AN ACT CONCERNING THE COLLECTION COSTS OF STATE TAXES AND FEES.

HB 5412 requires every state agency that collects taxes or fees to assess whether the cost of collecting each tax/fee exceeds the revenue it generates. If an agency finds that collection costs surpass the revenue, the bill mandates elimination of that tax or fee. This directly affects state agencies managing tax/fee collections and taxpayers who pay inefficiently collected taxes or fees, as the Finance Committee would be required to propose eliminating such items. The bill aims to remove revenue-generating mechanisms that cost more to collect than they produce.