Transcript Highlights:

• , not the consumers to whom the tax was passed down.
• So we paid into this tax.
• , not the consumers to whom the tax was passed down.
• So we paid into this tax.
• So we paid into this tax.

Committee: House House Rural Economic Development Committee of Reference

Summary: The Committee on Rural Economic Development convened, adopted its committee rules, and briefly introduced members and staff. The chair noted a hard stop time and moved quickly through the agenda. The committee also heard a general discussion that future meetings would likely include a mix of rural housing, broadband, transportation, and economic development measures. The committee passed HB 2258, which adds La Paz County to Area 4 for representation on the Tourism Advisory Council, on a 7-0 vote. It then considered several Apache Junction and Pinal County-related appropriation bills. HB 2065 would appropriate $9.5 million for housing infrastructure, rehabilitation, and blight abatement in Apache Junction; HB 2066 would appropriate $8 million for broadband and fiber expansion there; and HB 2071 would appropriate $15.5 million for a rural business and workforce hub, infrastructure revitalization, and a rural health/community services facility. Members and the sponsor emphasized rural housing shortages, broadband gaps, and the need to bring Apache Junction and other rural areas up to parity with larger cities. The committee also passed HB 2106 on a 7-0 vote. That bill would direct undistributed or non-refunded revenues from a county transportation excise tax, collected before April 10, 2026, to ADOT for county transportation projects, with the sponsor explaining it as a way to use remaining Pinal County tax proceeds for roads after litigation and refunds. Several members discussed the need for broader rural investment, including possible amendments to include the Navajo Nation and other rural communities, and one bill was held over for the next agenda due to time.

Transcript Highlights:

• for developers continuing to levy taxes.
• It seems like quite a few cities are collecting this tax.
• Charles Chapman: Business tax has been around for 50 years.
• Cities do not have, they do not create taxes out of thin air.
• McFarland: licenses, corporate income tax, when is it enough tax to levy on a business?

Transcript Highlights:

• of the pie, sales tax at the bottom, and then all other taxes, or sometimes you'll see this referred
• Some core sources of revenue: income tax, corporate income tax, sales tax, product tax, and miscellaneous
• Some core sources of revenue: income tax, corporate income tax, sales tax, product tax, and miscellaneous
• The tax collection starts, the Tax Commission starts reporting on the taxes that have come in.
• , corporate income tax, sales tax, product tax, and miscellaneous revenue has come in over the years.

Summary: JFAC began with a presentation from Legislative Services on the general fund and the “green sheet,” explaining how the committee tracks starting cash, revenue forecasts, transfers, appropriations, and ending balances. The analyst walked through general fund revenue sources, the difference between transfers and expenditures, structural balance, and how the green sheet is used to compare current-year collections against forecasts. Members asked about continuously appropriated funds, federal dollars, sales tax exemptions, and cash reconciliation issues tied to the state’s new Luma finance system and interest allocations. The discussion also covered the revenue monitor and how the committee can use it to track collections against forecasted amounts. The committee then moved into the Department of Health and Welfare’s overall budget overview. Legislative Services reviewed the department’s size, organizational structure, vacancy rate, five-year spending trends, and the role of continuously appropriated funds such as the Idaho Children’s Trust Fund and Rural Physician Fund. Members asked about personnel vacancy rates, reverted funds, and whether the department could provide a list of subgrants and trustee-and-benefit payments. Department officials explained that some vacancies reflected a department-wide review, hiring freeze, and FTP realignment, including moving positions to State Hospital South and reverting some federal spending authority. They also said the department was actively filling funded positions and would provide additional information on grants and other payments. The committee then heard the first division-level budget presentation for Indirect Support Services. The analyst described the division’s role in centralized administration, IT, legal, communications, and management support, along with its staffing, historical expenditures, and base budget changes. The division’s budget request included a one-time irrigation system project at State Hospital West, a fund adjustment for the background check unit, the transfer of 58 FTP and related costs to the Office of Information Technology as part of modernization, and a request to remove restrictive budget language on personnel and trustee-and-benefit transfers. The governor’s recommendation also included support for some replacement items and a major new item tied to Idaho’s Rural Health Transformation Program, including 12 limited-service FTP in 2026, ongoing FTP in 2027, and $294 million in one-time operating funds. Members questioned the need for the new FTP, the use of AI, the definition of “rural,” and the mechanics of the IT transfer; department and ITS officials explained the transfer was a budget shift of personnel and operating costs, not a net increase in staffing. The committee adjourned after members also raised broader concerns about public input on Health and Welfare budgets and suggested a joint public meeting with the Health and Welfare committees.

