Transcript Highlights:

• The first is the motor vehicle excise tax and the second is the gross receipts tax.
• However, there can be a tribal motor vehicle excise tax.
• We passed that exemption for if a tribal excise tax is paid, we don't charge the state on top of it.
• The first is the motor vehicle excise tax and the second is the grocery seats tax.
• However, there can be a tribal motor vehicle excise tax.

Bills: SB22 , SB310

Committee: Senate Senate Conservation

Summary: The committee first heard Senate Bill 22, which would allow certain motor vehicle manufacturers, including electric vehicle companies, to be licensed as dealers in New Mexico and sell/service directly to consumers. Supporters, including the sponsor’s office, Taxation and Revenue, Rivian, and clean-energy advocates, argued the bill would expand consumer choice, lower prices, improve EV access and service in-state, and bring new investment and jobs without eliminating existing franchise dealers. Opponents, including auto dealer associations, chambers of commerce, and franchise owners, argued the measure would weaken the franchise system, harm local businesses and jobs, reduce community reinvestment, and could disadvantage rural and tribal communities. After questions about trade-ins, tribal land sales, tax effects, and economic impacts, the committee voted to table SB 22 by a vote of 7-2. The committee then took up Senate Bill 310, which appropriates $1.1 million to the New Mexico Environment Department for planning, design, and construction improvements to the Mora mutual domestic water system. Supporters described aging water and wastewater infrastructure, an AOC related to discharge into the Mora River, flood and fire impacts, and heavy-metal contamination concerns in private wells. They said the project is part of a larger effort to address inflow and infiltration, improve treatment capacity, and protect public health, with additional funding already sought through the Clean Water State Revolving Loan Fund and the Water Trust Board. Some senators questioned whether the request should instead go through existing water funding programs and raised concerns about piecemeal financing and the Environment Department’s role, but others supported the need for the project. The committee approved SB 310 on a 5-3 due-pass vote.

Transcript Highlights:

• We lose the excise tax. We lose the sales tax. We lose the transportation tax.
• We lose the excise tax, we lose the sales tax, we lose the transportation tax, and the biggest thing,
• Why couldn't they do the same with the excise tax?
• If they're not, the brewery is paying the excise taxes.
• So the brewer has a responsibility then to collect and remit the excise tax.

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

Summary: The Commerce Committee first heard Senate Bill 1020, which would let the Department of Revenue award a Missouri license office contract without rebidding if no qualifying bids are received on the initial solicitation. Senator Sandy Crawford and Director of Revenue Trish Vincent said the change would help keep rural license offices open, reduce repeated bidding delays, and allow the department to work with local entities such as chambers, counties, or cities when smaller offices are hard to staff profitably. Members asked about the process, the challenges in low-volume communities, and whether more online services could eventually reduce the need for offices; no opposition testified, and the hearing concluded without a vote. The committee then took up House Bill 3093, which would extend Missouri’s direct-to-consumer shipping framework from wineries to distillers and breweries. Sponsor Rep. Nick Kimball and many supporters argued the bill would create parity for Missouri craft producers, preserve age-verification and signature requirements, and keep tax collection and other safeguards in place. Supporters included distillers and brewers who said the current system favors wine, limits small Missouri businesses, and makes it harder to reach customers who want products shipped after visiting a taproom or distillery. Several members also raised questions about enforcement, the three-tier system, and whether the bill could be narrowed or paired with other changes. Opponents, including representatives of wholesalers, grocers, convenience stores, and beer wholesalers, argued the bill would weaken the three-tier system, increase competition from out-of-state producers, and create enforcement and tax-collection problems. They said wine shipping has shown compliance and auditing difficulties, cited concerns about underage access and online ordering, and urged the committee to preserve the existing distribution structure or strengthen wine-shipping rules before expanding them. Supporters countered that alcohol shipments are already tightly regulated, that direct shipping is already occurring in other forms, and that the bill would simply add another regulated avenue for Missouri-made beer and spirits. The hearing ended after extensive testimony and questions, with no final committee action reported in the transcript.

Transcript Highlights:

• I'm the Nueces County Tax Assessor Collector, and I would like to testify for this bill.
• Kevin Kieschnick, and I'm the Nueces County Tax Assessor Collector.
• County is to allow taxpayers to pay their property taxes in four installments.
• Communities like mine in Bell County, Texas. For brewers, why should we get the tax relief?
• The Tarrant County Tax Appraisal District said, "We can't help you." I reached out to Omo.

