal committees to achieve more accurate reporting in future years.
|Click the preference below for details||Estimated Biennial Beneficiary Savings||Legislative Auditor Recommendation||Commissioner Recommendation|
|Clay Targets||Unknown||Review and Clarify||Endorsed|
|Custom Software||$269.3 million||Continue||Endorsed|
|$55 million||Review and Clarify||Endorsed|
|Data Center Equipment
|Flavor-Imparting Items||Unknown||Review and Clarify||Endorsed|
|Fuel Used By Mint Growers||$210,000||Allow to Expire||Endorsed|
|Nonresident Large Private Airplanes||Unknown||Review Prior to Expiration in 2021||Continue|
|Rural Electric Cooperative Finance Organizations||Unknown||Modify the Preference||Did not endorse|
|Self-Service Laundry||$11.9 million||Continue||Endorsed|
|Semiconductor Materials Manufacturing Preferences
| Not Disclosable (1);
$3.2 million (1);
Not in Use (6)
|Review and Clarify (2);
|Solar Energy and Silicon Product Manufacturers Preferences||$1.1 million||Review and Clarify||Endorsed|
|Syrup Taxes Paid
|Timber and Wood Products (2 preferences)
|$30.6 million (1);
| Review and Clarify (1);
|$591.4 million||Review and Clarify||Endorsed|