Transcript Highlights:

• Facility property tax abatements would not be allowed under Chapter 312 of the Tax Code and Chapter 380
• However, Chapter 312 of the Tax Code, which we renewed in 2019, still allows local property tax abatements
• , sales taxes, and other forms of incentives.
• an imbalance in treatment by federal tax law.
• ...tax abatement, because I take it out.

Bills: HCR35 , SJR59 , SJR84 , SCR30 , SB127 , SB317 , SB324 , SB457 , SB506 , SB511 , SB529 , SB547 , SB584 , SB619 , SB636 , SB646 , SB659 , SB715 , SB732 , SB735 , SB771 , SB784 , SB800 , SB801 , SB904 , SB1026 , SB1049 , SB1065 , SB1181 , SB1224 , SB1250 , SB1383 , SB1467 , SB1524 , SB1528 , SB1531 , SB1568 , SB1585 , SB1640 , SB1681 , SB1754 , SB1757 , SB1777 , SB1972 , SB1980 , SB2007 , SB2041 , SB2046 , SB2050 , SB2055 , SB2069 , SB2080 , SB2119 , SB2138 , SB2139 , SB2154 , SB2201 , SB2225 , SB2268 , SB2306 , SB2308 , SB2310 , SB2330 , SB2366 , SB2375 , SB2392 , SB2401 , SB2422 , SB2480 , SB2514 , SB2530 , SB2533 , SB2543 , SB2544 , SB2589 , SB2610 , SB2615 , SB2623 , SB2660 , SB2662 , SB2693 , SB2695 , SB2707 , SB2722 , SB2742 , SB2753 , SB2807 , SB2843 , SB2844 , SB2858 , SB2880 , SB2885 , SB2891 , SB2925 , SB2938 , SB2986 , SJR3 , SJR18 , SB5 , SB914 , SB963 , SB1197 , SB1415 , SB1437 , SB1786 , SB326 , SB767 , SB769 , SB783 , SB1035 , SB1271 , SB1619 , SB1637 , SB1806 , SB1 , SB260 , HB135 , HB 1109 , HCR35 , HCR64 , SJR36 , SJR50 , SJR63 , SJR84 , SJR59 , SCR12 , SCR39 , SCR48 , SCR19 , SCR30 , SCR3 , SB2023 , SB619 , SB2742 , SB646 , SB1026 , SB2880 , SB62 , SB666 , SB847 , SB284 , SB854 , SB1073 , SB810 , SB1505 , SB583 , SB1502 , SB507 , SB1434 , SB1376 , SB1585 , SB1772 , SB2016 , SB1163 , SB1122 , SB731 , SB397 , SB508 , SB1436 , SB287 , SB261 , SB1882 , SB393 , SB1791 , SB529 , SB209 , SB2429 , SB1999 , SB511 , SB2309 , SB510 , SB584 , SB1085 , SB2046 , SB1975 , SB2717 , SB1262 , SB1524 , SB636 , SB2056 , SB884 , SB517 , SB1200 , SB1845 , SB1863 , SB2681 , SB2200 , SB2199 , SB1757 , SB2050 , SB2458 , SB2201 , SB2660 , SB2662 , SB1065 , SB801 , SB2533 , SB3014 , SB3013 , SB758 , SB1721 , SB2366 , SB1013 , SB2797 , SB2383 , SB1754 , SB2119 , SB2448 , SB1777 , SB1283 , SB2392 , SB2076 , SB2786 , SB2876 , SB2284 , SB2225 , SB1540 , SB2929 , SB1972 , SB2540 , SB2595 , SB2217 , SB715 , SB2330 , SB1383 , SB500 , SB1640 , SB2001 , SB2080 , SB506 , SB2514 , SB2753 , SB2398 , SB1241 , SB2927 , SB2173 , SB2538 , SB898 , SB1449 , SB2529 , SB1531 , SB2846 , SB2476 , SB986 , SB1181 , SB2075 , SB2154 , SB2864 , SB1359 , SB2386 , SB771 , SB2844 , SB2550 , SB1351 , SB1423 , SB1931 , SB2245 , SB2589 , SB2707 , SB2807 , SB410 , SB659 , SB2776 , SB2693 , SB2580 , SB1980 , SB1886 , SB1234 , SB739 , SB456 , SB127 , SB1666 , SB2843 , SB2801 , SB800 , SB2055 , SB784 , SB2986 , SB735 , SB1012 , SB324 , SB2926 , SB2938 , SB2007 , SB2138 , SB1242 , SB2615 , SB1049 , SB2310 , SB1224 , SB2972 , SB1568 , SB2841 , SB2885 , SB3016 , SB2858 , SB2610 , SB2139 , SB1856 , SB2035 , SB2308 , SB2306 , SB2041 , SB1528 , SB1681 , SB1141 , SB2401 , SB2530 , SB2375 , SB547 , SB1266 , SB1373 , SB1467 , SB2069 , SB2269 , SB2480 , SB2544 , SB672 , SB904 , SB2695 , SB2891 , SB2422 , SB2543 , SB1854 , SB317 , SB2539 , SB2532 , SB2925 , SB1250 , SB2082 , SB2203 , SB457 , SB2357 , SB2721 , SB243 , SB1285 , SB2568 , SB1959 , SB1442 , SB1454 , SB2520 , SB2541 , SB1708 , SB1237 , SB1844 , SB1586 , HB1392 , HB22 , SB1551 , SB3039 , SB2819 , SB66 , SB629 , SB1015 , SB2342 , SB2903 , SB2933 , SB1965 , SB2477 , SB3029 , SB2605 , SB2419 , SB1957 , SB375 , SB250 , SB777 , SB628 , SB2523 , SB2367 , SB2703 , SB2608 , SB2778 , SB3044 , SB2965 , SB2521 , SB865

