The Washington State Legislature established new requirements in 2013 to improve the clarity of tax preference policy purposes and performance expectations. It also directed the Legislative Auditor to recommend appropriate data and metrics to improve evaluations of new tax preferences. This report contains:
(1) a conceptual framework to help develop the purpose, data, and metrics for a tax preference, built on the concept of a logic chain;
(2) a bill drafting guide to put the concepts into a statutory tax preference performance statement; and
(3) eight additional observations for legislators to consider, which can impact how a tax preference is expected to perform and how it will be evaluated.