Bills: HB249 , HB 1186 , HB2313 , HB2408 , HB2508 , HB2730 , HB2974 , HB3045 , HB3232 , HB3336 , HB3710 , HB4044 , HB4236 , HJR133 , HB249

Committee: House Ways & Means

Transcript Highlights:

• REET, the real estate excise tax, applies to real estate transactions, including the sale of property
• And that's what this bill does when it comes to the real estate excise taxing. Thank you.
• And that's what this bill does when it comes to the real estate excise taxing. Thank you.
• In this bill, you have purposely struck out the people's vote on an excise tax.
• This is considered a real estate excise tax on the sale of the home. Thank you.

Summary: The Senate Committee on Local Government heard staff briefings, sponsor testimony, and public testimony on three bills. Senate Bill 6242 would require counties to enter shared stewardship agreements with federal land managers, such as the U.S. Forest Service, to maintain fuel breaks along roads on federally owned land and include revenue-sharing for timber sales. Sponsor Senator Braun said the bill is intended to improve wildfire prevention, protect transportation corridors, and create a possible funding source for rural counties. County representatives supported the concept but noted concerns about the bill’s timber-revenue condition and whether it could be enforced if a federal agency declined to agree. Senate Bill 6211 would remove the voter-approval requirement for real estate excise tax 2 (REET 2) in counties and cities that voluntarily plan under the Growth Management Act, aligning them with jurisdictions that are required to fully plan. Supporters, including the City of Walla Walla and the Association of Washington Cities, said the bill would create fairness and consistency and provide local governments with more tools for capital projects such as sidewalks, ADA improvements, transportation, and utilities. Opponents from Washington Realtors and Washington Citizens Against Unfair Taxes argued the bill would raise housing costs and eliminate voter approval for a tax increase. The committee also heard concerns about property values and whether the bill would affect home prices or local tax burdens. Senate Bill 6234 would prohibit cities, counties, and water-sewer districts from banning sewage grinder pumps for new residential buildings in certain situations where gravity sewer is impractical, such as steep terrain, low-lying lots, or long distances from sewer lines. The sponsor said the bill is meant to help infill development and housing production in urban growth areas by making a lower-cost sewer connection option available. Cities and sewer districts testified that grinder pumps are already allowed in many cases, but they opposed the bill’s prescriptive language and preemption of local standards, citing long-term maintenance, operational, and ratepayer concerns. No votes or final committee actions were taken on any of the bills during the hearing.

Transcript Highlights:

• there's some excise taxes on special products.
• All right, next is the gaming excise tax on slide 11.
• The gaming excise tax is paid in lieu of any other tax.
• Okay, next on slide 12, we'll talk about our newest excise tax: the cannabis excise tax.
• Okay, next we have the motor vehicle excise tax.

Committee: House Revenue Stabilization & Tax Policy Committee

Transcript Highlights:

• </c> that's tax dollars that's being spent. that's tax dollars that's being spent.
• The gentleman from Pike County mentioned what you don't have in Pike County. What was that again?
• The gentleman from Pike County mentioned what you don't have in Pike County. What was that again?
• The gentleman from Pike County mentioned what you don't have in Pike County. What was that again?
• Pike County.

Bills: HB245 , SB16 , SB59 , SB62 , SB79 , SB88 , HB245 , SB16 , SB59 , SB62 , SB79 , SB88

Committee: Senate Finance and Taxation Education

Keywords: inhalants, controlled substances, butyl nitrite, nitrous oxide, amyl nitrite, health, public safety, SB16, four-point restraint, hog-tie, hog tie, prone restraint, law enforcement, police, sheriff, use of force, restraint techniques, positional asphyxia, arrest procedures, detention

Transcript Highlights:

• There is also a 1% voter-approved real estate excise tax specific to counties that must be used exclusively
• As of 2024, only San Juan County imposes this conservation area real estate excise tax.
• As of 2024, only San Juan County imposes this conservation area real estate excise tax.
• Turning to the bill before you, counties and cities may impose an excise tax on cannabis sales in the
• The current excise tax is an ad valorem tax.