Transcript Highlights:

• And so once the earnings reach that level, and state taxes—I mean, we all know our income tax, sales
• tax, and then there are taxes that are collected directly for use of the budget, but then there are other
• So that could be income taxes. That could be... ...taxes. So that could be income taxes.
• That could be sales taxes.
• Well, the earnings have to equal the tax, what we bring in from the taxes.

Committee: House Special Committee on Intergovernmental Affairs

Transcript Highlights:

• for tax preferences.
• and so come off the tax rolls?
• If it’s transferred to a nonprofit that is tax-exempt, then it basically would come off the tax rolls
• and there’d be no tax assessed.
• I’m just—would there be a property tax?

Bills: SB6139 , SB6214 , SB6237 , SB6091 , SB6096 , SB6200 , SGA9278 , SGA9279

Committee: Senate Housing

Keywords: rental payments, landlords, tenants, eviction, legal procedures, housing stability, land banking, property authority, housing development, urban planning, real estate management, SB 6237, Washington landlord-tenant law, Residential Landlord-Tenant Act, rental property disclosure, flood risk, flood hazard area, special flood hazard area, potential flooding, tenant notice

Transcript Highlights:

• CDTFA administers state and local sales and use taxes, among several other tax and fee programs.
• CDTFA administers state and local sales and use taxes among several other tax and fee programs.
• Sometimes. of state and local sales and use taxes, among several other tax and fee programs.
• To date, there are zero taxpayers registered for that tax. Zero taxpayers registered for that tax.
• Number one, they may not have an obligation to collect the tax.

