Evaluation of tax incentive programs advanced

Senators approved a resolution March 7 that will provide ongoing evaluation of the state’s tax incentive programs.

LR444, introduced by the Legislative Performance Audit Committee, will create the Tax Incentive Evaluation Committee. The committee will develop a proposal for evaluating the state’s tax incentive programs and report to the Legislature by Dec. 15, 2014.

Committee chairperson Sen. John Harms said existing goals for tax incentive programs are not specific enough.

“The key question we asked was how were [tax incentive programs] performing in comparison to the goals set by the Legislature,” he said. “While tax incentive program evaluations may not be able to fully answer the questions, there’s still value to be gained from the programs. We need to have another set of eyes to go in and review them.”

The new committee comprises the seven members of the Legislative Performance Audit Committee, the chairperson and vice chairperson of the Appropriations and Revenue committees and one other senator chosen by the Executive Board.

The committee is tasked with developing recommendations regarding specific and measurable goals for each tax incentive program and a process for regular evaluation.

Senators adopted the resolution on a 34-0 vote.