Honest Tax Impact Act
The Honest Tax Impact Model Act requires major tax proposals to include plain-language fiscal notes before hearings or votes. The Act explains who pays more, who pays less, and how changes may affect funding for services like schools, healthcare, and infrastructure. By requiring nonpartisan preparation and advance public disclosure, it improves transparency and reduces surprise tax policy.
Key Provisions
Plain-Language Fiscal Notes. Requires an accessible, non-technical summary explaining the real impacts of major tax bills.
Distributional Impact Analysis. Identifies how tax changes affect households, businesses, and regions across income levels.
Public Service Impact Disclosure. Explains potential effects on funding for core public services.
Independent Preparation. Assigns fiscal note preparation to nonpartisan legislative staff.
Advance Public Disclosure. Requires fiscal notes to be available before hearings or votes.
Model Language
Section 1. Short Title. This Act shall be known and may be cited as the “Honest Tax Impact Act.”
Section 2. Definitions. As used in this Act:
(a) “Major tax bill” means any bill or resolution that:
(1) Changes a tax rate, base, or assessment method;
(2) Creates, modifies, or eliminates a tax exemption, deduction, credit, rebate, or preferential treatment; or
(3) Alters the distribution or dedication of tax revenues;
and that is reasonably projected to increase or decrease state or local tax revenues by an amount equal to or greater than a threshold established by legislative rule or statute.
(b) “Plain-language fiscal note” means a concise, non-technical explanation of a bill’s fiscal and distributional impacts, written to be readily understood by the general public.
Section 3. Fiscal Note Requirement.
(a) A plain-language fiscal note shall be prepared for each major tax bill prior to:
(1) Consideration in a legislative committee;
(2) Floor debate; or
(3) Final passage.
(b) The fiscal note shall be prepared by the nonpartisan legislative fiscal office or another designated nonpartisan entity and shall include, to the extent practicable:
(1) An estimate of changes to state and local revenues;
(2) A distributional analysis describing how the bill affects taxpayers by income level, business type, and geographic region;
(3) A summary of potential impacts on funding for core public services;
(4) A clear statement identifying which groups are expected to pay more and which are expected to pay less.
Section 4. Publication and Timing.
(a) The plain-language fiscal note shall be made publicly available no fewer than seventy-two hours prior to any scheduled committee hearing or floor action on the bill.
(b) Fiscal notes shall be published in an accessible online format and made available at public hearings upon request.
Section 5. Supplementary Materials. Technical appendices, assumptions, and supporting data may accompany the plain-language fiscal note but shall not replace or obscure the required summary.
Section 6. Procedural Enforcement.
(a) A major tax bill may not advance through the legislative process without a completed plain-language fiscal note, except by a supermajority vote as determined by legislative rule.
(b) Nothing in this Act shall be construed to limit the legislature’s authority to establish additional procedural requirements.
Section 7. Severability. If any provision of this Act is held invalid, such invalidity shall not affect the remaining provisions.
Section 8. Effective Date. This Act shall take effect on [insert date] and apply to tax legislation introduced on or after that date.