Committee: Senate Rules

Transcript Highlights:

• And then we're going to subtract your state income tax and your federal income tax.
• They either have no tax liability at the end, or they receive a credit, a refundable tax credit.
• And the two major ones are the earned income tax credit, and there's also the additional child tax credit
• They either have no tax liability at the end, or they receive a credit, a refundable tax credit.
• And you can ensure that you phase down that benefit so that benefit loss plus tax and taxes phase is

Committee: All ALC-HOSPITAL, MEDICAID, & DEVELOPMENTAL DISABILITIES STUDY SUBCOMMITTEE

Summary: The committee first heard from Arkansas Workforce Connections and the Department of Commerce about a package of nine federal waivers submitted to the U.S. Department of Labor under WIOA and Perkins. The officials said the waivers would give Arkansas more flexibility over governance, funding, affiliate centers, and program rules, and that the state expects a response by August 29. They said the package is modeled more closely on Louisiana’s approved waivers than on states with more denials, and outlined a possible transition plan if approved, including a transition committee, policy changes, board training, staffing, and follow-up legislation. Members asked about whether the waivers would affect services for people with disabilities; the officials said not directly, because the waivers focus on WIOA Titles I and III rather than vocational rehabilitation under Title IV. The committee then focused on “benefit cliffs” and work disincentives in safety-net programs. Researchers from the Georgia Center for Opportunity and the Alliance for Opportunity explained how earnings loss rates from taxes and benefit phaseouts can exceed 50%, 75%, or even 100%, making additional work or promotions financially unattractive. They presented Arkansas-specific modeling showing multiple cliffs and stacking effects across SNAP, Medicaid/CHIP, LIHEAP, WIC, reduced-price lunches, child care, and housing assistance, and argued that child care and health coverage create some of the largest disincentives. They suggested policy options including SNAP demonstration waivers, child care subsidy redesign, TANF outcome-based funding, Medicaid premium assistance and health savings accounts, and a possible small-scale pilot to test a more integrated safety net. Heather Webb of Arkansas Family Alliance and Molly Palmer of the Heart of Arkansas United Way added testimony from families, employers, and nonprofits. Webb described a working mother who lost Medicaid and a housing subsidy as her income rose, saying the cliff left her stressed despite earning more. Palmer said Arkansas’s ALICE population often works multiple jobs and still cannot meet basic living costs, and that employers report recruitment and retention problems when workers face benefit cliffs. Members asked for more data on savings and program impacts, and the witnesses said they could provide Arkansas-specific modeling and scenario analysis. The meeting ended with discussion of public-private partnerships, employer-sponsored insurance premium assistance, marriage penalties, and the need to coordinate or consolidate fragmented programs before adjourning.

Transcript Highlights:

• tax base?
• </c> the Alton tax collector uh Alton tax the Alton tax collector uh Alton tax collector<00:22:33.360
• </c> one thing and and letting the state tax one thing and and letting the state tax it<00:25:53.559>
• </c><00:26:56.000><c> a</c> than a Statewide property tax a than a Statewide property tax a Statewide
• Taxes.

