Transcript Highlights:

• RENTAL PROPERTY AND GIVE THEM THE TAX BENEFIT AND THEY SEE THE TAX BENEFIT HOPEFULLY THEY PASS ON THOSE
• BUT THIS IS A TAX SHIFT TO THIS AND IF WE INCLUDE RENTED PROPERTIES IT IS A TAX SHIFT TO THE BUSINESSES
• AND FINANCE AND TAX I'M SORRY.
• THIS WOULD APPLY TO TOURIST DEVELOPMENT TAXES AND LOCAL OPTION TAXES EXCEPT FOR THE TAXES HAVE BEEN PLEDGED
• OF THE LOCAL OPTION TAXES.

Transcript Highlights:

• The governor did not include tax conformity in the bill.
• The governor did not include tax conformity in the bill, in his budget.
• policy and where sales taxes are being spent, right?
• I started talking about sales tax distributions earlier.
• district property tax relief.

Committee: Senate Health and Welfare

Transcript Highlights:

• is a tax credit scholarship program.
• Eighteen states have ESAs, eighteen states also have tax credit scholarships, three states have tax credit
• Very similar to tax credit scholarship programs, tax credit ESA programs involve scholarship granting
• Eleven states have tax credits and deductions. Minnesota has a tax credit and deduction.
• In terms of tax credits themselves, five states have refundable tax credits, such that an individual's

Transcript Highlights:

• </c> additional taxes on them this year. additional taxes on them this year. really<00:01:11.280><c>
• </c> record surplus that was spent and taxes record surplus that was spent and taxes and<00:02:43.360
• </c> taxes.
• And we made sure that uh taxes taxes.
• I know that's not a tax on cannabis?

Transcript Highlights:

• </c><00:02:26.239><c> Exemp</c> File 39, Long-Term Homeowner Tax Exemp File 39, Long-Term Homeowner Tax
• > one</c> sales and use tax statutes into one sales and use tax statutes into one chapter.<00:03:43.120
• </c> legislature that only included sales tax legislature that only included sales tax statutes<00:05
• ,</c> it's sales tax, it applies to use tax, it's sales tax, it applies to use tax, everything's<00:05
• statute or, sorry, in the use tax statutes that's now being put into the sales tax statutes.

Bills: SF0079 , SF0080 , SF0039

Committee: House Revenue

Transcript Highlights:

• , there's personal income tax increases, and there's corporate income tax increases.
• Notice I said corporate income tax.
• It's only the corporate income tax.
• , and new corporate new sales taxes, and new corporate income<00:13:51.960><c> tax</c><00:13:52.320><
• </c> income tax that's part of the incentive. income tax that's part of the incentive.

Summary: The speaker outlined Kentucky’s economic development strategy and how the cabinet evaluates and awards incentives. He emphasized using national benchmarks such as Site Selection and Area Development magazines, focusing on real data, competitiveness, and performance-based incentives. He said the state is performing well nationally in investment rankings, and credited the legislature with providing tools that help attract and retain jobs, especially through speed to market, site readiness, transportation, and workforce coordination. A major portion of the remarks described the “anatomy” of an incentive package: first improving sites and infrastructure such as water, sewer, roads, and rail spurs; then using sales tax benefits for construction materials and equipment; then training support through the Bluegrass State Skills Corporation; and finally the Kentucky Business Incentive (KBI) program, which reimburses qualifying expenses from incremental tax revenue. He said incentives are negotiated, data-driven, and targeted toward companies with strong wage levels, training plans, growth potential, and, in some cases, agricultural benefits or industry leadership. He also noted special treatment for heritage communities and said the state has expanded KBI beyond heavy manufacturing to include R&D, headquarters, and service businesses. The speaker also described compliance and oversight. Incentive agreements are written with job, wage, investment, and community-benefit terms, and companies must file regular reports and invoices. Cash incentives can be clawed back if commitments are not met, while tax credits are tied to actual investment and job creation. He said the Revenue Cabinet and Environment and Energy Cabinet play important monitoring roles, and that projects go through application review and preliminary approval by the Kentucky Economic Development Finance Authority before final approval and payment. He closed by thanking legislators for their support and for allowing more flexible, capped, and data-driven incentive tools.

Transcript Highlights:

• of her employment taxes and her enterprise taxes.
• any state tax, which includes all of the excise taxes... ...sales tax?
• the local sales taxes in Illinois and the regional sales taxes.
• tax yeah it's any state tax which includes all of the excise taxes in the state of Illinois and all
• We've got the state sales tax and we've got a local option sales tax on meals.

