Transcript Highlights:

• </c> They responded with a severance tax. They responded with a severance tax.
• tax will have severe generation tax will have severe uh<02:00:59.679><c> reflection</c><02:01:00.159
• /c> addition of severance tax in there as addition of severance tax in there as well.<02:52:56.319><c
• severance tax there.
• </c><02:54:35.840><c> of</c> indirect severance tax just for lack of indirect severance tax just for

Committee: Joint Revenue

Keywords: 916, all

Transcript Highlights:

• And talk a little bit about severance taxes and rents and royalties.
• Severance taxes represent about 20% of our total general fund.
• And that translates into severance taxes, gross receipts taxes, and personal income taxes in New Mexico
• Revenue will be deferred to the permanent severance tax. I'm sorry. Thank you, Mr.
• You can send it to the severance tax permanent fund if you wanted to. Thank you.

Committee: House House Appropriations & Finance

Transcript Highlights:

• Not all of the tax revenue from severance taxes that normally is applicable to the economic stabilization
• Is oil and gas tax severance tax revenue.
• And then the following year, no severance tax will transfer.
• , severance taxes.
• , um, but is it accurate to say that, that surplus is mainly driven by sales tax, um, severance taxes

Committee: House Ways & Means

Transcript Highlights:

• </c><02:01:02.800><c> taxes</c> severance tax and the severance taxes severance tax and the severance
• </c> doesn't pay severance tax. doesn't pay severance tax.
• pays a severance tax, and oil and gas pay severance tax, coal pays severance tax, but within those industries
• </c> severance tax. severance tax.
• </c> severance taxes and the royalties. severance taxes and the royalties.

Keywords: 916, all

Transcript Highlights:

• Not all of the tax revenue from severance taxes that normally is allocable to the Economic Stabilization
• that amount is $5.6 million. billion in 2627 is oil and gas tax severance tax revenue that normally would
• It grows over time, but not fast enough to accommodate. money from severance taxes. 215 I guess that
• So, during all those years. years, then there will be severance tax that remains as GR because it's not
• But is it accurate to say that surplus is mainly driven by sales tax, severance tax?

Committee: House Ways & Means

Keywords: 1184, house, all

Transcript Highlights:

• revenues, specifically personal income tax cuts that have been enacted over the last several years,
• And then severance related taxes, what is the. The tax base is the taxable value of the product.
• And with your help, we have been able to repeal several tax expenditures that either weren't Being used
• taxes So, previously, under this tax code, the tax base was based on just severed.
• Now, like other taxes, the severance tax conservation tax, it's severed and sold.

Committee: Joint Revenue Stabilization & Tax Policy Committee

Keywords: 996, all

Transcript Highlights:

• And several of the people who presented ideas noted that with both sales tax on electricity plus the
• Um several if you read through the list of ideas several um people propose that we Tax hydrogen or whatever
• , not a $2 tax.
• </c> tax was about $210. tax was about $210.
• So 3 cents a kilowatt tax, not a $2 tax.

Keywords: 919, house, all

Summary: The working group approved the prior meeting minutes with one correction to reflect Laura Ziggler’s attendance. Staff then outlined the report due February 13, 2026, which must summarize the group’s activities and include findings and recommendations adopted by the group; the report will go to the governor and legislative transportation leaders. The chair emphasized that the group’s charge is broad and includes analyzing electricity used as vehicle fuel infrastructure opportunities and barriers, developing policy and funding recommendations for sustainable transportation funding, and reviewing other states’ laws and policies. Discussion focused heavily on how to replace declining gas tax revenue as more vehicles become electric. The chair framed the issue as a fairness and implementation challenge, noting that EVs are a growing share of the fleet and that the group should consider both policy and funding, not just one or the other. Members and guests raised several ideas already submitted, including a road user charge, changes to the EV charging tax, ending or modifying the EV surcharge, broadening the tax to publicly owned charging stations, reducing the charging level threshold to level 2, ending sales tax on electricity, addressing off-road use, and expanding the definition of auto parts to include charging equipment. Representative Elkins argued that charging based on electricity used at home is impractical for most vehicles, that public charging is already much more expensive than home charging, and that the current sales tax plus surcharge amounts to double taxation for public-charging users. He said a mileage-based user charge modeled on Utah’s approach is workable, could be phased in, and could preserve privacy by allowing a voluntary or alternative method for home charging estimates. Senator Howe responded that home electricity use can be estimated similarly to mileage deductions on taxes and said the state should tax all electricity used as fuel, regardless of charger level, if it can be identified. Other speakers echoed that all road users should pay a fair share and that the main challenge is implementation. Tony Kis of Quick Trip asked that a late letter be included in the record and urged clarification of the sales, use, excise tax, and collection rules to avoid double taxation and reduce administrative burden, noting the current monthly collection date and suggesting the group should streamline collection methods. No final policy decisions or votes were taken beyond approval of the minutes.