Summary: The Department of Education’s Bureau of School Finance provided an adequacy-funding training for Division II, led by Mark Mello. He walked the committee through the adequacy formula using Albany, Allenstown, and Alton as examples, explaining average daily membership, base adequacy aid, and differential aid for free/reduced-price meals, special education, and English language learners. He also noted a recent change requiring home-education differential aid and emphasized that these aid streams are generally unrestricted district funding rather than money tied to specific students or programs. A major focus was the ongoing litigation over the adequacy base amount and the statewide education property tax, or SWEPT. Mello explained the historical basis of the current base amount, the 2008 legislative report that set the original methodology, and the later court ruling that the adequacy amount should be $7,356, which is now before the Supreme Court. He also described how SWEPT currently raises a fixed statewide amount of $363 million and how that revenue is used to offset the state’s adequacy obligation. For the example towns, Albany and Allenstown receive state adequacy grants because their SWEPT revenue is below their calculated adequacy cost, while Alton is an excess SWEPT community because its local SWEPT revenue exceeds the cost of adequate education. The discussion then turned to the pending “excess SWEPT” issue in the Supreme Court and what would happen if excess collections had to be remitted to the state. Mello said the Department is preparing a hypothetical walkthrough and explained that, if the court upholds the Superior Court ruling, DRA would likely be directed to collect excess SWEPT. Members raised concerns about whether SWEPT must be used for educational purposes and about the cash-flow burden on towns if money had to move from municipalities to the state and then back to districts. Mello and members discussed possible administrative workarounds, such as credits against other state aid distributions, and noted that the committee would continue reviewing the mechanics if the court decision comes down during budget work.

Transcript Highlights:

• sales tax.
• We also explored a modified TBD sales tax, so an additional sales tax within a transportation benefit
• TBD sales tax authority.
• and other taxes; local restricted revenues, such as a TBD sales tax, which we just talked about; state
• Declining fuel tax, gas tax revenues: statewide gasoline consumption is projected to continue to decrease

Committees: Joint Transportation , Joint Joint Transportation Committee

Transcript Highlights:

• This bill also updates the statute to require sales and use tax offsets.
• Larry Gattis, I'm the Williamson County Tax Assessor-Collector, and I do represent the Tax Assessor-Collector's
• So a $10 gift tax, even in that scenario, we're still taxing a widow on the transfer of that vehicle
• with a $10 gift tax.
• If you're going to tax it, at least tax me on the net equity, but we're getting rid of all of that.

Bills: SB868 , SB1337 , SB1371 , SB1377 , SB1426 , SB1620 , SB2064 , SB2065 , SJR4 , SJR 4

Committee: Senate Finance

Transcript Highlights:

• The Water Trust Fund is 9 off of severance tax funds.
• House Bill 90 is a tax credit bill that would allow A $1,000 tax credit for eligible preceptors.
• and through employee taxes.
• So it actually with the tax credit, a single 50 megawatt project would actually be bringing in more tax
• in the current tax credit.

Committee: House House Taxation & Revenue

Transcript Highlights:

• It's tax day, so what better day to talk about a tax incentive with you guys?
• As members of a tax and finance committee, I know you're concerned about the fiscal impact of any tax
• Tax revenue.
• On tax day, I really would urge you to look at this not as a tax expenditure...
• On tax day, I really would urge you to look at this not as a tax expenditure, but as a strategic investment

Committee: House Finance and Taxation

Summary: The Finance and Tax Committee met to consider Senate Bill 2397 and a proposed amendment creating a development incentive well program for North Dakota oil and gas production. Representative Dockter explained the amendment as a way to encourage exploratory and innovative drilling in light of the state’s financial outlook and the growing share of stripper wells. Department of Mineral Resources Director Nathan Anderson and DMR geologist Timothy Nashim presented background on the Bakken and Three Forks formations, with Nashim describing research showing that Middle Three Forks second-bench development can add reserves in some areas but not others, and that roughly 600 additional wells in the strongest area could yield about 250 million barrels of oil. Continental Resources representatives William Houser and John Argo supported the amendment. They said the bill would give a temporary oil extraction tax exemption for certified development incentive wells, limited to 36 months or 300,000 barrels, and would also update tax treatment for gas used in enhanced oil recovery and on-site electric generation. They argued the measure would encourage new technology and testing in existing spacing units, complementing House Bill 1483, which they said focused on geographic expansion into non-Bakken and non-Three Forks areas. Argo said Continental still invests heavily in North Dakota but is shifting rigs elsewhere because of economics, and he urged incentives to spur exploration and preserve the basin’s long-term future. North Dakota Petroleum Council executive director Ron Ness also supported the concept, calling it a targeted, low-risk way to encourage innovation and future barrels. Committee members asked about royalty treatment, the difference from House Bill 1483, pressure maintenance, and how the program would be administered. DMR said the amendment should clarify that the operator bears the burden of proving a well qualifies and that only one incentive well per stratigraphic interval should be certified. No vote was taken; the committee paused to work on revised language and indicated the bill would likely need further adjustment, possibly in conference committee.

