Transcript Highlights:

• </c> offers new tax subsidies to big oil. offers new tax subsidies to big oil.
• </c> Affordable Care Act tax credits expire. Affordable Care Act tax credits expire.
• deduction and lower tax rates, making the 2017 tax cuts permanent.
• No tax on tips, no tax on overtime, no tax on Social Security.
• It's almost all Social Security, or others won't pay any tax on that. No tax on tips.

Transcript Highlights:

• Now, the sales tax portion is not federally tax deductible, so you're going to pay a tax on that and
• Now, the sales tax portion is not federally tax deductible, so you're going to pay a tax on that, and
• And so that's why I got called in because I do tax policy.
• As you may know, federal tax law allows tax filers to deduct either their state income and property taxes
• or their state sales taxes.

Summary: The Senate Transportation Committee heard several bills focused on transportation planning, freight, emissions, and vehicle regulations. SB 1087 by Senator Cabaldon would modernize SB 375 by extending regional plan cycles from four to eight years, improving coordination with CARB and other state agencies, and aligning funding and guidelines more closely with climate and mobility goals. Supporters, including SCAG, MTC/ABAG, other MPOs, cities, and environmental groups, said the current process is costly and inefficient; opponents from clean air and housing groups warned it could weaken accountability for climate targets and shift focus away from vehicle miles traveled reductions. The committee also heard SB 1315, which would require manufacturers to report software updates for semi-autonomous vehicle features to the Insurance Commissioner so the state can better track safety and policy impacts; there was no opposition testimony. The committee also considered SB 1275 by Senator McNerney, a tax proposal to replace the state sales tax on motor vehicles with a deductible vehicle license fee to reduce Californians’ federal tax burden. A Legislative Analyst’s Office witness explained the tax-policy mechanics and estimated savings, and the bill drew support from the author and no formal opposition. SB 1287 by Senator Hurtado would create a targeted tax credit for short-line railroad infrastructure investment; supporters said it would improve freight efficiency, reduce truck traffic and emissions, and help rural and agricultural economies, with no opposition testimony. SB 1064 by Senator Daly would reduce the frequency of clean truck checks for very low-mileage heavy-duty and off-road vehicles; supporters called it a practical affordability measure, while clean air advocates said they wanted to see the amended text and CARB analysis before taking a final position. The committee also heard SB 1375 by Senator Cortese, which would limit duplicative environmental review for certain transit and rail projects that have already undergone extensive prior review; supporters said it would save time and money while preserving other environmental protections, and there was no opposition. SB 1392, also by Senator Cortese, would expand the smog-check exemption for certain older collector vehicles used mainly for shows, parades, and historic display; classic-car and lowrider supporters said the bill protects automotive heritage and reflects limited actual use, while air-quality groups argued it would increase emissions and weaken smog-check accountability. After testimony and committee discussion, the committee took roll-call votes and advanced all measures, including consent item SB 1213, to the Senate Appropriations Committee, with SB 1392 receiving the most divided vote.

Transcript Highlights:

• for income tax, is a good idea.
• </c> administrative costs I guess for do tax. administrative costs I guess for do tax.
• </c> taxes levied by a political subdivision. taxes levied by a political subdivision.
• It's just directing future tax revenue from an area to pay off the bond. No tax increase.
• It's just directing future tax revenue from an area to pay off the bond. No tax increase.

Bills: SB2190 , SB2338 , SB2424 , SB2356 , SB2981 , SB3028 , SB3187 , SB2378 , SB2398 , SB2192 , SB2155 , SB3219 , SB3218

Committee: House Housing

Summary: The House Housing Committee heard testimony on a series of housing-related Senate bills. SB 2190 SD2 on inclusionary zoning drew support from HHFDC, Hawaii YIMBY, Grassroot Institute, Housing Hawaii’s Future, and Hako Seed Center, with opposition from OHA and Aloha Independent Living Hawaii. SB 2338 SD1, dealing with housing agency personnel authority, received comments from the Attorney General cautioning that the bill should be clarified to avoid conflicts with civil service and collective bargaining laws and recommending removal of a provision limiting employment contracts; HHFDC said its comments addressed those concerns and supported the measure. SB 2424 SD1, concerning HHFDC, received broad support from housing, business, and community groups, with one opposition. Testimony focused on changing the definition of “qualified resident” so people who already own an HHFDC-assisted unit could later purchase another if their housing needs change; HHFDC said the current rule forces people to sell before buying again and that the bill would help people move up the housing ladder and encourage more housing development. SB 2356 on parking also drew broad support from state agencies, housing advocates, business groups, and local officials, with Unite Here Local 5 in opposition. SB 2981 on land use had strong support from many organizations and 67 individuals, with Unite Here Local 5 opposing. SB 3028 SD2 on property conveyance generated the most detailed policy debate. Supporters, including Catholic Charities Hawaii, Hawaii Children’s Action Network, Indivisible Hawaii, and others, backed restructuring the conveyance tax into a marginal rate system and urged changes to revenue allocations, including dedicated funding for homeless services, DHHL, and the rental housing revolving fund. The Tax Foundation of Hawaii supported the marginal-rate concept but opposed dedicated special-fund allocations and criticized the bill’s blank sections. Committee members questioned the historical purpose of the conveyance tax, and the Tax Foundation explained it was originally a modest tax tied to property-value tracking when the state still ran the property tax system. The committee also heard SB 3187 SD2 on off-site construction, SB 2378 SD2 on housing permitting, and SB 2398 SD2 on residential housing utilities. OPSD supported SB 3187 but said it preferred the House version and wanted clarification that off-site certification should apply to factories in Hawaii, not out of state, to avoid outsourcing labor; it also suggested starting with a small scope. SB 2378 SD2 drew support from engineering, housing, and labor groups, with testimony that the House version included needed fixes to make the program insurable. On SB 2398 SD2, the Board of Water Supply opposed the bill, saying it could require disclosure of sensitive infrastructure information beyond ordinary water-availability assessments and raise critical-infrastructure and cybersecurity concerns; developers and housing groups supported the measure. No votes or final actions were taken in the portion of the hearing provided.

