Transcript Highlights:

• It will be funded by a half-cent sales tax in four counties.
• One county, San Francisco, will be a full-cent sales tax.
• Five counties are being taxed; nine counties are calling the shots.
• tax that the three other counties pay.
• Santa Clara County and Alameda County are bigger counties that pay a lot of sales tax.

Summary: The Assembly Transportation Committee heard SB 63 by Senator Wiener, as amended and coauthored by Senator Arreguín, a Bay Area transit funding measure intended to avert major service cuts at BART, Muni, Caltrain, and AC Transit. The authors said the region faces a fiscal cliff and that without new revenue, BART could collapse and other systems could face severe reductions. They described the bill as the product of extensive negotiations among the five Bay Area counties and transit operators, with San Mateo and Santa Clara counties opting in during the process. Much of the discussion focused on accountability and governance. Supporters said the bill includes some of the strongest oversight provisions in recent memory, including a third-party efficiency review and ad hoc adjudication committees that can withhold a portion of funding if operators fail to correct problems. Assembly Member Papin and Assembly Member Lackey argued the measure amounts to a taxpayer bailout with insufficient representation and too much control left to MTC, while the authors responded that the bill gives affected counties direct complaint and enforcement authority and that MTC must follow the ad hoc committees’ recommendations. Several members asked about complaint procedures, withholding thresholds, opt-in/opt-out issues, and whether the funding would return to the source counties if withheld. Testimony in support came from SPUR, Caltrain, MTC, the Bay Area Council, BART, SamTrans, VTA, San Francisco MTA, transit coalitions, environmental groups, local governments, and labor. Supporters emphasized the risk of severe service cuts, the importance of preserving recent investments such as Caltrain electrification, and the need for regional self-help. There was no registered opposition witness, though some members spoke against the bill. The committee ultimately voted 11-5 to pass SB 63 as amended to the floor, with the committee amendments also removing urgency language.

Transcript Highlights:

• tax system.
• tax credit program.
• rather than offsetting all their tax liability with tax credits.
• You know, in my county, Alameda County, we are not a pro-housing designation county.
• Some counties have. Some haven't. Some counties have. Some haven't. Some counties have.

Summary: The committee opened with the State Controller’s Office May Revision requests, including funding for Fiscal book-of-record stabilization, a Broadcom IDMS licensing adjustment, the California State Payroll System, ACFR reporting automation, and $3 million for unclaimed property outreach. Testimony emphasized progress on Fiscal becoming the state’s accounting book of record in July, faster ACFR publication, and the move to electronic unclaimed property claims. Members asked about the size of the unclaimed property fund and how quickly money is transferred to the General Fund; the Controller’s office said about $15 billion is held, with most excess transferred regularly, and the LAO noted the fund is the General Fund’s fourth-largest revenue source. No concerns were raised by Finance or the LAO, and the item was closed after no public comment. The committee then heard the administration’s proposal to tax prewritten digital software and software-as-a-service, with Finance saying it would modernize sales tax treatment and raise an estimated $450 million General Fund and $560 million local revenue in 2026-27. The LAO supported modernizing the tax but suggested broader digital goods coverage and a business-use exemption; industry and taxpayer groups opposed the proposal, warning of higher costs for consumers and businesses. Members also heard CDTFA’s administrative request tied to the proposal, plus a separate CDTFA budget reduction reflecting lower operational needs; that reduction was presented as a savings item and drew positive reactions. Next, the committee considered federal conformity for “Trump accounts,” which would align California tax treatment with federal rules for tax-deferred children’s accounts and avoid tracking burdens for families. The LAO recommended approval, and the item drew no opposition. The committee also heard a proposal to cut the first-year $800 annual business tax to $400 for LLCs, LPs, and LLPs; Finance argued it would lower startup costs and encourage new business formation, while the LAO said the benefit was not well targeted and could subsidize entities that would form anyway. Members discussed the policy tradeoff, and public commenters split between support for small business relief and concern about revenue loss. The final major revenue item was a permanent business tax credit limitation, capping credits at the greater of $5 million per corporation or 50% of pre-credit liability, while excluding the low-income housing tax credit and personal income tax credits. Finance said it would raise significant revenue from large profitable corporations, and the LAO said it was a reasonable option but noted it would mainly affect the R&D credit and could have future implications for programs like California Competes. Public testimony was sharply divided, with business groups opposing the cap and anti-poverty advocates supporting it as a way to recapture revenue. The committee also heard FTB’s CalFile realignment request, which would return most of the direct-file-related resources to the General Fund while retaining a smaller staff to improve CalFile, and the California Arts Council’s request to reauthorize the Keep Arts in Schools voluntary contribution fund, which members and advocates supported despite relatively modest annual donations. The hearing continued with GoBiz proposals on civic media funding, CA RISE reappropriation, and a semiconductor facility reversion, with the LAO supporting the latter two and members raising questions about the civic media program’s scope, outreach, and inclusion of broadcast and ethnic media.