Transcript Highlights:

• Tom Yamach from Tax Foundation of Hawaii.
• Up next we have Tax Foundation of Tom MAA online.
• Tax to be sent to the legislature 20 days prior to the 2029 session as to the collection of the tax credit
• </c> technology infrastructure renovation tax technology infrastructure renovation tax credit<00:16:24.440
• </c><00:16:50.279><c> credit</c> uh uh of the tax credit uh uh of the tax credit program<00:16:52.440

Summary: The Committee on Labor and Technology heard testimony on several measures. SB 338, relating to taxation, would temporarily reinstate the Act 221 technology infrastructure renovation tax credit and expand eligible technology-enabled infrastructure to include data servers; Tax Department said it had no requested changes, SurfPAC supported the bill, and the Tax Foundation offered comments. Members later advanced SB 338 with amendments, including a report to the Legislature before the 2029 session and technical changes. SB 1491, on departmental data sharing, would add the Department of Taxation to the state longitudinal data system to share aggregated wage data; UH, Hawaii P20, and the Tax Foundation supported it, and Taxation said it could comply as written. The committee amended the bill to also include DBEDT and then passed it with amendments. The committee also considered SB 1156 on sexually explicit deepfakes, SB 853 on an immigration services trust fund, SB 436 on limiting State Fire Marshal service to three terms, and SB 1034 on rest periods in the food service industry. The Attorney General said SB 1156 was unnecessary because existing law already covers AI-created deepfakes, and the committee deferred the bill. SB 853 drew support from DLIR/Office of Community Services and civil rights advocates, but opposition testimony noted substantial public opposition; the committee deferred the measure, saying existing resources from Act 7 made the trust fund premature. SB 436 drew concerns from the State Fire Council representative that term limits would add complications, but the committee passed it with amendments. SB 1034 drew mixed testimony: DLIR stood on comments, the restaurant association supported the intent but suggested changing the five-hour threshold, and the Hawaii Food Industry Association opposed it over the lack of a definition of food service industry; the committee amended the bill to add that definition and passed it with amendments. At the later 3:15 p.m. decision-making-only agenda, the committee deferred SB 730 indefinitely after conferring with the PSM chair, saying it was special legislation needing further work in the interim.

Transcript Highlights:

• Is this equivalent tax? I don't understand fire insurance premium taxes.
• We have insurance premium taxes. Is this the same as what our Fire insurance premium taxes.
• We have insurance premium taxes. Is this the same as what our insurance premium taxes are?
• of their taxing authority.
• It's the same thing with the insurance tax, premium tax: that money that isn't touched goes to the general