Summary: The Special Commission on the future of payments and sales transactions by credit card heard extensive testimony from credit union, banking, retail, restaurant, and payments-industry representatives about proposals to limit interchange fees, especially on the tax and tip portions of transactions. Several witnesses opposed state-level restrictions, arguing they would create a patchwork of rules, burden state-chartered institutions, raise compliance complexity, and ultimately reduce resources for fraud prevention, cybersecurity, rewards, and access to credit. Others, including retail and merchant advocates, said swipe fees are a significant and growing cost for small businesses and that states should consider reforms such as limiting fees on taxes and tips, allowing surcharging, improving transparency in merchant contracts, and studying collection costs more closely. Witnesses also discussed recent legal and regulatory developments, including Illinois’s interchange-fee law, OCC and NCUA interim rules, and the ongoing Visa/Mastercard antitrust settlement. Industry representatives said the Illinois law has been delayed and is likely preempted for most transactions, while merchant advocates argued the state efforts and court rulings show that networks and banks do not set fees competitively. The proposed antitrust settlement was described by some as a meaningful but limited merchant victory, with temporary fee reductions and expanded surcharge/steering rights, while others said it still falls short of structural reform. The commission members pressed witnesses on the practical effects of fees, the cost of cash, whether merchants can pass costs through, and whether small businesses are actually seeing benefits from the current system. Members repeatedly emphasized the need for a fair middle ground that protects both small businesses and the payment system. No substantive votes or policy actions were taken beyond accepting testimony, and the meeting ended with adjournment after all scheduled witnesses had spoken.

Transcript Highlights:

• They proposed 2% tax cap. local level. They proposed 2% tax cap.
• </c> there's no tax cap. There's no tax cap. there's no tax cap. There's no tax cap.
• Do something about property<00:28:03.120><c> taxes.</c> property taxes. property taxes.
• </c> tax cap bills are? tax cap bills are?
• Um, have the 13 communities with tax caps experienced property tax relief?

Committee: House Election Law

Transcript Highlights:

• This will bring new products under the cannabis excise tax and will likely expand tax revenue.
• 25% excise tax increase.
• this tax.
• the fees, the city taxes, and the state taxes prove untenable.
• And if we continue to raise the tax, we don't allow the industry to... ...to raise the tax.

Summary: The committee heard a long agenda of bills, with most measures drawing support from industry, professional, local government, and advocacy witnesses, and several receiving committee amendments before moving forward. AB 8 on hemp and cannabis drew the most extensive debate: supporters said it would close loopholes around intoxicating hemp products, strengthen enforcement, and bring THC products into the regulated cannabis supply chain; opponents, including small cannabis farmers and environmental groups, warned it could undermine Proposition 64’s closed-loop system, harm California cultivators, and reduce tax revenues for youth, environmental, and law enforcement programs. The author said the bill was intended to protect consumers and children and to work further with stakeholders. AB 476 on copper theft was presented as a public safety and infrastructure bill to tighten reporting, documentation, and penalties for scrap metal theft; supporters from cities, utilities, broadband, and recycling-related groups described major losses and outages from copper theft, and the remaining opposition moved to neutral after amendments, with the bill advancing with committee support. The committee also heard AB 985, which would allow nationally certified anesthesiologist assistants to practice under direct supervision of licensed anesthesiologists to address anesthesia workforce shortages. Supporters, including the California Society of Anesthesiologists, medical groups, students, and patients, said it would expand access and bring California in line with other states; nurse anesthesiology groups expressed concerns and sought further clarification, but there was no formal opposition at the hearing. AB 506, aimed at online pet sales, would void contracts that fail to disclose an animal’s origin or veterinary records or that require non-refundable deposits; animal welfare groups said it would curb puppy mill pipelines and deceptive online sales, and there was no opposition. AB 876, on certified registered nurse anesthetists, generated the sharpest health care policy dispute: supporters said it would codify existing practice and clarify CRNA duties, while physicians and medical associations argued it would expand scope too far and reduce patient safety. After a roll call, AB 876 passed the committee 9-0, as amended, to Appropriations. Other bills advanced with broad support after amendments. AB 432, the Menopause Equity Act, would require continuing medical education on menopause-related care for certain physicians; the author and medical experts said the bill addresses widespread gaps in menopause treatment and research, while CMA and ACOG opposed the mandate as an inappropriate CME requirement, though they agreed the underlying problem is real. The bill passed on call, as amended, to Health. AB 759 would allow eligible architectural candidates to use the title “architect in training” to encourage completion of licensure and improve diversity in the profession; it passed unanimously, as amended, to Appropriations. AB 967 would create an optional expedited licensure fee for out-of-state physicians to reduce delays in bringing doctors into California’s workforce; supporters said it would help address shortages and improve patient access, and the bill was presented with support from medical stakeholders.