Transcript Highlights:

• Tax preferences confer reduced tax liability upon a designated class of taxpayers.
• Tax preferences confer reduced tax liability upon a designated class of taxpayers.
• ; B&O tax credits for qualifying expenditures; and property taxes and sales and use tax exemptions for
• So my understanding is that there's more than one aerospace tax and tax preference.
• don't pay B&O tax.

Summary: The House Finance Committee held public hearings on two bills. HB 2730 would clarify how JLARC evaluates the effectiveness of existing aerospace tax preferences by requiring a rolling five-year comparison of Washington aerospace employment with other states and asking JLARC to consider broader aerospace-sector changes and economic conditions. The prime sponsor and labor testifiers said the bill would add needed clarity and accountability for major tax investments supporting aerospace jobs. A committee question raised whether JLARC would be directed to make recommendations for improving the incentive, and staff and the sponsor said the bill does not specifically require that. HB 2713 would impose a 1% B&O tax surcharge, beginning July 1, 2026, on operators of private detention facilities with more than $1 million in annual Washington gross receipts. The sponsor said the bill is intended to respond to harms associated with private detention and to help fund services and legal support for affected families and communities. A remote testifier urged a much higher surtax on GEO Group, which operates the Northwest Detention Center, while county representatives testified that the bill as written could unintentionally apply to Martin Hall, a juvenile facility in Spokane County that is publicly governed and operated day-to-day by a nonprofit contractor. They asked for an exemption for Martin Hall, and the sponsor said that inclusion of nonprofits was not intended and that she would work with them on amendments. No votes were taken on either bill. The committee closed testimony on HB 2730 and HB 2713 and then adjourned.

Transcript Highlights:

• It's a cap on the amount of property taxes that the county can levy.
• Because we have a lot of counties that get gross production tax revenue, and they don't seem to have
• There's been a misappropriation by Stark County on taxing their people.
• There's been a misappropriation by Stark County on taxing their people.
• We're going to take the money away from Stark County, but they're still going to levy the tax?

Summary: The committee was called to order, the Pledge of Allegiance and prayer were offered, and the minutes from the previous meeting were approved. Members then received a memo summarizing major audit items and began hearing audit presentations from the State Auditor’s Office and private auditors on a range of state agencies and organizations. Several audits were reported as clean, including the Bank of North Dakota, the North Dakota Guaranteed Student Loan Program, the Office of the Governor, the Office of the State Treasurer, the Office of Management and Budget, the Department of Transportation’s flexible transportation fund, Lake Region State College, and the Department of Environmental Quality. The North Dakota Stockmen’s Association also received an unmodified opinion, though repeat findings were noted for limited segregation of duties and financial statement preparation due to its small staff. The Council on the Arts audit found two findings: payroll charged to federal awards without adequate timekeeping records, and unallowable expenditures from a restricted cultural endowment fund. The Department of Public Instruction audit identified unsupported scholarship applications in the paraprofessional-to-teacher program, though additional testing showed the funds were used for their intended purpose. The most extensive discussion centered on the North Dakota Racing Commission audit, which identified four findings: overspending the promotion fund’s 25% operating limit, grant conditions not being met, improper Breeders Fund awards, and improper procurement for advertising services. Racing Commission director Bruce Johnson acknowledged complacency and weak controls, said the agency would tighten procedures, and explained that the commission had since worked with procurement and would follow the rules more closely. Auditors also explained that the commission would now be audited every two years because of the findings. Another major discussion involved the University of North Dakota School of Law, where auditors found a lack of documentation supporting admissions decisions for post-baccalaureate programs. UND officials said they remain in good standing with the American Bar Association but agreed better documentation and tools are needed; the committee pressed for more transparency and follow-up on admissions criteria. The committee also received an update on Dakota College at Bottineau, where Minot State University reported that bank reconciliations had been brought current after a significant backlog and would now be maintained through shared services. Members requested a written follow-up report on the issues and corrective actions. Finally, the North Dakota Fair Association explained that its foundation has been dissolved and remaining funds were transferred to another nonprofit for continued support of the state fair, and the Department of Public Instruction provided an update on school meal debt, saying the reported amount was about $1.1 million from a partial district survey and that debt remains a local issue, though it could be revisited if school meal funding changes.