Summary: The committee was called to order, a quorum was established, and the minutes from the prior meeting were approved. The first major presentation came from Montana Public Employees Retirement System executive director William Hollahan, who gave an overview of Montana’s Volunteer Firefighters’ Compensation Act plan. He explained that the plan covers volunteer firefighters in unincorporated areas, is funded by 5% of state fire insurance premium taxes, and currently serves 228 departments with about 2,936 active members and 1,242 retirees. He described eligibility rules, annual training and reporting requirements, benefit levels for partial and full pensions, disability, death, medical, and funeral benefits, and said the plan is actuarially sound with roughly $60 million in assets and a funded ratio slightly above 100%. Committee members asked about prior-service credit, whether EMS personnel are included, the effect on recruitment and retention, and whether expanding coverage would require a funding analysis; Hollahan said prior service is not credited, EMS is not currently included, and any expansion would need financial review. Tim Walleen of Workforce Safety and Insurance then presented a draft North Dakota workers’ compensation solution for volunteer firefighters and volunteer EMS personnel. He explained that volunteer responders are already covered by workers’ comp for medical and wage-loss benefits, but the proposal would set a minimum annual wage of $30,000 for calculating wage-loss benefits for qualifying volunteers, with the benefit paid at two-thirds of that amount. Representative Porter suggested tying the volunteer definition to existing code rather than a fixed dollar amount, and Walleen agreed. Questions focused on whether search and rescue or other volunteer emergency services could be included, whether departments would face new paperwork, and whether volunteer organizations can already elect coverage; Walleen said there would be no additional paperwork and that volunteer coverage is already available. The committee also heard from volunteer fire service representatives and the state fire marshal. An Oakes-area firefighter, Mr. Olson, testified that small departments are struggling with retention, communication, and administrative burdens, especially around separate bookkeeping and funding rules for donated or fundraising money, and he said departments need clearer guidance from the state. State Fire Marshal Dr. Matthew Clark introduced himself and outlined a broader effort to improve education, support, and coordination for fire departments, including a planned 10% audit of certificates of existence beginning in 2027, more outreach through his office, and better assistance with training, reporting, and grant access. He said his office is authorized under current law to provide these services, but the role has been vague and underused. Finally, Arnagard Rural Fire District Chief Rick Schreiber testified in favor of new recruitment and retention ideas, including retirement-style benefits, health insurance, tax incentives, scholarships, grants, and more remote or regional training. He said volunteer departments are losing members, that local tax and donation funds are already stretched, and that any new retirement or incentive program should be sustainable and likely involve a mix of state and local support.

Transcript Highlights:

• Um it's 2x if you mostly the gas tax.
• So 31.8 cents per gallon is the gas tax.
• At per gallon is the gas is the gas tax.
• Uh the charging tax as has been stated.
• paid per gallon of gas in the calculations, including the federal gas tax, the state gas tax, and the

Bills: HF3919 , HF3791 , HF1781 , HF3908 , HF4233 , HF3966 , HF3430

Committee: House Transportation Finance and Policy

Transcript Highlights:

• The large one in the House was relative to the business tax, real estate transfer tax, and tobacco tax
• Next, three lines, 8, 9, and 10, are the business tax, tobacco tax, and real estate tax splits, we call
• real</c> business tax, tobacco tax and real business tax, tobacco tax and real estate<00:38:13.200><
• <00:39:58.640><c> the</c> relative to the taxes that between the relative to the taxes that between the
• splits because the business tax revenue, lottery, tobacco tax revenue, and real estate revenue are split

Summary: The presentation was an LBA overview of Senate changes to the House-passed state budget, with Michael Kane explaining how Senate Finance updated revenue and spending estimates after April revenue figures and agency discussions. He said the Senate’s revenue outlook was higher than the House’s in some areas, but lower in others, especially video lottery terminal revenue, and that the biggest differences also came from changes to revenue splits between the general fund and education trust fund, lapse estimates, and several policy changes in House Bill 1 and House Bill 2. Kane highlighted several major revenue and policy differences: the Senate changed the business tax, tobacco tax, and real estate transfer tax splits; adjusted liquor revenue dedication; removed the House’s meals-and-rooms distribution cap; delayed the Lakes Region facility proceeds plan; altered the PECARD fund treatment; added a granite patron of the arts tax credit; and changed the treatment of unique funds and video lottery terminal revenue. On spending, he noted Senate changes to judicial, corrections, HHS, human rights commission, and other budgets, including additional settlement costs, higher lapse assumptions, and a different approach to Medicaid premium revenue and retirement savings. He also described Senate additions such as a nursing home bed fee, Hampstead Hospital transition funding, and changes to the YDC claims settlement fund. The presentation focused on comparing House and Senate surplus statements across fiscal years 2025 through 2027, including projected ending balances and rainy day fund transfers. Kane repeatedly emphasized that the numbers were still dependent on final revenues and lapse amounts, and that some balances would be carried forward and trued up later in the biennium. No committee vote or final action was described in the excerpt; it was an informational budget briefing and comparison of the two chambers’ proposals.

