(a) The Fiscal Division shall prepare and submit an annual report to the Legislature which lists all state tax expenditures and the estimated cost associated with each of the tax expenditures. For purposes of this section, tax expenditures means those state revenue losses attributable to the provisions of the constitution, state tax statutes, or rules promulgated pursuant to the statutes, which allow a special exclusion, exemption, or deduction, or which provide a special credit or preferential tax rate. The report shall be organized according to the funds into which the tax expenditures would be dedicated but for the exemptions and rate differentials. The report shall be submitted at the same time that the Governor is required to submit his or her budget proposal to the Legislature.

(b) The annual tax expenditure report shall include the following:

(1) Each tax exemption and its constitutional and/or statutory citation.

(2) An estimate of the revenue loss to the state caused by each of the tax expenditures for the most recently completed fiscal year.

(c) The Fiscal Division is authorized to request and receive from the Department of Revenue or any other state or local agency or official any information necessary to complete the report required by this section. Such information shall be subject to the confidentiality and disclosure provisions of Section 40-2A-10; however, these provisions shall not prevent the aggregation and disclosure of any information necessary to transparently complete the report required by this section. In the event that lack of information prevents the Fiscal Division from making a reasonable estimate for any tax expenditure, the division shall list the expenditure with a notation that an estimate cannot be determined.

(d) The House Ways and Means Education Committee and the Senate Committee on Finance and Taxation - Education shall conduct joint hearings on the tax expenditure report every even-numbered year to be concluded by the tenth legislative day of the regular session of the Legislature. From time to time, the committees may report to the Legislature findings or recommendations developed as a result of the hearings.

(e) This section does not apply to any incentives or other matters which are included in the report required by Section 40-18-379.