Transcript Highlights:

• rates and larger tax refunds. several discussions on when we expect uh several discussions on when we
• We did move the coal severance tax into other, and I'm going to yield to Dr.
• </c> Um, we did move uh the coal severance Um, we did move uh the coal severance tax<01:41:48.480><c>
• the fact that severance taxes have no meaningful alternative scenario for the remaining revenue sources
• that uh severance taxes but the fact that uh severance taxes but there's<01:46:29.840><c> no</c><01:

Keywords: 958, all

Summary: The meeting focused on reaching consensus on official Kentucky revenue estimates for fiscal years 2026 through 2028, using updated S&P Global economic forecasts compared with the September presentation. Staff explained that the updated forecast relied partly on alternative data because of the federal government shutdown, and they walked through changes in national and Kentucky economic assumptions across control, optimistic, and pessimistic scenarios. The control forecast was described as slightly more optimistic in the near term but more cautious in fiscal 2027 and 2028, with GDP growth revised up for the current year and down somewhat in the outer years. The pessimistic scenario now assumed a two-quarter recession beginning in the current quarter, while the optimistic scenario was given a higher probability weight than before. The presenters highlighted several Kentucky-relevant variables that changed since September, including weaker manufacturing employment, weaker housing starts, weaker consumer sentiment, and lower expected non-farm employment in fiscal 2026. At the same time, wage and salary disbursements were revised upward in fiscal 2027, reflecting higher disposable income from tax changes, and real consumer spending was expected to be stronger in the near term. They also discussed assumptions about tariffs, business profits, the Federal Reserve, unemployment, oil prices, retail sales, vehicle sales, exports, and consumer sentiment, noting that some indicators were little changed while others shifted materially. Consumer sentiment was attributed to affordability concerns, tariff impacts, and a general sense of malaise, but was expected to improve in later years from a low base. Members asked follow-up questions about why the forecast worsened in later years and about the consumer sentiment assumptions. Staff responded that the forecast assumed larger take-home pay and refunds from tax withholding changes, along with some easing of tariff effects, which they believed would help offset a negative wealth effect from stock market declines. They also noted that S&P Global’s December forecast, which had already been published, was essentially consistent with the presentation and that the firm believed its earlier assumptions had tracked recent data well. No vote or final action was recorded in the portion provided, but the discussion was aimed at settling the revenue estimates that will underpin the upcoming branch budget bills.

Transcript Highlights:

• So, there is a A five-year average of severance tax revenue is calculated.
• Funds are deposited into this reserve from the Oil and Gas Emergency School Tax, the severance tax, as
• Funds and the Severance Tax Permanent Fund here in the last.
• So the severance tax permanent.
• Or the severance tax, it's called the Oil and Gas Emergency School Tax that would flow into the TSR.

Committee: House Investments & Pensions Oversight Committee

Transcript Highlights:

• But the portion, a portion of the of the severance tax, it needs to be allocated, and we call this the
• That's a net of 9% of the total oil and gas severance tax goes into the growth fund that's to be spread
• Roads, $3 billion last year to the state highway fund from the severance tax reductions.
• The state broadband fund was funded in part from severance taxes a couple of years ago.
• That's it, over a billion dollars in severance tax revenue last year.