Transcript Highlights:

• , use tax audit.
• and use tax.
• It has to do with taxes, business taxes. It has to do with postmark dates.
• Postmarks mean a lot to us, not only on sales tax, but income tax.
• , fees, and fuel tax.

Committee: House Budget

Transcript Highlights:

• through the low-income category of the disabled veterans' property tax exemption.
• States that do not tax military retirement pay. Yes, we've had some movement.
• Danny Kando Kaiser here on behalf of the California Tax Reform Association.
• stable and fair tax base for the state and local government.
• and sales taxes and all the other things that will not only replace this tax benefit but beyond that

Summary: The Assembly Committee on Military and Veteran Affairs heard several veteran-focused measures, with extensive testimony in support from veterans’ organizations and individual veterans. SB 888 would exclude VA service-connected disability compensation from household income calculations for the low-income disabled veterans’ property tax exemption, addressing a situation where disability benefits can disqualify veterans from tax relief. SB 1354 would prohibit military personnel from another state, territory, or district from entering California to perform military or law enforcement functions without the Governor’s express permission, while preserving Title X activity, training, and mutual aid arrangements. SB 623 would place the Veterans Bond Act of 2026 on the ballot to authorize a $1.25 billion general obligation bond for the CalVet Home Loan Program, which supporters said is nearing depletion of bond authority and remains a critical path to homeownership for veterans and military families. SB 1407 would increase the state income tax exclusion for military retirement pay and surviving spouse benefits to the first $40,000, subject to income caps, as a retention measure to keep military retirees in California. Supporters for the bills emphasized housing stability, affordability, retention of veterans in California, and the economic benefits of keeping military retirees and their income in the state. SB 888 and SB 623 drew broad support from veterans’ groups, county veterans service officers, and related organizations, with no opposition testimony. SB 1354 also received support from veterans’ advocates, while committee members sought clarification on training, mutual aid, and the bill’s scope, and the author agreed to work on amendments. SB 1407 drew strong support from veterans and military organizations, but also formal opposition from the California Tax Reform Association, which argued the state already provides generous veteran benefits and that the tax break would be unfair to other public servants. The committee voted to advance all four measures. SB 888 was approved and re-referred to Revenue and Taxation; SB 1354 was approved as amended and re-referred to Public Safety; SB 623 was approved as amended, given urgency, and re-referred to Housing and Community Development; and SB 1407 was approved and re-referred to Revenue and Taxation. The consent item, SCR 143, was adopted unanimously. After the initial votes, the committee later took add-on votes to confirm passage of SB 888 and SB 1354, and the meeting adjourned.

Transcript Highlights:

• that the taxing districts got not only their share of the taxes due, but also the fees and interest that
• Chairman, I'm Alan Dornfest, Property Tax Policy Bureau Chief, with the Property Tax Division of the
• Idaho State Tax Commission.
• Chairman, I'm Alan Dornfest, Property Tax Policy Bureau Chief, with the Property Tax Division of the
• Idaho State Tax Commission.

Committee: House Revenue and Taxation

Transcript Highlights:

• In Colorado, consumers could pay nearly 15% in taxes on a turkey sandwich.
• So I had to look around, and the idea is, you folks had the gas tax.
• You had a tax collection item on one end of the state, and you had a tax collection item on the other
• And all of those potential taxes were going south to Connecticut in that area.
• The casino would generate $75 million in taxes.

