Note: This year IFF rated maintenance bills according to a more refined system. This is an enhancement bill, and will be rated as a standalone bill. IFF will only consider enhancement line items in these ratings. This means that FTP reductions passed in maintenance legislation will not be evaluated here, among other things.

Bill Description: House Bill 871 is an enhancement of $2,344,400 and 0.00 new full-time positions for the Tax Commission for fiscal year 2027. This legislation appropriates a total of $56,398,700 and 445 full-time positions to the agency.

Rating: -2

Is the continuation or growth in ongoing spending, if any, inappropriate for the changes in circumstances, scope of the agency, or current economic environment? Conversely, is the continuation or growth in ongoing spending appropriate given any change in circumstances or economic pressures?

This legislation authorizes an ongoing spending enhancement for the Tax Commission of $50,000, adding onto last year’s (FY26) ongoing spending increase of $1,223,600. FY26’s ongoing spending is wrapped into FY27’s base increase, making ongoing spending especially important to scrutinize. Volatility in these increases (or decreases) is to be expected, and makes discernment on the propriety of new spending imperative.

This ongoing expenditure solely consists of $50,000 for "Property Tax Education.” This increase is unwarranted, especially so in a deficit year.

(-1)

Does this budget incur any wasteful spending among discretionary funds, including new line items? Conversely, does this budget contain any provisions that serve to reduce spending where possible (i.e. base reductions, debt reconciliation, etc.)?

This legislation authorizes onetime spending for the Tax Commission of $2,294,400, adding additional expenditures after last year’s (FY26) onetime spending of $1,223,600. Onetime spending is often even more volatile than ongoing spending, which is to be expected due to the onetime expenses generally being utilized for projects or capital outlay. This also calls for special scrutiny and discernment. 

While some of these outlays, such as Seasonal Tax Employees ($353,000 GF) may be warranted due to tax conformity implementation, others are not. The FAST Tax Collection Services ($550,000 GF) was authorized, yet it was not even requested by the agency in their original budget submission. This spending is unwarranted, especially so in a deficit year.

(-1)