Requires the omnibus operating appropriations bill enacted by the legislature to include a section on the following: (1) All discretionary state tax expenditures together with an estimate of the state revenue impact associated with each expenditure;

(2) The total estimated revenue impact from all discretionary state tax expenditures, total appropriations, and total state expenditures representing the sum of discretionary state tax expenditures and appropriations; and

(3) The total state revenue impact from all nondiscretionary tax expenditures.

Changes the duties of the department of revenue with regard to preparation and submission of a listing of the amount of reduction in the revenues of the state, or the revenues of local government collected by the state, as a result of tax expenditures.

Requires the governor to prepare a tax expenditure report as part of the biennial budget documents.