Transcript Highlights:

• I pay federal tax, state tax, and self-employment tax.
• </c><00:17:45.760><c> tax,</c> I pay federal tax, state tax, I pay federal tax, state tax, um<00:17:48.720
• </c> income tax. income tax.
• All of this tax burden would be shifted to other county taxpayers. As Mr.
• All of this tax burden would be shifted to other county taxpayers. As Mr.

Committee: Senate Taxes

Transcript Highlights:

• districts in the Fillmore special taxing districts in the Fillmore County<00:04:12.000><c> disparity
• That tax is coming to an end, and this building, this structure that is owned by the county, we're going
• That tax is coming to an end, and this building, this structure that is owned by the county, we're going
• That tax is coming to an end, and this building, this structure that is owned by the county, we're going
• That is owned by the county, we're going to install a new tax to replace that one.

Committee: Senate Taxes

Transcript Highlights:

• Just one question: does the county tax assessor-collector...?
• County Judge Walker.
• They're not paying Granbury City taxes. Not if you live in Hood County.
• Anytime we've called 9-1-1, we get Travis County, for which we do pay taxes.
• We get Travis County Fire Department and Travis County EMS.

Bills: SB1079 , SB1243 , SB1504 , SB1579 , SB1708 , SB1844 , SB1851 , SB1879 , SB1921 , SB1951 , SB2237 , SB2238 , SB2406 , SB2407

Committee: Senate Local Government

Transcript Highlights:

• I'm a county commissioner from Clay County.
• Carlton County has historically been one of the five highest-tax counties in the state of Minnesota,
• of the five highest tax been one of the five highest tax counties<00:15:30.560><c> in</c><00:15:30.680
• suggestion that counties absorb these costs by simply going back to the property tax.
• Shifting costs to the counties will directly impact property taxes and will affect the most vulnerable

Transcript Highlights:

• First, new sales tax exemption certificates may not be issued on or after July 1, 2026, for rural county
• The rural tax preference is for 29 counties. The urban one is for three.
• sales tax.
• That's 13% of the entire tax base in our two-county area, and that investment supports our school districts
• tax.

Summary: House Finance held public hearings on three Senate bills. SB 6129 would raise cigarette taxes, replace current nicotine/vapor product taxes with a 95% tax on nicotine products, and adjust revenue distributions to the Andy Hill Cancer Research account, the Foundational Public Health Services account, and a youth prevention account; staff and supporters said it would correct an unintended loss of public health funding and reduce youth nicotine use, while opponents argued it would be highly regressive, harm retailers and wholesalers, and push sales into illicit markets. SB 6231 would repeal the data center sales tax exemption for refurbishment and end replacement server equipment eligibility; the sponsor and staff said it would raise roughly $200 million and remove an obsolete preference, while labor, port, business, and data center representatives opposed it, citing lost jobs, reduced investment, and concerns about upsetting existing contracts and rural economic development. SB 6228 would repeal the preferential B&O rate for warehousing and reselling prescription drugs and create a lower preferential rate for critical access pharmacies; the sponsor said it would restore horizontal equity in the tax code and offset impacts on rural pharmacies, but pharmacy groups, wholesalers, retailers, and business organizations warned it would raise medication costs, worsen pharmacy closures, and be passed through to patients. The committee heard extensive public testimony on all three bills. Supporters of SB 6129 included public health, cancer, pediatric, and emergency medicine advocates who emphasized youth prevention, cessation funding, and long-term health savings; opponents included tobacco, vape, retail, and business groups who said the bill would increase black-market activity and burden small businesses. SB 6231 drew opposition from construction trades, ports, local governments, chambers, and data center interests, who argued the tax preference supports ongoing construction, permanent jobs, and local tax bases, while committee questions focused on whether the bill would affect existing refurbishment contracts. SB 6228 was opposed by pharmacy associations, independent pharmacists, wholesalers, grocery retailers, and AWB, who said the tax increase would be passed through and could accelerate pharmacy desert conditions; the sponsor and supporters framed the bill as a correction to an outdated preference and a way to protect critical access pharmacies. No votes were taken; each hearing was closed, and the chair announced amendment requests were due Thursday at 5 p.m. and amendments posted by Friday at 5 p.m.