Summary: The Ways and Means Committee held a public hearing on multiple bills, beginning with a motion to suspend the five-day notice rule for a long list of Senate bills, which passed on a voice vote. The committee first heard Substitute Senate Bill 6026, a governor-request housing bill that would require cities and counties over 30,000 population to allow residential uses in commercial and mixed-use zones, limit mixed-use/ground-floor commercial requirements in some areas, and allow added height where such requirements are imposed. The lieutenant governor testified strongly in support, arguing the bill would add needed housing capacity without requiring ground-floor retail burdens. The hearing on SB 6026 was then suspended so the committee could move through the agenda. The committee then heard Senate Bill 6294, a broad local government finance measure with eight parts, including expanded uses for certain REET revenues, a new county public utility tax, a new local sales tax for children and family services, expanded housing-related tax uses, changes to county levy structure, longer lid lift periods, and expanded use of rental car tax revenue. Local government, housing, and public health witnesses largely supported the bill, emphasizing flexibility for affordable housing, rental assistance, children’s services, and county fiscal stability. Opponents, including wireless industry, water/sewer district, auto dealer, realtors, energy, and cannabis representatives, objected to specific tax provisions as regressive, costly, or likely to raise consumer prices. Several witnesses requested amendments, including adding public health clinic funding and flood recovery language from House bills. The committee also heard Substitute Senate Bill 5400 on local news sustainability, which would create a state grant program funded by a surcharge on large search engines and social media platforms to support journalism jobs and the Murrow Fellowship program. News organizations, the League of Women Voters, open government advocates, and local journalism supporters testified in favor, saying local news is essential to civic life and that the bill would help sustain reporting without using general fund dollars. Technology industry representatives opposed the bill, arguing it unfairly singles out tech companies and could face legal challenges. The committee then heard Senate Bill 6211, which would let opt-in GMA jurisdictions impose REET-2 without voter approval; cities and counties supported it as a parity and infrastructure funding measure, while Realtors opposed the loss of voter approval. Senate Bill 5650, authorizing local cannabis excise taxes, drew support from some local officials but strong opposition from cannabis businesses, which argued Washington’s cannabis taxes are already too high and drive sales to the illicit market. Senate Bill 6033, waiving penalties and interest for taxpayers who failed to collect new sales tax on certain services, was supported by NFIB as a compliance and fairness measure. Senate Bill 6297, exempting temporary staffing services for nonprofit behavioral health providers from sales tax, drew strong support from behavioral health organizations citing workforce shortages and unsustainable costs. Finally, Senate Bill 6343, extending and expanding tax relief for disaster-damaged property and repairs, was presented as aid for flood recovery; local officials testified in support. No final committee votes on the bills were taken in the portion of the meeting provided.

Transcript Highlights:

• taxes.
• So, in your opinion, well, this bill, I guess it would be a way to collect these excise taxes, but also
• I guess it would be a way to collect these excise taxes, but also a way to charge landing fees.
• Association, do you feel like there are a lot of uncollected or unpaid excise taxes when it comes to
• It's not even a gas tax. It's not even a car tax. It's a road usage tax.

Bills: SB1312 , SB1323 , SB1599 , SB1863 , SB1932 , SB1950 , SB1956 , SB1958 , SB1966 , SB1970 , SB2052

Committee: Senate Aeronautics and Transportation

Summary: The Senate Aeronautics and Transportation Committee heard several memorial highway and bridge designation bills and one substantive aviation/tax bill. The committee advanced SB 1323 (Marty Grisham memorial signage), SB 1863 (John Skelly Memorial Highway), SB 1932 (allowing a trucking company owner or other designated representative to appear without a lawyer in certain Corporation Commission administrative hearings), SB 1956 (Captain David Ward Neely Memorial Highway), SB 1970 (Private Earl Maggerton Memorial Bridge), and SB 1599 (Arlen Francis Wetzel Memorial Bridge). These measures were generally presented as honorary designations or procedural changes, with brief questions mainly about mileage or fiscal impact, and they all passed committee by voice or roll-call votes. The most extensive discussion centered on SB 1950, which would prohibit government entities or private vendors from using ADS-B aircraft tracking data to calculate, generate, or collect fees. Supporters argued that using the federally required safety system for fee collection encourages pilots to turn off ADS-B, undermining air safety, and said airports can collect fees through other methods. Opponents and committee members raised concerns that the bill could hinder lawful tax and fee collection, including aircraft excise taxes and landing fees, and that it might reduce revenue for airports and the state. After testimony from the bill author, an aviation association representative, and the Oklahoma Department of Aerospace and Aeronautics director, the committee laid the bill over at the author’s request. The committee also heard SB 1312, which would have allowed owners of electric and hybrid vehicles to prepay the annual road-use fee over time rather than paying it in one lump sum. The author said the goal was to reduce the burden on low-income drivers and small businesses, but concerns were raised about fiscal impact and implementation. After title was stricken to allow further work, the bill failed on a 5-6 vote. The chair also announced that some items would be laid over and that the committee would not meet the following week.

