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Community Tax Centers and EITC

It is important to create or expand community tax centers and access to free tax preparation assistance so that all regions of Texas are served. In 2010, community tax center programs in Texas prepared over 93,200 returns resulting in over $72 million in Earned Income Tax Credits, over $37 million in Child Tax Credits, over 3.1 million in Education Tax Credits, and over $142 million in refunds to hard working families. These free tax preparation services also saved participants over $10 million in fees that tax preparers would charge them for their services. There are over 200 VITA sites in Texas, located in over 40 counties throughout the state. In order to reach more Texans, community tax centers need support from public and private entities.

This campaign’s 2011 policy agenda will focus on creating state public policy to support and expand community tax centers across the state and increase the current products and programs.

Results from the 81st Legislature Regular Session in 2009

In the 2009 legislative session, there were five bills related to community tax centers and EITC. Below is a summary of how far each bill progressed throughout the session.

Passed and signed into law:

• HB 2360 instructs employers to provide employees with eligibility requirements and information on the Earned Income Tax Credit (EITC) during tax season. This information must be provided in person, electronically by email, through a flyer in writing, electronically as a payroll stuffer, or by first class mail. The Texas Workforce Commission (Commission) periodically shall notify employers of the requirements adopted under this legislation. The commission may adopt rules as necessary to implement this legislation.
  
  In addition, the comptroller shall produce and make available to employers by written notice and posting on its website a form that includes information on EITC and explaining the availability of and contact information for local volunteer income tax assistance (VITA) programs.
  

Vetoed by the Governor:

• HB 2888 establishes a VITA grant program within the Texas Department of Housing and Community Affairs (TDHCA)

Introduced but did not pass the state legislature:

• HB 1939 would allow facilitators of tax refund anticipation loans that do not collect fees or interest for the loans to claim exemption to the registration processing fee. (passed out of house committee)
• SB 1518 relates to the regulation of tax refund anticipation loans. (sent to committee but no public hearing)
• HB 956 instructs public schools to send EITC and VITA information home with students during tax season. (sent to committee but no public hearing)