Transcript Highlights:

• Just to add to that, sales tax is really known as gross receipts tax.
• That would be income tax.
• we think about if we don't give you the authority to tax, don't tax.
• or use tax.
• The response was that it would not be subject to sales tax or use tax, and that if the vendor charges

Committee: All JBC-SPECIAL LANGUAGE

Transcript Highlights:

• The three tax credits are a child care contribution tax credit, an employer-provided child care assistance
• tax credit, and a child care provider tax credit.
• they do not have a tax liability.
• This is a 30% tax credit.
• They're pre-tax accounts.

Committee: House Economic Development

Transcript Highlights:

• Because basically what we're doing is this is a tax. Is that correct? No, this is not a tax.
• of every income tax credit that they can.
• income tax.
• I see your point, but again, most people are using some form of tax software to file their taxes, whether
• , all the tax credits that they can.

Bills: SB1936 , SB1612 , SB1543 , SB1260 , SB1988 , SB1859 , SB2041 , SB1257

Committee: Senate Public Safety

Summary: The Public Safety Committee took up several criminal justice and public safety measures. Senate Bill 1936, as amended, increased penalties for impersonating law enforcement from a misdemeanor to a felony and expanded seizure provisions; amendments added federal law enforcement agents and state troopers to the covered officers, and the bill passed unanimously. Senate Bill 1612, requested by Tulsa police, would require limited reporting and sharing of certain injury-related information and hospital video/photo evidence with law enforcement to aid violent-crime investigations; members raised HIPAA, scope, and criminalization concerns, but the bill passed 5-2. Senate Bill 1543 would aggregate multiple DUI offenses within one year into a single felony case; after questions about sentencing, municipal charges, and deterrence, it passed 6-2. Senate Bill 1260 would require child sex traffickers and human traffickers to serve 100% of their sentences without parole or earned credits, and it passed 6-2. The committee also considered Senate Bill 1988, which would increase wire-transfer fees on funds sent outside the United States and restore an income-tax credit for Oklahoma filers; members questioned whether it functioned as a tax, its impact on lower-income senders and service members, and its connection to drug trafficking. The bill failed on a 4-4 vote. Senate Bill 1859, creating an OSBI cybercrime and fraud unit with an estimated $3 million fiscal impact, passed unanimously after testimony that cyber and cryptocurrency fraud are growing and often harm elderly victims. Senate Bill 2041 would make a third possession offense for methamphetamine, fentanyl, or cocaine a felony, with supporters saying it would push offenders toward drug court and opponents warning it would increase incarceration; it passed 6-2. Finally, Senate Bill 1257 would classify THC as a Schedule I drug to align with federal law and close trafficking loopholes, and it passed unanimously. Senate Bill 1584 was laid over at the author’s request.

Transcript Highlights:

• By tying the tax credit to both redevelopment and appropriate, By tying the tax credit to both redevelopment
• And I think, you know, when I'm looking at the tax credit, and as we saw in the previous tax credit as
• And so a tax credit like this, which is... ...the acquisition of this, and so a tax credit like this,
• tax committee, I was close enough to ask a tax question.
• And here's a tax credit.

Committee: House House Commerce & Economic Development Committee

Transcript Highlights:

• increases, there's personal income tax increases, and there's corporate income tax increases.
• </c> But again, uh the pay as you go tax But again, uh the pay as you go tax credit<00:21:21.919><c>
• </c> to them about suspension of those tax to them about suspension of those tax credit<00:22:17.200>
• </c><00:25:32.320><c> I</c> lowering the personal income tax. I lowering the personal income tax.
• </c> there it's an automatic sales tax there it's an automatic sales tax exemption<00:37:33.920><c> for

Summary: The subcommittee met with Secretary Jeff Null and General Counsel Matt Wing of the Cabinet for Economic Development for an overview of the cabinet’s main economic development tools, strategy, and compliance practices. Null said the cabinet uses a data-driven approach focused on competitiveness, site readiness, wages, workforce training, and long-term assets such as roads, rail spurs, water, and sewer improvements. He emphasized that the cabinet tries to balance attracting new employers with supporting existing businesses, and said compliance is a core value of the agency. Null walked members through several programs, including the closing fund, Kentucky Business Incentive (KBI), Bluegrass State Skills Corporation training support, and the KIA sales-tax refund tool for construction materials and equipment. He said the closing fund has received $80 million over two years for projects generally involving at least $10 million in investment, though some flexibility exists. He also explained that Bluegrass State Skills funding is typically about $2,000 to $3,000 per job and can be used flexibly for training, including sending Kentucky workers to be trained elsewhere or paying trainers to come to Kentucky. He described KBI as a pay-as-you-go, incremental tax credit tied to actual jobs and investment, and said the legislature’s tiered refundable credit structure allows more targeted use of incentives in heritage and non-heritage counties. A substantial portion of the presentation focused on compliance and monitoring. Null said incentive agreements are written with commercial terms and spell out jobs, investment, wages, and training commitments. The cabinet requires regular reporting, invoices, and sampling, and can use clawbacks or suspend benefits if companies fail to meet obligations or lose required environmental permits. He said the Kentucky Economic Development Finance Authority reviews incentive applications in public meetings and often requires company representatives to answer questions before preliminary approval is granted. No votes or formal actions were taken during the meeting.