Transcript Highlights:

• Also on vape products, which currently does not have an excise tax, and then a 2% tax, if I remember
• Also on vape products, which currently does not have an excise tax, and then a 2% tax, if I remember
• Even though we just did a bill on the floor that had excise taxes going that way, marijuana went in the
• than vape products, because vape products are just taxed at the sales tax rate and there's no excise
• But when it comes to vaping, so the state of Missouri, we do not charge an excise tax when it comes to

Committee: House Veterans and Armed Forces

Summary: The Special Committee on Veterans heard House Bill 2535 from Representative Don Mayhew, which would provide property tax relief for disabled veterans, Purple Heart recipients, and certain surviving spouses, with the bill’s main distinction being a funding mechanism based on tobacco-related taxes, including a cigarette tax increase and taxes on vape and other tobacco products. Mayhew said the bill is intended to fund the benefit at the state level rather than shifting the burden to counties, and he emphasized that it is a state property tax benefit, not tied to federal veterans benefits. Members discussed whether surviving spouses should keep the benefit if they remarry, whether the language should be narrowed or reduced, and whether dependent children or Gold Star families should be included more broadly. Testimony in support came from veterans and veterans’ advocates who said the bill would help disabled veterans and surviving spouses remain in their homes and would spread the cost statewide instead of leaving counties to absorb it. Some supporters also urged keeping Purple Heart recipients in the bill and expanding protections for surviving spouses and dependent children. One veteran witness said the funding mechanism made the bill more workable for local governments, while another said the benefit should not be reduced if a surviving spouse remarries. Opposition focused mainly on the tax structure. The Missouri Petroleum and Convenience Association opposed the funding mechanism, arguing that cigarettes are already heavily taxed, that Missouri’s border-state competitiveness could be harmed, that federal changes to hemp-derived products could undercut projected revenue, and that voters have rejected prior tobacco tax increases. A small-business witness also objected to the vape and hemp tax burden. The Department of Revenue provided fiscal information, estimating that the bill could raise significant state revenue but also noting that some projected revenue depends on current hemp law and that cigarette-tax increases could reduce cigarette sales and shift purchases to other products. No vote was taken, and the hearing was concluded after testimony.

Transcript Highlights:

• Also on vape products, which currently do not have an excise tax, and then a 2 percent tax, if I remember
• Even though we just did a bill on the floor that had excise taxes going that way, marijuana went in and
• the Constitution... ...excise taxes going that way.
• vape products are just taxed at the sales tax rate, and there's no excise tax to that, that they would
• just taxed at the sales tax rate, and there's no excise tax to that, that they would then transfer to

Committee: House Veterans and Armed Forces

Transcript Highlights:

• Manufactured homeowners must pay the 3.25% motor vehicle excise tax levy. while brick and mortar homes
• The committee sub for Senate Bill 1829 will reduce the motor vehicle excise tax levy on new and used
• It's just that the excise tax right now, actually, it's paid, as I understand, in two different ways.
• Oklahoma collects this excise tax, and then counties will go ahead and collect the ad valorem.
• So, you're telling me that there are people that are paying an excise tax and paying ad valorem yearly

Bills: SB683 , SB1579 , SB1389 , SB1387 , SB1390 , SB1391 , SB2063 , SB1829 , SB2060 , SB1842 , SB1398 , SB1212 , SB2158 , SB102

Committee: Senate Revenue and Taxation

Transcript Highlights:

• Originally there were three taxes: the cultivation tax on the harvested plant, the excise tax on the
• One, it eliminated the cultivation tax, and two, it shifted the excise taxpayer from the distributor
• The payer of the excise tax has shifted from the distributor to the retailer, and the sales tax is still
• intensity of the sustainable aviation fuel, and it's a tax credit against the diesel excise tax.
• But most of their tax liability, we estimate, is in the fuel taxes and sort of the diesel excise tax

