JLARC tax preference reviews
Tax preference reviews are studies that assess whether the state’s tax preferences are working as intended.
A tax preference is a reduction in the amount of state tax owed by an industry, business, or individual. These include tax exemptions, credits, deductions, exclusions, preferential rates, and deferrals.
Required elements
By law, JLARC analysts must evaluate these factors in a tax preference review.
- Public policy objectives: What did the Legislature intend to accomplish? Has the preference achieved those goals?
- Beneficiaries: Who is affected directly or indirectly by the preference? How much have they saved?
- Revenue and economic impacts: What are the impacts to the taxpayers and the state?
- Other states: Do other states have a similar tax preference?
- Racial equity: What is the effect, if any, on racial equity?
- Recommendations: Should the Legislature continue, modify, clarify, or terminate the tax preference?
Schedule
The Citizen Commission for Performance Measurement of Tax Preferences sets a 10-year review schedule each May. Each year, JLARC staff issue the reports on a standard schedule each year:
- July: Present preliminary report to JLARC.
- August – October: The Citizen Commission considers the report, hears public testimony, and adds comments.
- December: Present the final report to JLARC.
- January: Present the final report to the legislative fiscal committees.
Upcoming meetings
View 2025 meeting schedule