Committee: Joint Joint Committee on Transportation

Summary: The Joint Committee on Transportation heard testimony on a range of bills focused on transportation funding, governance, and equity. Supporters backed proposals to create a North Central Massachusetts intercity passenger rail fund tied to a possible new gaming license (H. 3680/S. 2363), local parking assessments (H. 3756), third-party delivery fees (S. 2356/H. 3774), broader roadway pricing and congestion management measures (S. 2353/S. 2354), tolling equity and regional transit authority advisory boards (S. 2400/S. 2401), and Steamship Authority oversight reforms including board term limits (S. 2395). Testimony in favor emphasized new dedicated revenue sources, commuter rail expansion, regional equity, improved oversight, and better transit access for riders and communities that rely on public transportation. There was also testimony in opposition to the third-party delivery fee bills from Chamber of Progress, which argued the fee would raise costs for consumers, small businesses, and delivery workers, could reduce demand and jobs, and might not achieve the intended environmental benefits. Associated Builders and Contractors of Massachusetts opposed H. 3633, a transit expansion, electrification, and resiliency bill, specifically objecting to its mandatory project labor agreement requirement and saying it would limit competition and disadvantage non-union contractors and workers. Several witnesses spoke in favor of the Steamship Authority bill, saying term limits would improve transparency, accountability, and board turnover. The committee also heard detailed support for the North Central rail proposal from a legislator, the North Central Massachusetts Chamber of Commerce, and a transportation advocate, who described the bill as a way to generate long-term bonded revenue for rail infrastructure. After testimony concluded and no questions remained, the chairs entertained and received a motion to adjourn.

Transcript Highlights:

• And they're taxed somewhere between 13% and 20%.
• I don't think this is normal income taxes either.
• I think casinos operate by vastly different taxing systems than we do. Income taxes either.
• That's because, as Revenue Tax Chair, we all love tax cuts. We all want to do those.
• That's because, as Revenue Tax Chair, we all love tax cuts. We all want to do those.

Committee: All JBC-SPECIAL LANGUAGE

Transcript Highlights:

• and their children, particularly regarding the retention of the property's Proposition 13-protected tax
• other necessary items done under the one-year timeline and have lost their Proposition 13-protected tax
• As amended, SB 347 will reduce the state annual tax from $800 to...
• This bill will help California businesses by reducing the tax...
• As the senator noted, Senate Bill 762 does not impose a tax increase.

Committee: Senate Revenue and Taxation

Summary: The committee heard several tax and local revenue measures. SB 288, by Senator Seyarto, would clarify that for inherited homes going through probate, the Proposition 19 one-year deadline to move in and claim the homeowner exemption begins when the property is legally declared to belong to the heir, rather than during probate. The author accepted committee amendments; Howard Jarvis Taxpayers Association supported the bill, and it passed 4-0 to Appropriations. SB 347, by Senator Choi, would reduce the state annual minimum tax from $800 to $600 for LLCs, LLPs, limited partnerships, S corporations, and C corporations. The bill was supported as a small-business tax reduction and passed 5-0 to Appropriations. The committee also considered two veterans property tax measures. SCA 4, by Senator Archuleta, would allow eligible veterans to stack the homeowners exemption with the veterans’ or disabled veterans’ exemption and remove outdated property-value limits in the constitutional veterans’ exemption. Testimony from veteran advocates and the Howard Jarvis Taxpayers Association supported the measure, and it was adopted 5-0 and referred to the Committee on Elections and Constitutional Amendments. SB 623, the companion statutory bill, would make conforming changes to implement SCA 4; it also drew support from veterans’ groups, the County of San Diego, and Howard Jarvis Taxpayers Association, and passed 5-0 to the Committee on Military and Veterans Affairs. SB 762, by Senator Archuleta, would authorize the city of Hercules to place before voters a local sales tax increase of up to 1% to help fund public safety, parks, infrastructure, and other services. Supporters described it as a narrowly tailored local control measure, while the committee noted it would let residents decide whether to tax themselves. The bill passed 4-1 to Local Government. SB 575 by Senator Laird was taken up on the consent calendar, the committee adopted technical amendments, and the consent calendar passed 5-0. The meeting then adjourned after all business was concluded.

Transcript Highlights:

• This is not a tax for the working family, our seniors, or our first-time homebuyers.
• The lesson is clear: graduated deed and transfer taxes do not collapse markets.
• This bill directly addresses these barriers by providing more robust tax incentives.
• We will transform... ...to local tax bases through increased property values.
• It levies an excise tax on those who don't own equal to or less than the amount.