Summary: The Assembly Budget Subcommittee on State Administration heard several budget proposals from CDTFA, the Board of Equalization, and the Franchise Tax Board. The first panel focused on cannabis, hemp, flavored tobacco, and related enforcement. CDTFA requested ongoing funding to implement cannabis tax changes, enforce the new intoxicating hemp restrictions and flavored tobacco seizure authority, and continue compliance work. The department said it is targeting illicit product, protecting licensed businesses, and using referrals from the public and lawmakers to focus inspections. The LAO supported some of the proposals but urged the Legislature to treat them as part of a longer-term enforcement strategy and raised concerns about the use of General Fund support for cannabis enforcement. Public testimony on the cannabis item largely supported stronger enforcement and funding for the legal market. The committee also heard CDTFA’s request to reappropriate funds for an upgrade to the CROS tax collection system, which would improve taxpayer services, security, and software maintenance without adding new money. A separate CDTFA proposal would make all delivery network companies, such as DoorDash and Uber Eats, marketplace facilitators for sales tax purposes. CDTFA said the change would reduce confusion for restaurants and improve compliance, while the LAO questioned whether the proposal functioned more like a tax increase because it would also capture service fees. Members raised affordability concerns, but the proposal was framed by the administration as a parity and compliance measure. The subcommittee then considered a governor’s proposal for a sustainable aviation fuel tax credit. Finance argued the credit would help decarbonize aviation and support in-state production, while the LAO recommended rejection, citing cost, uncertainty about environmental benefits, possible diversion of diesel excise tax revenues from transportation programs, and concerns about consistency with voter-approved transportation funding rules. Testimony from airlines, labor unions, airports, and refinery workers strongly supported the credit, emphasizing union jobs, refinery conversions, and emissions reductions, while fuel retailers and some others warned about fiscal risk and higher fuel prices. The chair and some members expressed support for the proposal despite the funding concerns. Finally, the BOE presented an IT modernization project for state-assessed property administration, saying the current system is outdated and manual and that a new system is needed to improve accuracy, cybersecurity, and workflow efficiency, especially with a likely increase in workload from new VoIP assessments. The LAO asked for more justification for the timing, but BOE said the urgency stems from aging systems and growing workload. BOE also requested modest funding to implement SB 293 changes to intergenerational property transfers and wildfire relief guidance, which the LAO did not oppose. The Franchise Tax Board began its presentation on the final phase of its Enterprise Data to Revenue modernization effort, describing the project’s rollout across audit, collections, legal, and filing enforcement workloads and noting it is now in a warranty period.

Transcript Highlights:

• We have considered different options, such as raising the excise tax by 25 cents a drink.
• And then we had opposing legislation that wanted to make an excise tax increase.
• But without an increase on the excise tax, and then a 6% sales tax.
• If they have higher taxes, are we taxing them with excise tax, sales tax?
• And then my last question is: you said that you increased the excise tax from 5% to 6%.

Committee: House Legislative Health & Human Services Committee

Transcript Highlights:

• imposed</c><00:40:58.160><c> on</c> other excise taxes like those imposed on other excise taxes like
• tax, the sales how we apply the excise tax, the sales tax<01:24:44.239><c> on</c><01:24:44.480><c> electricity
• the bus line as an excise tax for driving the bus, but you were taxing the customer, an excise tax for
• ><c> bus,</c><01:40:02.800><c> but</c> an excise tax for driving the bus, but an excise tax for driving
• A municipality, a county cannot enact their own sales tax.

Committee: Joint Revenue

Transcript Highlights:

• Second, land owned by a public corporation acting as a land bank is exempt from leasehold excise tax.
• or leasehold excise tax.
• In addition, the bill exempts all property sales to or by a land bank from real estate excise tax.
• or leasehold excise tax.
• House Bill 2650 concerns notice and effective dates for certain excise taxes.