Transcript Highlights:

• It's a cap on the amount of property taxes that the county can levy.
• Because we have a lot of counties that get gross production tax revenue. And they don't see.
• There's been a misappropriation by Stark County on taxing their people.
• There's been a misappropriation by Stark County on taxing their people.
• We're going to take the money away from Stark County, but they're still going to levy the tax?

Committee: Joint Legislative Audit and Fiscal Review Committee

Summary: The committee convened, approved the prior meeting minutes, and received a memo summarizing major audit items. The State Auditor’s office and outside auditors then presented a series of audits, many of which were clean with unmodified opinions and no findings, including the Bank of North Dakota, the Guaranteed Student Loan Program, the Office of the Governor, the State Treasurer, the Office of Management and Budget, the Department of Transportation, the Department of Environmental Quality, Lake Region State College, and the Office of the Governor. The North Dakota Stockmen’s Association audit was also clean overall, but it repeated findings about limited segregation of duties and auditor assistance in preparing financial statements, which the auditor said were expected to continue because of the organization’s small size. Committee members asked about out-of-state board addresses, and the association explained those members were North Dakota residents using South Dakota mailing addresses. Several audits did include findings. The Council on the Arts audit identified two issues: payroll charged to federal awards without supporting time records, and $12,825 in Cultural Endowment Fund spending that was not allowable under state law, including staff training, retreats, and executive director candidate travel. The Department of Public Instruction audit found unsupported scholarship applications in the paraprofessional-to-teacher program, but additional testing confirmed the funds were credited properly and students completed required school district work, so no improper payments were identified. The University of North Dakota audit found a lack of documentation and transparency in School of Law admissions decisions; the auditor said the law school used a holistic process but did not keep notes or evaluation tools to show why applicants were admitted, waitlisted, or denied. UND leadership said the school is in good standing with the American Bar Association and agreed better documentation is needed, and the auditor said the issue was the missing documentation, not ABA accreditation itself. The most extensive discussion centered on the North Dakota Racing Commission audit, which found four findings: overspending the promotion fund’s 25% operating cap, grant conditions not being met, improper breeder fund awards, and improper procurement. The auditor said promotion fund spending exceeded the cap by $327,447 and the fund balance dropped sharply over the audit period. Racing Commission director Bruce Johnson said the agency had become complacent, that grant requests were treated as routine, and that controls and documentation need to be tightened. He also explained that the breeder fund overpayments involved two horses whose ownership transfers were not properly documented before racing, and that the procurement issue stemmed from an advertising contract that proceeded without proper written procurement procedures after a misunderstanding with the State Procurement Office. The auditor said the Racing Commission will now be audited every two years because of the findings. The committee also received updates on Dakota College at Bottineau’s bank reconciliations, which Minot State University said had been brought current after an 18-month backlog, with only one account still needing cleanup; members asked for a written report on the corrective actions. The North Dakota Fair Foundation was reported to have dissolved, with remaining funds transferred to another nonprofit account for continued support of the state fair. Finally, the Department of Public Instruction provided an update on school meal debt, revising the earlier estimate to about $1.1 million based on incomplete district survey responses, and said the Anti-Lunch Shaming law likely increased meal debt because schools must feed students regardless of account balance. Members discussed the need for a more accurate year-end debt figure and possible future reporting at a later committee meeting.

Transcript Highlights:

• for the IRS, 99% of tax returns that are received by a Franchise Tax Board... 99% of tax returns that
• are received by Franchise Tax Board are from professional tax software.
• For the Franchise Tax Board, what we try to focus on is completing tax return processing in the tax year
• County home.
• County.