Bills: HB188 , HB 265 , HJR35

Committee: House Appropriations

Keywords: emergency preparedness, flood-prone communities, Texas Rural Emergency Preparedness Fund, disaster relief, funding, youth camp, safety regulations, advisory committee, child welfare, health standards, summer camp, camp safety, child abuse reporting, child neglect, mandatory reporting, background check, criminal history check, sex offender registry, CPR training, first aid

Transcript Highlights:

• And so this tax is due monthly, and all proceeds go directly to the severance tax permanent fund.
• And so this tax is due monthly, and all proceeds go directly to the severance tax permanent fund.
• So we're not calling it any kind of severance. It's just merely an excise tax.
• , but oil and gas does as well, as well as the severance taxes.
• in addition with severance taxes.

Committee: House House Energy, Environment & Natural Resources

Keywords: 996, all

Transcript Highlights:

• , but property taxes.
• </c> property taxes tax related to the property taxes tax related to the pension<00:54:15.040><c> fund
• We've seen million-dollar cuts over the last several years, so there's been some overrides of the tax
• So several years ago, when our tax cap was not at the typical 1.7% to 2.4%, but was at 5.9%, the Town
• So several years ago, when our tax cap was not at the typical 1.7% to 2.4%, but was at 5.9%, the Town

Committee: Senate Finance

Keywords: 1191, senate, all

Transcript Highlights:

• The other primary bill took the tax of severing natural resources on the occupation of severing natural
• The other primary bill took the tax of severing natural resources on the occupation of severing natural
• The severance tax permanent fund was also added to the New Mexico Constitution, and it was approved by
• In 2021, more COVID relief tax rebates, the first of several tax rebates for taxpayers, a three-month
• And I know the gross receipts tax was increased over several years.

Summary: The committee’s final day focused first on a historical overview of New Mexico tax packages by Pam Stokes of Legislative Council Services. She described how tax packages have alternated over the decades between tax relief, revenue raising, and tax reform, with examples ranging from the creation of the gross receipts tax in 1966 to major packages in 1981, 1986, 1991, 1994, 2005, 2019, 2022, 2024, and the vetoed 2025 package. Members discussed how tax policy often tracks revenue conditions, how packages can combine increases and decreases, and how local government gross receipts taxes and hold-harmless distributions have affected communities differently. Several members reflected on past packages, especially the 2004 food tax repeal and the 2013 film tax and manufacturing changes, and noted that tax policy can have major economic and political effects even when it is not “sexy” legislation. The committee then heard a proposal to expand the health care practitioner gross receipts tax deduction to include co-insurance, and to extend the sunset date. Sponsor Senator Figueroa said the bill was intended to help recruit and retain medical providers and build on prior deductions for co-pays and deductibles. Testimony explained that co-insurance is the patient’s share after the deductible, that providers currently absorb the gross receipts tax on those payments, and that the proposal would cost about $30 million to the state plus about $20 million to municipalities and counties, with the exact fiscal impact likely to be updated. Members raised concerns about the effect on local governments, whether insurers could be required to reimburse providers, whether the bill would actually attract doctors, and whether better evaluation measures and sunsets should be added. The sponsor said the bill was part of a broader set of efforts to address provider shortages and that the discussion would continue. Representative McQueen then presented a bill to update the Land Conservation Incentives Act. He and conservation partners said the program has protected more than 500,000 acres but has not kept pace with rising land values, especially for irrigated agricultural land in the Middle Rio Grande. The proposal would increase the percentage of conservation value eligible for the credit, raise the per-transaction cap from $250,000 to $2 million, and make the credit refundable rather than only transferable. Testimony emphasized that the program is voluntary, keeps land in private ownership and production, and helps land-rich, cash-poor landowners preserve farmland and water rights. Members asked about average credit amounts, how easements work, whether landowners could effectively buy land and then use the credit, and whether there should be inflation indexing or a statewide cap. The discussion also touched on water rights, fencing, and the role of conservation easements in protecting agricultural land and compact water deliveries. Finally, Senator Sharer previewed his 2% tax proposal with a historical presentation on New Mexico tax law, using props to illustrate the evolution from early territorial tax codes to the modern tax system. He argued that the state’s current tax structure is overly complex and that recent federal changes have disrupted the personal income tax base. The committee did not take any votes on the day’s presentations; the meeting was primarily informational, with members offering feedback and raising policy concerns for future sessions.

