House Bill H0035

2015 Freedom Index Score: (-2)

Analyst: Parrish Miller
Date of analysis: January 23, 2015

ANALYST'S NOTE: House Bill 035 forces tax preparers (once they meet a filing threshold) and large
partnerships and large corporations to electronically file income tax returns.

Point No. 3 Does it give government any new, additional, or expanded power to prohibit, restrict, or
regulate activities in the free market? Conversely, does it eliminate or reduce government intervention in
the market?
ANALYSIS: House Bill 035 mandates that "a tax return preparer who is paid for preparing over
twenty-five (25) individual and business tax returns in a calendar year" [page 1, lines 16-18]; "a
partnership or S corporation with more than one hundred (100) partners or one hundred (100)
shareholders" [page 1, lines 27-28]; and "a corporation with more than ten million dollars
($10,000,000) in assets" [page 1, lines 32-33] submit their tax returns electronically to the state
tax commission. (-1)

Point No. 5 Does it directly or indirectly create or increase any taxes, fees, or other assessments?
Conversely, does it eliminate or reduce any taxes, fees, or other assessments?
ANALYSIS: House Bill 035 allows that "the state tax commission may impose a penalty not to
exceed five dollars ($5.00) on a paid preparer for each tax return" [page 1, lines 23-24] filed by
the preparer in a non-electronic form. (-1)