Transcript Highlights:

• Because no income tax does not mean no taxes, Mr. Speaker. It means higher sales taxes.
• Again, no income taxes does not mean tax-free.
• The Tax Foundation concludes that income taxes are less pro-growth than consumption taxes.
• The Tax Foundation concludes that income taxes are less pro-growth than consumption taxes because they
• Don't tax my product. Don't tax my service.'

Transcript Highlights:

• Major revenues into the access fund are the 1.8% provider tax and the 1% gross premium tax.
• , with provider tax revenue up offset by lower growth in the gross premium tax.
• The solid lines are the February forecast for provider tax and gross premium tax revenue.
• So, nonprofits pay a 1% tax in the access fund; for-profits pay a 2% tax in the general fund.
• Um so currently regulations taxes.

Committee: Senate Health and Human Services

Transcript Highlights:

• c> be supported by a tax base and a tax be supported by a tax base and a tax system<00:49:14.040><c>
• </c> tax base. tax base.
• </c> as well as a fairer tax structure. as well as a fairer tax structure.
• Taxes. Taxes.
• </c> of local property taxes. of local property taxes.

Transcript Highlights:

• Then they pay an assessment, and there is a tax credit that goes back on the tax liability they would
• credit against state tax liability.
• tax credit on an individual tax return for something someone did or paid for and then gets a tax credit
• </c> then then it comes back as a tax credit. then then it comes back as a tax credit.
• </c> No different than we would offer a tax No different than we would offer a tax credit<00:25:34.080

Transcript Highlights:

• tax for transportation.
• </c> the amount to the highway user tax the amount to the highway user tax distribution<00:19:52.480>
• </c> charge related to um kilowatt hour tax charge related to um kilowatt hour tax on<00:20:24.080><c
• Years ago, you gave all the counties both a wheelage tax and a half-cent sales tax.
• </c> offer EV chargers would not pay the tax. offer EV chargers would not pay the tax.

Transcript Highlights:

• So we will be happy to take their sales tax.
• So the point-of-sale tax collection, all that.
• I think the tax credit's a 20% tax credit on investments over $5 million and less than $15 million.
• can only earn the tax credit if they sell.
• So, yeah, not a huge fan of tax... Thank you, Mr. Chair.

Committee: House Commerce, Consumer Protection, Energy and the Environment

Summary: The Commerce Committee met with quorum and first took up several bills in executive session. It adopted a House committee substitute for House Bill 2080 and then voted the substitute do pass on a 6-2 roll call. The committee also voted House Bill 1745 do pass by 6-2 and House Bill 3230 do pass unanimously, 8-0. HB 2080 was described as a proposal related to state investment in cryptocurrency, including Bitcoin, other crypto and stablecoins, with a trigger tied to constitutional changes and language allowing staking of assets. In public hearing, House Bill 3490, sponsored by Rep. Mike Jones, would modify Missouri’s Local Historic Preservation Act so that in certain large cities, property owned by public or private colleges and universities could not be designated as historic landmarks by local commissions. Supporters argued the bill would protect property rights and allow universities to develop campus property, while opponents and some members said it appeared aimed at a specific Kansas City dispute and could be overbroad or an overreach into local historic preservation. No one testified in formal support or opposition, and the hearing closed without action. The committee then heard House Bill 3316, a Department of Revenue cleanup bill sponsored by Rep. Jeff Knight. The department said it would simplify vehicle registration and titling, including flat registration fees instead of horsepower-based fees, changes to alternative fuel decals, disabled placards, Real ID document retention, out-of-state vehicle tax collection, legal-name titling, higher late-registration penalties, and ending even-odd year registration. Members asked about water-damaged titles, dealer plate thresholds, emissions inspections, and temporary tags; the department and sponsor said they were open to amendments on some points. Copart testified in informational support, asking that resale exemptions remain intact. The committee then heard House Bill 3027, also by Rep. Knight, which would create tax incentives for companies producing critical minerals, materials, and certain pharmaceuticals in Missouri. The sponsor and supporters said the bill was aimed at reducing dependence on foreign supply chains and encouraging mining and processing in-state; a chemical manufacturer suggested tightening the bill by making credits nontransferable and tying them to actual production and profitability, and the Missouri Chamber supported the concept. After the hearings, the committee adjourned.