Transcript Highlights:

• The amendment contains several new sales tax exemptions.
• The amendment contains several new sales tax exemptions.
• The amendment contains several new sales tax exemptions.
• This is not the tax package that we voted on several weeks ago. It's incredibly different.
• This is not the tax package that we voted on several weeks ago. It's incredibly different.

Summary: The House met on the final day of session, swore in Representatives Boyles and Hodgers, and observed a moment of silence for the Minnesota House Speaker Melissa Hortman and her husband, as well as for Representative Rosenwald’s father. The chamber then moved into final budget work, with leaders outlining the plan to take up H.J.R. 5019, HB 7031, HB 5017, HB 5015, and then the general appropriations act once the Senate transmitted it. H.J.R. 5019, a proposed constitutional amendment to expand the budget stabilization fund, was explained and amended to raise the rainy day fund cap, require annual deposits, and allow withdrawals for critical state needs by a two-thirds vote; it passed 100-1. The House then adopted the conference report on HB 7031, the tax package. The bill repeals the business rent tax and aviation fuel tax, delays the natural gas fuel tax, creates or expands several sales tax holidays and exemptions, including permanent exemptions for disaster-preparedness items, hunting/fishing/camping items, and ammunition and firearms-related purchases, and makes changes to property, corporate income, local tax, and economic development provisions. Members debated the removal of recurring housing trust fund and transit-related revenue streams, the new ammunition exemption, and the data center tax changes; supporters argued the package reduces taxes and preserves annual budget flexibility, while opponents raised concerns about housing, transportation, and gun violence. The conference report passed 93-7. HB 5017, creating a debt reduction program funded by a recurring transfer to retire state bonds early, passed unanimously. HB 5015, the state group insurance conforming bill, which directs DMS to develop a formulary management plan and codifies the administrative health insurance assessment, also passed. The House then began explanation and questions on the fiscal year 2025-26 general appropriations act, described as a $115.1 billion budget that is down $3.8 billion from the current year and includes more than $12 billion in reserves. Subcommittee chairs summarized major spending areas, including pre-K-12 funding increases, health care funding for Medicaid, KidCare, nursing homes, opioid treatment, and mental health, transportation and economic development funding, environmental and water projects, higher education, state administration, justice, and information technology. Questions focused on school vouchers, inflationary pressures on school districts, and the adequacy of funding for housing, transportation, and other priorities.

Transcript Highlights:

• severance tax and then the extraction tax with the exemption for the stripper wells in the far-right
• severance tax and then the extraction tax with the exemption for the stripper wells in the far-right
• Wyoming has a 6% production or severance tax and a 4% reduced rate for the lower-producing wells.
• New Mexico has a severance tax at 3.75%.
• In addition to the oil and gas severance tax, they have an emergency school tax that also includes reduced

Keywords: 908, all

Summary: The committee met to continue its tax reform and relief study agenda, approved the December 3, 2025 minutes, and announced a new subcommittee to examine property tax statement issues with counties, auditors, and the tax office. Representative Headland was named chair, Senator Rummel vice chair, and Representatives Dressler and Dr. Dr. and Senator Patton were also assigned. The chair noted the group may need an additional meeting and thanked staff and attendees. A major portion of the meeting focused on economic development incentives. The Department of Commerce presented on the Renaissance Zone program and TIF districts, describing Renaissance Zones as locally tailored tools that combine local property tax relief with state income tax incentives. Commerce said the program has supported thousands of projects since 1999 and cited examples from Beach and Mandan showing increases in property and taxable value, business retention, housing, and downtown revitalization. Committee members raised concerns that smaller rural communities often lack the staff and expertise to apply, and Commerce said it provides outreach through conferences, office hours, and one-on-one assistance. League of Cities and local officials from Bismarck and Ellendale echoed the capacity issue, discussed how the programs have worked in their communities, and suggested possible reforms or more targeted support for small towns. Ellendale’s mayor also described two TIF districts, one for industrial infrastructure in Oaks and one for housing infrastructure tied to a data center project in Ellendale. The committee then turned to stripper oil taxation. The Tax Department gave a comparison of oil and gas tax structures in selected states, noting that most have some form of stripper or marginal well provision, while Alaska does not appear to have a specific stripper-well exemption. Members asked for more detail on definitions and North Dakota’s annual adjusted rate. The Department of Mineral Resources followed with a detailed presentation on North Dakota stripper wells, explaining the statutory thresholds, the 12-consecutive-month production test, and the fact that once a well qualifies it remains on stripper status even if production later rises. DMR said about 11,332 stripper wells are active, representing roughly 54% of wells and about 16% of state production, and emphasized that stripper status can extend well life, preserve tax revenue, and reduce orphaned wells. Committee members and industry witnesses discussed refracs, the economics of keeping marginal wells active, and the competitive disadvantage created by North Dakota’s oil price discount. No votes were taken on these informational items.