Summary: House Finance heard several bills and took no recorded votes. HB 2367 would end special tax and emissions exemptions for the Centralia coal plant by limiting its Climate Commitment Act exemption to pre-2026 emissions, removing limits on additional greenhouse gas requirements, and repealing coal sales and use tax exemptions. The sponsor, Rep. Fitzgibbon, said the bill would help keep the plant’s transition to cleaner natural gas generation on track; Climate Solutions supported it, while business and clean-energy groups raised concerns about allowance-market impacts and asked for amendments to adjust the cap-and-invest allowance budget. HB 1974 would authorize public housing authorities, public corporations, and nonprofits to operate as land banks for affordable housing, give them priority for tax-foreclosed properties, and provide property tax, leasehold excise tax, and REET exemptions for land bank transactions. Rep. Hill said the bill was narrowed to reduce fiscal impact and support existing land banking work in Spokane; supporters said it would lower land costs and speed affordable housing development, while questions focused on how public land would be used and whether affordability should be permanent rather than limited to 30 years. HB 2650, a Department of Revenue request, would standardize notice and effective dates for local REET and lodging tax changes and clarify documentation for an affordable housing sales tax deferral. DOR supported the bill as an administrative efficiency measure, and there was no opposition testimony. HB 2626 would raise the premium tax on health maintenance organizations, health care service contractors, and self-funded multiple employer welfare arrangements from 2% to 3%, remove a dentistry-related exemption, and add a new 1% tax on certain disability and group stop-loss insurers. The sponsor said the bill is intended to help fund Apple Health and subsidies amid federal funding concerns; insurers and business groups opposed it as a cost increase likely to be passed on to consumers and employers, while patient and advocacy groups supported the revenue idea but urged that funds be dedicated to subsidies or other health care supports and that pass-through to consumers be prevented.

Transcript Highlights:

• Members, House Bill 4018 grants a county sheriff the exclusive right, when activated by the sheriff,
• House Bill 4018 grants a county sheriff the exclusive right, when activated by the sheriff, to regulate
• , and manage county jails.
• This is just in support of our county sheriffs.
• Cochise County? I concur, Mr. Chair. I was about to say something, although, Mr.

Bills: HB2170 , HB2417 , HB2418 , HB2771 , HB2772 , HB4018 , HCR2059

Committees: Senate Public Safety , Senate Senate Public Safety Committee of Reference

Keywords: procurement, foreign adversary, China, state contracts, information technology, security, speeding, speed limit, traffic enforcement, driver safety, speed inhibiting device, appropriation, law enforcement, task forces, funding, criminal justice, community supervision, rehabilitation, supervision fee, victim compensation

Transcript Highlights:

• recreation tax.
• Essentially, I'd like to give you a quick historical note in terms of the deeds excise tax.
• It's income tax, it's responsible party tax, which can—responsible party tax is non-dischargeable in
• I paid my excise taxes with a little work I'm doing.
• , the occupancy tax, and the ability to have a local vehicle excise tax.

Committee: Joint Joint Committee on Revenue

Summary: The Joint Committee on Revenue held a hybrid hearing on several property and local tax bills. The main focus was H.56, the Municipal Empowerment Act, which the Healey-Driscoll Administration, the Massachusetts Municipal Association, MAPC, and Salem Mayor Dominick Pangallo supported as a package of local options and administrative reforms. Supporters said municipalities need more tools to relieve pressure on property taxes and fund services, citing proposed increases to local meals and lodging taxes, a new local vehicle excise surcharge, senior property tax relief, one-year override flexibility for emergencies, and central valuation of telecom and utility property by DOR. The administration said the bill was based on municipal listening sessions and was intended to give cities and towns optional, not mandatory, revenue tools. Opponents, including the National Federation of Independent Businesses, argued the tax increases would hurt restaurants, hotels, tourism, and small businesses and add to affordability concerns. The committee also heard testimony on H.3211, dealing with deeds excise receipts, from Norfolk County Commissioner Richard Staidi. He said Norfolk County is financially stable but needs additional revenue for major capital needs at its agricultural school, especially a new cafeteria and other aging facilities, and also to support county programs such as veteran transportation services. On S.2020, a bill to allow settlements of tax liability, Greater Boston Legal Services, the Asian American Civic Association, and several individual taxpayers urged creation of a more workable offer-in-compromise process at DOR. They said the current system is too subjective, requires an unaffordable $5,000 threshold, lacks clear standards and appeal rights, and leaves low-income taxpayers stuck with unmanageable debt, license suspensions, or business closures. Supporters said the bill would give both taxpayers and DOR a practical way to resolve liabilities and bring people back into compliance. The committee also took testimony on S.1966, which would require nonprofits selling property to disclose any back-tax obligations to buyers. Senator Peter Durant said the bill was prompted by a personal experience in which a tax bill arrived after a nonprofit property purchase was already completed, and he argued the disclosure would prevent buyers from being surprised by retroactive tax liability. No votes were taken during the hearing, and the chair closed the session after hearing from all scheduled witnesses.