Transcript Highlights:

• </c> uh to impose a sales tax. uh to impose a sales tax.
• tax.
• </c> misconception about property tax. misconception about property tax.
• It is tax credits though. It's like it's above the tax line.
• It's not actual general fund dollars going out, but tax credits and tax breaks, that's spending.

Transcript Highlights:

• Uh, first up to to the liquor tax.
• </c> classification and corresponding tax classification and corresponding tax rates<00:15:22.480><c>
• </c><00:24:46.720><c> in</c> the existing tax rate tax rates were in the existing tax rate tax rates
• </c> importers would not pay this tax. importers would not pay this tax.
• But when you produce in the taxes.

Bills: HB1991 , HB1776 , HB1897 , HB1900

Committee: House Consumer Protection & Commerce

Summary: The committee heard testimony on HB 1991, which would change Hawaii’s liquor excise tax structure to an ABV-based system. The Department of Taxation and the Tax Foundation of Hawaii took no position and stood on written comments. Supporters, including the Hawaii Public Health Institute and an individual testifier who described surviving a drunk-driving crash, argued that higher alcohol taxes reduce alcohol-related harms, save lives, and generate additional state revenue. The public health witness cited alcohol-related harms as a major preventable cause of death and said the tax increase would have only a small annual cost for most consumers. Most industry testimony was in opposition. Representatives of Lanikai Brewing Company, Maui Brewing Company, the Wine Institute, and the Hawaii Food Industry Association said the bill would sharply raise taxes on beer and wine, squeeze already thin margins, and threaten local jobs and businesses. They argued Hawaii producers already face high costs for labor, energy, shipping, and compliance, and said an ABV-based tax would be difficult to administer, would require additional testing and labeling work, and could reduce consumer choice. Several industry witnesses urged lawmakers to instead adopt a small-producer or class 18 carveout, with one suggesting a cap tied to 60,000 barrels. Committee members questioned the brewers about alcohol content testing, labeling, and whether smaller producers already measure ABV. Witnesses said many local producers do not certify ABV for in-state sales, that yeast and fermentation can vary by batch, and that an ABV-based system could require more testing than current practice. No vote or final action on the bill was taken during the portion of the meeting provided.

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
• Currently, under state law, California imposes an annual tax of $800 on all businesses, regardless of
• By combining these exemptions, we restore fairness, but this is about more than just a tax break.
• As the senator noted, Senate Bill 762 does not impose a tax increase.

Summary: The committee heard several tax and local government measures. SB 288 would clarify Proposition 19 rules for inherited homes in probate so the one-year timeline to claim the property tax benefit starts when the home is legally transferred; it had support from the Howard Jarvis Taxpayers Association and passed 5-0 to Appropriations as amended. SB 347 would reduce the state’s minimum annual tax on LLCs, LLPs, limited partnerships, S corporations, and C corporations from $800 to $600; it also passed 5-0 to Appropriations as amended. SB 762 would authorize the city of Hercules to ask voters to approve a local sales tax increase of up to 1% to support city services and infrastructure; it passed 4-1 to Local Government, with one no vote from Senator Valadares. The committee also considered veteran property tax relief measures. SCA 4 would remove a constitutional restriction so eligible veterans could stack the homeowners’ exemption with the disabled veterans’ or veterans’ exemption, and SB 623 would make conforming statutory changes to implement that constitutional amendment. Both measures were supported by veterans’ organizations, the Howard Jarvis Taxpayers Association, and county representatives, and both passed unanimously 5-0 to their next committees, with SCA 4 going to Elections and Constitutional Amendments and SB 623 going to Military and Veterans Affairs. The consent calendar, including SB 575 by Senator Laird, was adopted 5-0 after technical amendments were accepted. The committee then lifted the call on SB 288 and confirmed its 5-0 vote. The meeting concluded after all listed items were acted on.