Summary: The Assembly Budget Subcommittee on Accountability and Transparency held a hearing focused on three issues: federal funding cuts and delays, possible state revenue impacts from reduced IRS enforcement, and the fiscal effects of AB 218 on local governments. The Franchise Tax Board described how state and federal tax systems are closely linked, how most returns are filed electronically through software, and how FTB relies on IRS information sharing for compliance, fraud prevention, offsets, and nonfiler work. Members raised concerns that federal staffing cuts at the IRS could weaken audits of large corporations and reduce California revenue, and asked about VITA and ITIN filers; FTB said it was not aware of VITA reductions, noted ITIN returns are processed the same as other returns, and said ITIN filing appeared slightly down this year. The Department of Finance said it is monitoring federal developments, summarized the continuing resolution and reconciliation process, and noted that California lost nearly $940 million in earmarked federal projects under the CR, while major federal budget decisions remain uncertain until the President’s budget and later congressional action. The University of California reported substantial federal pressure on research, student aid, and health care. UC said hundreds of millions of dollars in federal awards have already been canceled, with additional threats to NIH and DOE facilities-and-administration rates, graduate fellowships, student loan repayment plans, international student visas, Pell Grants, and Medicaid/Medi-Cal funding. Committee members pressed UC on the effects of DEIA-related federal restrictions, the loss of clinical trials and research staff, and the impact on low-income students and patients. UC said it is pursuing litigation with the Attorney General and other institutions, but emphasized that court action is only a temporary solution and that sustained state and private support may be needed. The second panel addressed the fiscal consequences of AB 218, which extended the statute of limitations for childhood sexual abuse claims against public agencies. FCMAT presented a report with 22 recommendations, including better statewide data collection, financing mechanisms, a possible victims compensation fund, and prevention measures. Los Angeles County described a tentative $4 billion settlement tied to AB 218 claims, saying it will require reserves, borrowing, and long-term annual payments through 2050, while also forcing curtailments and cuts to vacant positions to preserve services. Members discussed insurance pools, retroactive premiums, unidentified future claims, and the need for a compensation fund or other financing tools. No formal votes were taken; the hearing concluded with public comment, including testimony from local health officials about nearly $400 million in terminated federal public health grants and the resulting layoffs and service impacts.

Transcript Highlights:

• On May 22nd, over 50,000 residents of Orange County were evacuated due to the issue of Northern County
• The post-production tax credit is not tied to the $750 million budget for the motion picture tax credit
• I don't see this tax credit as a liability. I see this tax credit as an investment.
• definition of tax elsewhere.
• complex tax appeals.

Summary: The committee heard and advanced several tax-related bills, beginning with AB 760, which would exempt settlement payments tied to the Garden Grove chemical incident from California income tax. The author and a school district trustee described evacuations, school closures, and losses to residents, businesses, students, and staff, arguing the payments should make victims whole rather than be taxed. There was support from the Orange County Board of Supervisors, no opposition, and the bill passed 3-0 to Appropriations, with committee amendments accepted. Members then heard AB 2319, creating a California post-production tax credit for film and television work done in-state, even when principal photography occurred elsewhere or the project did not receive the existing film credit. The author and supporters from the Motion Picture Editors Guild, California Post Alliance, and others said post-production jobs and facilities are leaving California and that the bill would help retain high-wage work; opponents were not present. The committee members generally supported the measure, and it passed 3-0 to Appropriations. AB 2186 followed, excluding future reparations benefits for descendants of formerly enslaved people from state income tax. The author and NAACP California-Hawaii State Conference said taxing such benefits would undermine reparative justice; there was no opposition, and the bill passed 3-0. The committee also heard AB 762, which would ban the sale of disposable nicotine vapes and add enforcement tools. Supporters, including waste, recycling, local government, and public health groups, said disposable vapes create fire hazards, waste problems, and costs for local agencies; opponents argued the bill would mainly eliminate the legal market while leaving illicit products untouched and urged stronger enforcement instead. The author accepted committee amendments adding CDTFA enforcement, but the bill was not voted on because a motion was pending and members were absent. Later, AB 1519, AB 2172, AB 2222, AB 1793, AB 2089, and AB 1265 were heard and each received support from committee members and passed 2-0 or 3-0 to Appropriations, with amendments accepted where noted. AB 1519 clarified that the 20-year tax collection statute of limitations should not be reset by later fees or penalties; AB 2172 would let large counties use a single assessment appeals commissioner for complex property tax appeals; AB 2222 would create a temporary tax credit for local news organizations to retain and hire journalists; AB 1793 would authorize symmetrical cash rounding to the nearest nickel after the federal penny phaseout; AB 2089 would streamline the welfare exemption filing process for affordable housing; and AB 1265 would extend and revise the historic building tax credit to encourage adaptive reuse for housing and mixed-use projects.