Committee: Joint Joint Committee on Revenue

Summary: The Joint Committee on Revenue held a hearing on several housing-related bills, with chairs Adrienne Madaro and James Eldridge framing the discussion as part of the Legislature’s broader response to the state’s housing crisis and noting that many of the bills build on the 2024 Affordable Homes Act. The chairs reviewed hearing procedures, including the three-minute oral testimony limit, the option to submit written testimony, and the hybrid format. No votes were taken during the hearing. Testimony began with support for H. 3278, a bill to create a graduated deed excise tax for affordable housing. Representative Worel argued that higher-end real estate transactions should contribute more to fund affordable housing production, saying the measure would not burden working families and would help address racial inequities in homeownership and displacement. Representative Soder then supported H. 3247, which would promote redevelopment of abandoned buildings through expanded tax incentives for renovating vacant properties for sale or rent, arguing that it would bring blighted units back into use and generate future tax revenue. The committee also heard testimony on H. 3040/S. 1969, residential improvement or R-PACE legislation. Robert Giles of Home Run Financing and Nicole Steele of Amalgamated Bank described the program as a voluntary, assessment-based financing tool that could help homeowners pay for energy efficiency, resilience, and other major repairs without upfront costs, and said it could complement existing Mass Save programs while expanding access to more homeowners. In contrast, Judith Lieben of the Massachusetts Law Reform Institute opposed H. 3039/S. 1946, the Housing Development Incentive Program bill, arguing it would expand subsidies for market-rate and luxury housing in Gateway Cities instead of directing resources to low-income renters. Representative Hawkins also testified in support of H. 3121, which would end large investor control of homes in Massachusetts by imposing an excise tax on large owners of small residential properties and using the revenue for first-time homebuyer down payment assistance. After testimony and a few member questions, the chairs asked whether anyone else wished to testify and then adjourned the hearing.

Transcript Highlights:

• to the Alabama tax appeal to the tax to the Alabama tax appeal to the tax to the Alabama tax tribunal
• And you got property tax, you got lodging tax, you've got sales tax, and lodging tax, you've got sales
• tax, and lodging tax, you've got sales tax, and the main thing that I've got property the main thing
• sales tax that I've got tax and sales tax that I've got calculated out.
• That's sales tax and that is property tax that is property tax that is property tax combined.

