The Comptroller’s office has updated A Field Guide to the Taxes of Texas (PDF). The report provides a graphic-rich overview of major state and local taxes, including historical collections as well as estimates of future revenue growth. The value of exemptions and other reductions to tax liability for the six major state taxes are also detailed.
The guide also links to in-depth state financial publications, offers an overview of the budget process and outlines the basics of local taxes.
Read/download/print the Field Guide here (PDF).
Governor Greg Abbott recently appointed TSCPA member, James L. “Jim” Minge, CPA, to the Credit Union Commission for a term set to expire on February 15, 2023. Minge, of Arlington, is the president and CEO of the Texas Trust Credit Union and a member of the Fort Worth Chapter of the Texas Society of CPAs. Congratulations!
Longtime TSCPA member, K. Michael Conaway, CPA, who represents the 11th Congressional District in Texas (which covers 29 counties including the cities of Midland, Odessa and San Angelo), is receiving bipartisan praise for his leadership of the House Intelligence Committee.
Members of the committee have overcome bitter discord that threatened to undermine the committee probe under the tenure of Rep. Devin Nunes (R-Calif.), who after being accused of coordinating with the White House, handed over leadership of the investigation to Rep. Conaway earlier this month. Democrats on the committee are singing the praises of the conservative Conaway as “very fair-minded” and “very cooperative,” with one — Rep. Mike Quigley (D-Ill.) — even noting he had “nothing negative at all” to say about him.
Read the Washington Post article here.
TSCPA’s legislation clarifying that governmental entities in Texas would be required to issue financial reports that are in accordance with GAAP as established by the Governmental Accounting Standards Board passed the Texas Senate yesterday with a 31-0 vote.
In 2007, the Texas Legislature passed legislation permitting state and local governments to opt out of complying with GAAP as it relates to postemployment benefits.
TSCPA asserts that it is not in the public interest to allow accounting methods other than GAAP. Obligations for future benefits should be reported so the public understands the size and cost of the obligation.
Additionally, CPA/Auditors will not issue unqualified opinions on audited financial statements that are not in accordance with GAAP. Non-compliance with GAAP also has the potential to affect the bond ratings for governmental entities.
The companion bill, HB1930, is set on the Texas House Calendar, hopefully receiving a positive vote next week.
Thanks to Senator Perry and Representative Frullo for filing the bills and to TSCPA’s key persons for contacting their legislators encouraging their support.
Adrian Van Zelfden, CPA, TSCPA and Austin Chapter member was honored recently with the passage of HCR66. Congratulations to Adrian!
TSCPA and Houston Chapter member, Mike Collier, announced last week that he is “assembling a campaign team to run against Dan Patrick for Texas Lt. Governor.” Collier, a Democrat, is stepping down from his position as Democratic Party finance chairman to start his campaign. Click here for the Tribune’s coverage.
GAAP Legislation Proceeding – HB 1930 and SB 753: We now have legislation in the House and Senate to eliminate the “opt out” to GAAP for state and local governments. Rep. John Frullo, CPA, (R-Lubbock) introduced the legislation in the House as HB 1930. It is identical to the bill in the Senate, SB 753, which was filed by Senator Charles Perry, CPA, (R-Lubbock). So we are now good to go and will work on getting co-sponsors on each bill. If your legislator expressed an interest in being a co-sponsor, please let us know so we can follow up with them.
Insurance Services Tax – HB2381 and SB1083: We have worked out a compromise solution on the insurance services tax issue that is on our legislative agenda for this session. The bills have been filed in the House and Senate by Senator Charles Perry (R-Lubbock) and Rep. John Frullo (R- Lubbock). They are Senate Bill 1083 and House Bill 2381 and you can read it here.
After many meetings with the Texas comptroller’s office we were able to work out a limited exemption for licensed CPA firms that have less than 1 percent of their total revenue from this type of insurance service/activity. The comptroller was willing to support that type of proposal and issue a no significant revenue impact statement. Any bill that was classified as having a significant revenue impact by the comptroller was going to be DOA in the Legislature. So while not a perfect fix, this proposal will provide relief for those who do a limited amount of this type of work. We encourage all our Key Persons and others to ask their legislators to support SB 1083 and HB 2381 and our efforts on this issue.