Transcript Highlights:

• WITH THOSE REVENUES, COUNTIES WILL BE GETTING IN 2026 A CREDIT AGAINST COUNTY AD VALOREM TAXES TO BE
• tax relief for Orange County residents in whatever combination the Board of County Commissioners of
• Development Taxes, mostly paid for by the 10 million visitors to Palm Beach County each year.
• No matter what we do with property tax or homestead, The county would raise our millage.
• I think most counties have some form of tourism tax.

Bills: HB 118 , HB 388 , HB 114 , HB 205 , HB 2789 , HB 2791 , HB 499 , HB 2960 , HB 3163 , HB 3135 , HB 2427 , HB 1618 , HB 1672 , HB 1722 , HB 1338 , HB 787 , HB 2618 , HB 879 , HB 1126 , HB 4134 , HB 3513 , HB 718 , HB 1536 , HB 1445 , HB 1640 , HB 1893 , HB 1734 , HB 3229 , HB 3306 , HB 1276 , HB 3272 , HB 3276 , HB 3516 , HB 4145 , HB 1585 , HB 4810 , HB 2989 , HB 2558 , HB 3014 , HB 2742 , HB 1695 , HB 29 , HB 125 , HB 145 , HB 171 , HB 255 , HB 50 , HB 363 , HB 116 , HB 491 , HB 1495 , HB 368 , HB 1285 , HB 1905 , HB 2002 , HB 917 , HB 2723 , HB 2067 , HB 1238 , HB 745 , HB 1188 , HB 1606 , HB 2003 , HB 2147 , HB 2355 , HB 2546 , HB 2495 , HB 2818 , HB 2249 , HB 3228 , HB 3240 , HB 1507 , HB 658 , HB 1748 , HB 1851 , HB 1922 , HB 2798 , HB 107 , HB 1587 , HB 3684 , HB 118 , HB 388 , HB 114 , HB 205 , HB 2789 , HB 2791 , HB 499 , HB 2960 , HB 3163 , HB 3135 , HB 2427 , HB 1618 , HB 1672 , HB 1722 , HB 1338 , HB 787 , HB 2618 , HB 879 , HB 1126 , HB 4134 , HB 3513 , HB 718 , HB 1536 , HB 1445 , HB 1640 , HB 1893 , HB 1734 , HB 3229 , HB 3306 , HB 1276 , HB 3272 , HB 3276 , HB 3516 , HB 4145 , HB 1585 , HB 4810 , HB 2989 , HB 2558 , HB 3014 , HB 2742 , HB 1695 , HB 609 , HB 630 , HB 420 , HB 767 , HB 1708 , HB 1404 , HB 2457 , HB 140 , HB 227 , HB 913 , HB 2198 , HB 2763 , HB 1261 , HB 1135 , HB 1318 , HB 2358 , HB 2765 , HB 2735 , HB 3307 , HB 1242 , HB 2842 , HB 333 , HB 201 , HB 694 , HB 2415 , HB 155 , HB 272 , HB 405 , HB 519 , HB 1136 , HB 1275 , HB 1437 , HB 1532 , HB 1675 , HB 1868 , HB 1888 , HB 1990 , HB 2286 , HB 2523 , HB 3129 , HB 3251 , HB 3354 , HB 3479 , HB 3803 , HB 3804 , HB 3805 , HB 3806 , HB 3887 , HB 4163 , HB 4238 , HB 1240 , HB 1842 , HB 2029 , HB 2622 , HB 3255 , HB 654 , HB 4643 , HB 4945 , HB 3611 , HB 3724 , HB 3623 , HB 3810 , HB 4127 , HCR 78 , HCR 12 , SB 767

Transcript Highlights:

• It's a cap on the amount of property taxes that the county can levy.
• revenue, because we have a lot of counties that get gross production tax revenue, and they don't seem
• Because we have a lot of counties that get gross production tax revenue, and they don't seem to have
• There's been a misappropriation by Stark County on taxing their people.
• We're going to take the money away from Stark County, but they're still going to levy the tax?