Bills: SJR 39 , SJR 68 , SCR 29 , SCR 42 , SB 30 , SB 33 , SB 37 , SB 217 , SB 240 , SB 331 , SB 393 , SB 505 , SB 530 , SB 546 , SB 552 , SB 584 , SB 586 , SB 618 , SB 619 , SB 636 , SB 732 , SB 769 , SB 801 , SB 825 , SB 826 , SB 844 , SB 847 , SB 870 , SB 884 , SB 957 , SB 1065 , SB 1150 , SB 1184 , SB 1257 , SB 1261 , SB 1262 , SB 1299 , SB 1314 , SB 1325 , SB 1398 , SB 1413 , SB 1455 , SB 1539 , SB 1577 , SB 1583 , SB 1596 , SB 1620 , SB 1624 , SB 1642 , SB 1643 , SB 1667 , SB 1717 , SB 1727 , SB 1760 , SB 1789 , SB 1791 , SB 1804 , SB 1868 , SB 1870 , SB 1883 , SB 1901 , SB 1923 , SB 1924 , SB 1927 , SB 1951 , SB 1960 , SB 1962 , SB 1963 , SB 2010 , SB 2018 , SB 2023 , SB 2024 , SB 2037 , SB 2051 , SB 2052 , SB 2056 , SB 2066 , SB 2073 , SB 2127 , SB 2129 , SB 2161 , SB 2183 , SB 2185 , SB 2207 , SB 2252 , SB 2323 , SB 2332 , SB 2368 , SB 2405 , SB 2439 , SB 2626 , SB 2717 , SB 2743 , SB 2774 , SB 2949 , SB 1 , SJR 36 , SJR 50 , SJR 63 , SJR 68 , SCR 12 , SCR 39 , SCR 38 , SCR 37 , SCR 42 , SCR 29 , SB 2023 , SB 62 , SB 666 , SB 847 , SB 284 , SB 854 , SB 1073 , SB 810 , SB 1539 , SB 1505 , SB 583 , SB 957 , SB 1502 , SB 507 , SB 1026 , SB 1349 , SB 1433 , SB 1434 , SB 264 , SB 1364 , SB 1376 , SB 1585 , SB 1772 , SB 2016 , SB 1163 , SB 619 , SB 1122 , SB 1877 , SB 732 , SB 731 , SB 397 , SB 508 , SB 1436 , SB 287 , SB 2143 , SB 261 , SB 1247 , SB 1882 , SB 618 , SB 393 , SB 2243 , SB 1919 , SB 1791 , SB 651 , SB 826 , SB 1079 , SB 1243 , SB 1504 , SB 1851 , SB 1879 , SB 2237 , SB 1257 , SB 2034 , SB 1522 , SB 1151 , SB 596 , SB 1191 , SB 226 , SB 570 , SB 870 , SB 991 , SB 60 , SB 1401 , SB 1728 , SB 586 , SB 529 , SB 217 , SB 209 , SB 1923 , SB 1839 , SB 387 , SB 1874 , SB 1872 , SB 1873 , SB 1921 , SB 1883 , SB 1620 , SB 1838 , SB 2024 , SB 2429 , SB 1999 , SB 511 , SB 2309 , SB 2166 , SB 510 , SB 1860 , SB 1314 , SB 1398 , SB 855 , SB 2037 , SB 1759 , SB 1924 , SB 1818 , SB 1762 , SB 1968 , SB 1977 , SB 2077 , SB 2321 , SB 1662 , SB 1663 , SB 2124 , SB 2204 , SB 1855 , SB 863 , SB 2252 , SB 2253 , SB 825 , SB 1184 , SB 2018 , SB 2206 , SB 1901 , SB 2368 , SB 1963 , SB 1960 , SB 1643 , SB 1625 , SB 1299 , SB 841 , SB 668 , SB 584 , SB 231 , SB 1085 , SB 2431 , SB 2231 , SB 1490 , SB 530 , SB 1261 , SB 2180 , SB 1804 , SB 1937 , SB 1936 , SB 2569 , SB 1372 , SB 1868 , SB 2314 , SB 769 , SB 1409 , SB 434 , SB 1214 , SB 1951 , SB 2183 , SB 2046 , SB 1667 , SB 1870 , SB 1727 , SB 2405 , SB 2127 , SB 1975 , SB 1760 , SB 1734 , SB 1335 , SB 2066 , SB 2129 , SB 2246 , SB 2439 , SB 1624 , SB 1244 , SB 1468 , SB 2717 , SB 1612 , SB 1262 , SB 604 , SB 2395 , SB 2185 , SB 1832 , SB 1745 , SB 1746 , SB 2207 , SB 1784 , SB 1524 , SB 528 , SB 437 , SB 269 , SB 1137 , SB 968 , SB 636 , SB 747 , SB 1325 , SB 1789 , SB 1455 , SB 2056 , SB 1940 , SB 2052 , SB 2010 , SB 1579 , SB 2068 , SB 3034 , SB 844 , SB 1920 , SB 1558 , SB 1236 , SB 1044 , SB 884 , SB 463 , SB 331 , SB 227 , SB 240 , SB 517 , SB 1200 , SB 1410 , SB 1626 , SB 1845 , SB 1863 , SB 2216 , SB 2681 , SB 1717 , SB 2053 , SB 546 , SB 2141 , SB 2949 , SB 2323 , SB 2200 , SB 2332 , SB 2199 , SB 1642 , SB 1150 , SB 1757 , SB 2050 , SB 1138 , SB 2051 , SB 2626 , SB 2458 , SB 1864 , SB 2201 , SB 1862 , SB 1583 , SB 1055 , SB 2660 , SB 1898 , SB 2662 , SB 2161 , SB 2964 , SB 2881 , SB 1065 , SB 801 , SB 2743 , SB 2533 , SB 1413 , SB 2073 , SB 3014 , SB 3013 , SB 2774 , SB 2702 , SB 2629 , SB 2443 , SB 2349 , SB 2167 , SB 2145 , SB 2121 , SB 758 , SB 648 , SB 647 , SB 512 , SB 438 , SB 1721 , SB 2268 , SB 1495 , SB 2705 , SB 2366 , SB 1422 , SB 1369 , SB 1013 , SB 682 , SB 2692 , SB 2570 , SB 2797 , SB 2111 , SB 1896 , SB 1164 , SB 1020 , SB 663 , SB 2371 , SB 1152 , SB 2196 , SB 2383 , SB 2581 , SB 2798 , SB 330 , SB 646 , SB 843 , SB 1998 , SB 1418 , SB 2788 , SB 1169 , SB 2873 , SB 1754 , SB 1534 , SB 1718 , SB 2779 , SB 2004 , SB 1143 , SB 1756 , SB 912 , SB 2119 , SB 2032 , SB 527 , SB 1580 , SB 1952 , SB 2601 , HJR 4 , SJR 85 , SJR 84 , SCR 4 , SCR 18 , SCR 43 , SCR 46 , SB 2322 , SB 2448 , SB 1777 , SB 1283 , SB 407 , SB 2392 , SB 2076 , SB 2786 , SB 3031 , SB 2877 , SB 2876 , SB 2284 , SB 2225 , SB 1540 , SB 2920 , SB 2929 , SB 1395 , SB 1972 , SB 2540 , SB 1183 , SB 2742 , SB 2595 , SB 2217 , SB 2117 , SB 715 , SB 2330 , SB 1964 , SB 1383 , SB 500 , SB 1640 , SB 39 , SB 2001 , SB 2080 , SB 2722 , SB 506 , SB 2514 , SB 2623 , SB 2658 , SB 1574 , SB 2900 , SB 23 , SB 2753 , SB 2398 , SB 401 , SB 1241 , SB 2927 , SB 2173 , SB 2538 , SB 898 , SB 467 , SB 1449 , SB 2529 , SB 1531 , SB 2846 , SB 2476 , SB 2031 , SB 986 , SB 1181 , SB 2075 , SB 2154 , SB 2864 , SB 2 , SB 260 , SJR 68 , SB 217 , SB 331 , SB 530 , SB 546 , SB 586 , SB 1150 , SB 1184 , SB 1261 , SB 1398 , SB 1620 , SB 1923 , SB 1951 , SB 1960 , SB 2051 , SB 2129 , SB 2183 , SB 2185 , SB 2252 , SB 2368 , SB 2405 , SB 2949 , SB 825 , SB 1870 , SB 2010 , SR 434 , SB 3048 , SB 3049 , SB 3050 , SB 3051 , SB 3052 , SB 3053 , SB 3055 , SB 3048 , SB 3049 , SB 3050 , SB 3051 , SB 3052 , SB 3053 , SB 3055