Transcript Highlights:

• real tax reform.
• tax it is.
• So this is only direct energy revenues, that's royalties and severance taxes.
• property tax.
• Um, the, the tax.

Committee: House Revenue Stabilization & Tax Policy Committee

Transcript Highlights:

• taxes.
• taxes.
• Several counties, including mine, have already implemented a senior tax freeze, and language from Senate
• several misinformation and several misguidance.
• several misinformation and several misguidance.

Committee: House Local Government, Elections and Pensions

Summary: The Local Government Committee first met in executive session and voted do pass on two House committee substitutes: House Bills 3283 and 3306 passed 11-1, and House Bills 1728, 2161, and 1830 passed 12-1. The committee then moved into public hearings. Senate Substitute for Senate Bill 914, dealing with septic system regulation, was presented as a measure to replace percolation testing with soil morphology testing as the baseline standard and to address a permit fee issue. The sponsor and supporters argued the bill would improve accuracy, consumer protection, and local public health administration; one witness noted the continuing-education language already exists in regulation and pointed out a minor wording change in the substitute. No opposition testified. House Bill 3467, sponsored by Representative Houseman, would allow county developmental disability boards to seek voter approval for a sales tax of up to one-half of 1% if property tax revenue is reduced or eliminated. The sponsor and multiple witnesses from county disability boards, sheltered workshops, and related associations said the bill was intended as a safeguard to preserve services, transportation, employment supports, and community-based care for people with developmental disabilities. Some members raised concerns about shifting from property tax to sales tax and the burden on low-income taxpayers, while others supported the measure as a revenue-diversification tool. No vote was taken. House Bill 312, relating to county treasurer duties and bank signature authority, drew testimony from the sponsor, county treasurers, auditors, and association representatives. Supporters said the bill clarifies that the county treasurer should have sole authority over county funds and reflects current practice, while also noting a forthcoming amendment to address what happens when a treasurer is absent. Some witnesses asked for stronger safeguards, including a bonded backup designee and clearer succession procedures, and one witness urged updating surety-bond requirements. The hearing closed with no opposition testimony and no committee action taken.

Transcript Highlights:

• That we have to fund through either gross receipts tax, property tax, or some other revenue source for
• The largest revenue distribution is the gasoline tax, followed by our weight distance tax, which brings
• Projects were done, several of them.
• To lowering taxes, not the gas tax, of course, was a huge bonding bill, upwards of a billion dollars.
• Gas tax. It's a closed system.

Transcript Highlights:

• The first page here covers the largest funds: the Land Grant Permanent Fund, Severance Tax.
• This has been providing a drag on the performance of the Severance Tax Permanent Fund versus the Land
• For example, we are required to provide 2% of the year-end value of the Severance Tax Permanent Fund
• Severance taxes and rents and royalties represented about 23%.
• So essentially, the Severance Tax Permanent Fund is getting half of the total.

Committee: House Investments & Pensions Oversight Committee

Transcript Highlights:

• Where I would nudge back on what you just said, Senator, is that the timber tax is in fact on severed
• But if we're also taxed on the carbon as a yield tax or severance tax, we're going to pay double on that
• But if we're also taxed on the carbon as a yield tax or severance tax, we're going to pay double on that
• on the carbon as a yield tax taxed on the carbon as a yield tax or<02:19:36.479><c> severance</c><02
• <02:19:37.679><c> pay</c> or severance tax, we're going to pay or severance tax, we're going to pay double

Committee: Senate Energy and Natural Resources

Keywords: 1191, senate, all