Committee: Joint Legislative Audit and Fiscal Review Committee

Transcript Highlights:

• different tax years.
• Our B&O tax code is as regressive as sales tax is to individuals.
• Raising taxes didn't solve the problem. There is no tax..."
• It does not increase or decrease any tax." Eligible for county conservation futures programs.
• And now I'm wondering: so the tribes would be allowed to participate, and the county would levy the tax

Summary: House Finance met in executive session on Gross Substitute Senate Bill 6346, the proposed “millionaires’ income tax” package. Staff reviewed the bill and a long list of amendments affecting the new income tax, related business tax changes, and several exemptions and implementation provisions. The committee adopted amendments to exempt diapers from sales tax, allow certain tribal income treatment clarifications, create an advisory group to help implement the tax, move up the repeal date for some business tax changes, and require the measure to go to the voters; several other amendments on federal conformity, agricultural income, pass-through entities, and the marriage threshold were rejected or withdrawn. The committee then adopted the striking amendment as amended and advanced the bill on a 9-6 do pass vote, with supporters arguing it would fund education, health care, child care, and tax relief, and opponents warning about competitiveness, capital flight, and the state’s spending growth. The committee then held a public hearing on Senate Bill 6097, which would add federally recognized Indian tribes as eligible entities for county Conservation Futures Program funding. Staff said the bill would not change the tax levy structure and would have no state revenue impact, while tribal witnesses said it would improve voluntary conservation partnerships for habitat, farmland, and open space. Members asked about the bill’s scope, and staff confirmed it applies only to federally recognized tribes. House Finance also heard Senate Bill 6162, a property tax reform measure that would consolidate the state school levy, expand senior and disability property tax exemptions, raise income thresholds, and simplify the application process with a standard deduction. The prime sponsor and county assessors supported the bill as a way to help seniors, disabled persons, and disabled veterans stay in their homes and reduce administrative burden, while several testifiers opposed it as a tax shift that would raise costs for others and potentially strain local revenues. Finally, the committee heard Senate Bill 6113, an administrative and technical tax cleanup bill related to last year’s tax changes; the Department of Revenue supported it and noted a possible clarifying amendment, while nonprofits, schools, libraries, health care groups, workforce training providers, and trade associations asked for additional exemptions for live presentations and related educational activities. The chair announced that Senate Bill 6097 would be added to Monday’s executive session, Senate Bill 6114 was removed, and amendments for Monday’s bills were due by 5 p.m. that day.

Transcript Highlights:

• for property tax purposes.
• </c> find themselves facing a property tax find themselves facing a property tax bill<00:03:54.439><c
• that are over 300,000, once you get outside of the seven-county metro, the property tax shift is minimized
• and</c><00:08:46.560><c> those</c> county by county breakdown and those county by county breakdown and
• </c> seven County Metro the property tax seven County Metro the property tax shift<00:08:53.560><c> is

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:

• tax in the account tax-free over a period of time.
• tax credit program.
• Competes tax credit.
• You know, in my county, Alameda County, we are not a pro-housing designation county.
• Some counties have. Some haven't. Some counties have. Some haven't. Some counties have.

Transcript Highlights:

• on cities and counties.
• on cities and counties.
• on cities and counties.
• to actually reduce their and counties to actually reduce their property<00:03:03.680><c> tax</c><00:
• </c> property taxes? property taxes?

Transcript Highlights:

• But it's to cities, to counties, all political subdivisions, school districts, and all taxing subdivisions
• If they can consolidate in my home county, then Harris County is more than those populations.
• The cities and counties go later, and some of them, like Harris County, don't even put their tax bills
• And mailing this out for an urban county is 0.2 to 0.25 percent of our tax rate, and if y'all strap me
• You know, this information just on the tax look in urban counties is about half where the tax rolls are

Bills: HB17 , HB23

Committee: Senate Local Government