Transcript Highlights:

• $563 on a gram of gold of sales tax, and $11.96 taxes on an ounce of silver.
• </c><00:09:05.279><c> wrongly</c> exists if you have a sales tax wrongly exists if you have a sales tax
• tax and $11.96<00:09:49.440><c> taxes</c><00:09:49.880><c> on</c><00:09:50.200><c> the</c><00:09:50.480
• , so that in itself increases the tax, both sales tax and all the local tourism taxes are added to that
• tax and all the local the tax both sales tax and all the local tourism<00:32:07.120><c> taxes</c><00:

Summary: The committee first took up House Bill 2, which would address the taxation of currency and bullion and was presented as a response to last session’s dispute over whether a line-item veto could be applied to a revenue measure. The sponsor said the bill, as amended by Committee Substitute 2, was largely technical but also made the tax exemption retroactive to August 1, 2024 while making the $1,000-per-day penalty prospective only. Members asked about fiscal impact, possible legal liability for executive branch officials, and whether the issue should instead be resolved by the courts. The sponsor argued the Constitution limits the governor’s line-item veto power to appropriations, not revenue bills, and said the bill would create a judicial remedy and refund process if the executive branch continued collecting the tax. The committee approved the committee substitute and then passed House Bill 2 by a vote of 19-1, with two members passing; the bill was reported favorably to the floor. During discussion, Representative Bojanowski voted no, saying he could not support removing taxes on gold bars while parents pay taxes on diapers. Representative Gentry passed, saying he supported the original intent but was not yet convinced and wanted more time to review the issue. The sponsor also clarified that any liability would be joint and several and could involve executive officials or their budgets if the tax collection continued despite the exemption. The committee then heard a discussion-only presentation on the Kentucky Exposition Center Redevelopment Plan Phase 2. Facility representatives described Phase 1 and the planned Phase 2 expansion, saying the center had record attendance and needed more space to remain competitive and meet client demand. They said Phase 1 was about 20% complete, with completion now expected in October 2026 and an opening target of December 31, 2026 after a short testing period. Phase 2 would follow, including demolition of the West Wing, utility work, and improvements to food service and circulation areas. They said the project would be funded without federal dollars and estimated that, once complete, it could generate about $683 million in annual economic impact, $302 million in state sales tax, and 850,000 room nights in Jefferson County.

Transcript Highlights:

• I know that the VFW in Bloomington struggles with taxes quite frequently.
• We have strongly supported tax relief.
• Meanwhile, I still have to pay 33% of my net receipt in taxes.
• </c><00:23:37.799><c> I</c> to pay 33% of my net receipt in taxes I to pay 33% of my net receipt in taxes
• </c><00:23:47.600><c> too</c> the highest in the nation taxes too the highest in the nation taxes too

Committee: House Veterans and Military Affairs Division

Transcript Highlights:

• taxing district.
• It seemed that it's maybe problematic for the taxing district not to have any tax revenue.
• on that property tax statement.
• One is a tax advantage. So as a rural tax or a township person, I pay less in my...”
• income taxes.

Summary: The committee opened with roll call and a review of special-session procedure: bills would be heard in filing order, with related school-lunch bills grouped together, and any bill advancing would require a motion, second, and majority vote to be introduced. Members also discussed that the committee was functioning much like a delayed-bills committee, with final referral to either Appropriations or Policy depending on the bill’s fiscal impact. The first major proposal was Senator Schibley’s bill to create a narrow, statewide Bank of North Dakota bridge-loan program for struggling nonprofit medical facilities, prompted by Jacobson Memorial Hospital’s financial crisis. He argued the hospital and surrounding EMS services could close without short-term help, while committee members questioned the added language, the population cap, the $10 million fund with $5 million per applicant limit, and whether the program could open the door to future requests. Representative Headland then presented two cleanup bills from the prior property-tax session: one to fix notice and tax-certification issues for local taxing districts, and another to correct how the primary residence credit is applied so taxpayers receive the full benefit rather than counties retaining part of the reimbursement. Members asked about township hearing timing, the estimated $10–15 million annual impact, and whether the credit issue could be fixed retroactively; Headland said the bill was intended to correct the problem going forward. Three school-lunch bills drew extensive discussion. Representative Vetter proposed a small administrative appropriation to add an FTE to help eligible families enroll in the existing free/reduced lunch program, saying the goal was to ensure needy children are signed up and that the state should not subsidize meals for wealthy families. Representative Nathe offered a broader bill mirroring the pending initiated measure but placing the program in statute instead of the Constitution, moving implementation up a year, and funding it with a one-time $65 million from the strategic investment fund; he said this would preserve legislative flexibility and avoid constitutional entrenchment. Representative Dressler proposed raising the state-funded eligibility threshold from 225% to 300% of poverty, arguing it would expand access while still preserving federal reimbursements and encouraging better enrollment systems. Members debated costs, future budget pressure, whether the bills set a precedent for responding to ballot measures, and whether the program should include breakfast and other operational details. Other proposals included Senator Powers’ bill to create a hyperbaric oxygen board and support rural access to hyperbaric chambers for wounds, concussions, PTSD, and other conditions; Representative Tolman’s reporting-requirements bill to force new or expanded programs to justify purpose, alternatives, evaluation methods, and full implementation costs; Representative Frelich’s bill addressing the ongoing redistricting litigation and what happens if the Supreme Court or lower courts alter the current map; and a bill requested by the Public Service Commission and ITD for FERC litigation support and ADA website/document compliance. The committee also heard a rural-health eligibility bill from Representative Twait aimed at steering federal rural health dollars toward rural providers, with questions focused on whether the mileage limits would exclude some communities. One Holocaust education item was deferred until the sponsor could be located.