Transcript Highlights:

• excise tax.
• In 2017, Senate Bill 1 increased the excise tax on gas by 12 cents and indexed the tax to inflation starting
• tax and adjusted the excise tax so the change would be revenue-neutral.
• The blue bar represents the estimated sales tax revenue, and the yellow bar represents the excise tax
• blue bar represents the estimated sales tax revenue, and the yellow bar represent the excise tax revenue

Summary: The Senate Committee on Energy, Utilities and Communications held an oversight hearing on managing the transportation fuels transition, fuel pricing, and supply reliability. Chair Allen opened by discussing prior legislation, including SB 1322 and special session measures, that expanded reporting to the California Energy Commission (CEC) and gave the state tools to study gasoline costs, refinery margins, inventories, and potential supply disruptions. He framed the hearing around refinery closures, rising imports, global conflict affecting crude markets, and the need to balance affordability, reliability, and the state’s long-term clean-fuels transition. CEC Vice Chair Siva Gunda, CDTFA Chief Deputy Director Gentian Droboniku, and DPMO Director Ty Miller presented data showing California’s growing dependence on imported crude and refined products, declining in-state refining capacity, and stable-to-tight inventories that are being supported by higher imports. They said the new transparency laws have improved understanding of the market and pointed to the proposed Gateway Pipeline, marine imports, and distribution constraints as important supply issues. CDTFA and DPMO emphasized that retail margins, especially for branded gasoline, have widened significantly, with large price gaps between branded stations and hypermarts/unbranded stations, and that some of the recent price increases were tied to the Iran conflict while earlier spikes were more consistent with localized market behavior and possible price gouging. DPMO also said it is investigating high-priced branded stations, monitoring algorithmic pricing under AB 325, and continuing to analyze diesel spot-market transparency. The CEC and CARB also discussed the Transportation Fuels Transition Plan and the SB 237 assessment, describing them as efforts to plan for a managed decline in fossil fuel demand while protecting workers, communities, and consumers. They said California’s climate goals remain centered on an 85% greenhouse gas reduction by 2045, with continued use of liquid fuels expected but with lower-carbon alternatives, more efficient vehicles, and alternative fuels playing a larger role. Committee members focused heavily on workforce impacts, the need for concrete transition planning, and whether the agencies could provide a clearer picture of what California’s fuel system will look like under the state’s long-term goals. No votes or formal actions were taken during the hearing.

Transcript Highlights:

• At the same time, it increased the per-gallon excise tax.
• and adjusted excise tax so the change would be revenue-neutral.
• As noted, currently the gasoline excise tax in California...
• and adjusted excise tax so the change would be revenue-neutral.
• The blue bar represents the estimated sales tax revenue, and the yellow bar represents the excise tax

Committee: Senate Energy, Utilities and Communications

Transcript Highlights:

• tax exemption.
• tax exemption.
• We have some concerns, I do, with regards to the ever-increasing expansion of taxes—property tax, excise
• tax, real estate tax, et cetera.
• Excise tax, real estate tax, etc.

Summary: The House Housing Committee met to executive several bills, with staff outlining proposed substitutes and key changes before members took a caucus break. House Bill 1974, the land bank bill, was described as removing several original provisions such as county authorization requirements, advisory boards, planning strategies, annual audits, surplus-property prioritization, and a grant program, while adding annual reporting and a real estate excise tax exemption. House Bill 2118, which would limit common interest community associations from imposing more restrictive use covenants than those in place when a unit was acquired, had no amendments but was not moved forward at this time. House Bill 2236, dealing with Housing Finance Commission authority, was explained as clarifying that the commission may not act as a retail mortgage lender or make loans for owner-occupied home purchases or refinancing, except for certain down-payment assistance loans, while adding an intent section to emphasize that the commission is not meant to compete with private lenders. Members debated whether removing language about using public funds could create taxpayer risk or a de facto state bank, but supporters said the changes modernize outdated law and clarify the commission’s role. House Bill 2269, concerning middle housing and on-site sewage systems in LAMIRDs, would restore broader county authority for middle housing in LAMIRDs while limiting sewage-system options based on whether the county is rural or non-rural. The committee voted to report House Bill 1974 out with a due pass recommendation by a 10-7 vote, with several members opposing or voting without recommendation over tax concerns. House Bill 2236 also passed out of committee with a due pass recommendation by a 13-4 vote after similar debate over public-funds language. House Bill 2269 passed unanimously by voice vote, and the committee adjourned after completing its executive action.