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Senate committee pulls SB386 after lengthy DFA exchange on federal tax reporting
Summary
Senators questioned a proposal to repeal a statutory report requirement on federal income tax changes. DFA officials said staff monitor federal changes but the annual statutory report has not been produced in years; senators directed the bill to be pulled down for further discussion.
Senators on the Revenue & Tax Committee paused consideration of Senate Bill 386 after extended questioning from committee members about a statutory requirement that the Department of Finance and Administration monitor changes to the federal Internal Revenue Code and report to the General Assembly.
Senator Dismang pressed Department of Finance and Administration representative Paul Gehring about how federal changes would be communicated if SB386 repealed the existing report requirement. Gehring said DFA staff continually monitor federal tax changes and produce legislative proposals when the department seeks to conform state law to federal changes, but acknowledged the specific statutory report the bill would repeal had not been produced in many years.
“...there’s staff that’s going to monitor, but there’s no one higher up the chain that’s giving a summary report,” Dismang said, expressing concern that without a required report, only issues DFA chooses to present would come to the legislature’s attention. Gehring confirmed the department would continue to monitor federal changes and would provide information upon request; he said the reporting requirement in statute dated to 1989 and DFA staff could not identify when the last report had been produced.
Senators said they wanted a discussion off the floor to clarify how DFA will notify legislative decision-makers when federal tax law changes have potential state implications. Senator Petty suggested pulling the bill for further work; the committee agreed and the chair announced SB386 was pulled down for additional review.
Action taken: SB386 was removed from consideration in the meeting and will be returned for further committee discussion. The record shows substantive concern focused on ensuring the General Assembly receives timely summaries of federal tax law changes that could affect state conformity and revenue scoring.
Votes at a glance: Motion — Pull down for further review; Outcome — Pulled down by unanimous consent for follow-up discussion.