Transcript Highlights:

• But the 4% program must be paired with tax-exempt bonds.
• of the project has to be financed using tax-exempt bonds.
• money in, tax money out.
• money in tax money out.
• You have to lead with the tax credits.

Summary: The Assembly Select Committee on Housing Finance and Affordability held its first hearing of 2025 to examine how California finances affordable housing and homeownership. Co-chairs opened by describing the state’s severe housing shortage, high costs, and the need for the committee to identify practical recommendations. Panelists from the California Housing Partnership, the Business, Consumer Services and Housing Agency, the Treasurer’s housing finance committees, CalHFA, and Related discussed the layered financing structure used for affordable housing, including federal low-income housing tax credits, tax-exempt bonds, state subsidies, local funds, and rental assistance. Witnesses emphasized that affordable housing projects typically require multiple funding sources and that the system is often slowed by complex applications, overlapping rules, and too many layers of financing. Several speakers noted recent federal changes that expanded the 9% and 4% tax credit programs, including a lower bond-financing threshold for 4% credits, which should allow more projects to move forward. State officials also highlighted ongoing efforts to streamline the system, including the SuperNOFA, AB 519’s one-stop-shop working group, and the planned California Housing and Homeless Agency, which is intended to align housing, homelessness, and civil rights functions. CalHFA described its homeownership and multifamily programs, including My Home, Dream For All, Cal Assist Mortgage Fund, and the Mixed Income Program, and said its financing tools help first-time buyers and developers. Related and other housing providers said the state has made real progress through land-use reform, accountability enforcement, and faster tax credit allocation, but argued that funding remains far below need. They called for more state and permanent funding sources, more efficient administration, more support for ADU and modular financing, and better attention to deeper affordability, the “missing middle,” and equity impacts on renters, women, and communities of color. The hearing was informational only; no votes or formal actions were taken.

Transcript Highlights:

• </c> the timing of a fiscal year versus a tax the timing of a fiscal year versus a tax year<00:08:11.479
• Representative Elmer thanked the speaker and said the utility property tax is a property tax; it is not
• He said there may be growth in the property tax depending upon legislation passed, offset by SWEP taxes
• in the property tax offset by swep<00:24:46.760><c> taxes</c><00:24:47.760><c> uh</c><00:24:48.080><c
• </c><04:19:44.000><c> in</c> the 501c3 tax status or tax status in the 501c3 tax status or tax status

Summary: The committee met in a work session on revenue estimates and reviewed updated spreadsheet pages for several tax categories, using prior agreements and new testimony to refine FY 2025-2027 estimates. Early discussion covered insurance tax estimates, where members reviewed a letter from the insurance commissioner saying he was comfortable with the numbers provided; the committee accepted those estimates without opposition. Members also discussed utility property tax, with testimony about recent infrastructure buildout, tariffs, depreciation, and the difficulty of forecasting future growth. After debate over whether to use the average of high and low estimates or lean lower, the committee unanimously adopted the utility property tax numbers. The committee then turned to real estate transfer tax and communications tax. For real estate transfer tax, members cited county input, housing market conditions, interest rates, lumber costs, and uncertainty about future policy; they agreed to use the averages and adopted those estimates unanimously. For communications tax, members noted the decline in landline-based revenue and the shift to data services. After discussion of whether to use the low estimate or the average, the committee settled on the average with a small rounding-down adjustment when the figure ended in .5, and adopted the numbers unanimously. The chair also clarified that these estimates remain subject to change until the final resolution is adopted. The committee next accepted interest and dividends estimates as presented, with members noting the decline in that revenue source and the lack of additional information beyond the department’s analysis. Finally, the committee began discussing tobacco tax revenue, with members noting long-term declines in smoking, offsetting effects from out-of-state sales, and a suggestion to take a slightly conservative approach by reducing the average by 0.5. The transcript cuts off during that discussion, so no final vote on tobacco is shown in the excerpt.

Transcript Highlights:

• </c> property tax year. property tax year.
• taxes.
• taxes.
• taxes.
• taxes.

Committee: Senate Election Law and Municipal Affairs

Transcript Highlights:

• or cap these taxes.
• 22.640><c> sales</c> uh state income taxes and state sales uh state income taxes and state sales taxes
• You try to do a sales tax or income tax?”
• </c><01:12:03.840><c> They</c> do a sales tax or income tax?" They do a sales tax or income tax?"
• should be a statewide tax and not disguised as a statewide tax, but it's really a local tax, which is

Committee: House Education Funding

Transcript Highlights:

• And so basically what this bill is, simply put, this bill is a tax on groceries. Thank you.
• Simply put, this bill is a tax on groceries.
• And that also is a tax on the grocery cart.
• Well, this is a provider tax that is continuing.
• It used to be This is a provider tax that is continuing.

Summary: The House Appropriations Committee held a public hearing on House Bill 2565, which would require University of Washington gifts, grants, and similar funds to be invested through the Washington State Investment Board instead of UW’s internal investment office. Staff and the prime sponsor argued the change would lower fees and improve returns, while UW’s representatives opposed the bill, citing concerns about donor intent, legal restrictions on thousands of individual endowments, and differences in portfolio management and liquidity needs. No questions were raised in the hearing, and no action was taken on the bill at that time. The committee then moved into executive session on several bills. On Third Substitute House Bill 1607, related to recycling and waste reduction, members adopted a technical amendment but rejected amendments that would have directed unredeemed deposits to the Working Families Tax Credit and litter programs, added accountability requirements for grants, or created a SNAP-related benefit. The bill was then reported out of committee with a do pass recommendation on a 17-13 vote. On Second Substitute House Bill 1622, concerning bargaining over public employers’ use of artificial intelligence, members adopted one amendment updating the AI definition and rejected three others that would have narrowed bargaining triggers or limited the bill to technologies with demonstrable material impacts. The bill was reported out with a do pass recommendation on a 19-11 vote. The committee also advanced House Bill 2254, which would cover administrative costs for the Partnership Access Line assessment, and House Bill 2385, which extends timelines for the Medicaid access program after federal changes affected implementation; both were reported out with do pass recommendations. House Bill 2531, continuing and adjusting the ground transportation quality assurance fee structure, also passed out of committee. Finally, House Bill 2543, allowing county clerks to increase certain fees to cover court-related costs, was reported out with a do pass recommendation on a 22-6 vote. The committee adjourned after completing its business.

Transcript Highlights:

• Within it, there was a tax, a luxury tax on aircraft, which is a challenge.
• And so what the luxury tax does is it assesses a 10% tax. They have a privilege tax.
• It is a luxury tax and privilege tax because we already have a sales tax and use tax over 10% each.
• They're not paying $4 million in tax; they would pay $6 million in tax.
• That fuel is heavily taxed. That airplane wouldn't happen. A ton. That fuel is heavily taxed.

Summary: The meeting was an Aviation Caucus gathering hosted at Paine Field and Boeing, with introductions from legislators, aviation organizations, airport officials, and industry representatives. Speakers emphasized the importance of aviation and aerospace to Washington’s economy and the need to better educate lawmakers and the public about the sector’s value. Several participants also highlighted the role of airports in business activity, emergency response, wildfire support, and medical services, and urged attendees to build relationships with legislators to protect and expand aviation funding. A major topic was opposition to the aviation-related tax provisions in Senate Bill 5801, described by speakers as a luxury and privilege tax on aircraft. Legislators and industry advocates argued the tax would discourage aircraft ownership and use in Washington, drive aircraft and business operations out of the state, and harm jobs and tax revenue. They said the caucus would continue working toward repeal of the aircraft tax provisions and broader solutions for aviation infrastructure funding, though they acknowledged the state budget situation makes new funding difficult this year. John Dobson presented data estimating aviation’s large share of state GDP, jobs, wages, and tax revenue, and also raised concerns about aviation fuel tax revenues being diverted away from aviation purposes. The meeting also featured updates on mental health efforts in aviation, with Brian Baumoff of the Pilot Mental Health Campaign describing federal legislation to improve access to treatment and transparency around medications, and a prior state bill aimed at helping pilots navigate medical leave and treatment costs. Haley Coffey of the Aerospace Futures Alliance encouraged participation in its upcoming Hill Day to strengthen aerospace advocacy in Olympia. Boeing representatives gave an overview of company safety and culture changes after recent incidents, workforce and supplier numbers in Washington, production plans including a permanent Moses Lake site and a future Everett narrow-body line, and workforce development programs such as Core Plus Aerospace and tuition support. The caucus also adopted a House resolution honoring Harry R. Anderson for becoming the first person to fly and sail solo to all seven continents, and attendees toured the Boeing facility after the meeting.