Transcript Highlights:

• And I think... ...and meals tax.
• We have provided detailed written submissions for both delivery tax and digital tax. detailed written
• submissions for both delivery tax and digital tax but for these reasons we respectfully urge you to
• But our current alcohol excise taxes are less than a nickel a drink. The public likes this tax.
• It's the same amount of tax.

Committee: Joint Joint Committee on Revenue

Summary: The Joint Committee on Revenue held a hybrid hearing on a large slate of bills related to advertising, economic development, tourism, digital advertising, delivery taxes, and alcohol taxation. The first panel supported H. 3249, which would create a high school trade partnership program linking public schools with private employers, especially in manufacturing, and would offer employers a tax credit for participation. Representative Soder, Uxbridge High School leaders, and others argued the bill would strengthen career pathways, build a skilled workforce, and keep students and jobs in Massachusetts. The committee then heard testimony on H. 3031 and S. 2003 to modernize the Massachusetts Tourism Trust Fund by dedicating an additional share of hotel occupancy tax revenue to tourism promotion. Tourism and hospitality representatives from Cape Cod, Southwick Zoo, and Indian Ranch said the proposal would not raise taxes but would reinvest existing visitor-generated revenue into marketing that supports jobs, local businesses, and municipal tax receipts. A tech-industry coalition opposed several digital advertising tax bills and a delivery tax bill, warning they would raise costs, create uncertainty, and burden consumers, small businesses, and delivery workers. The largest portion of the hearing focused on S. 2029, which would raise the alcohol excise tax by 10 cents per drink and dedicate the revenue to public health programs. Public health experts, advocates, a student prevention leader, and representatives from Jane Doe, Inc. argued the tax would reduce alcohol-related harms, address decades of inflation-driven erosion in the tax, and generate substantial new funding for prevention, treatment, domestic violence services, and community schools. Committee members asked questions about the current tax structure, inflation, and how the proposal compares with neighboring states. No votes were taken during the hearing, and the chair adjourned after public testimony concluded.

Transcript Highlights:

• </c> new tax. new tax.
• </c> omnibus tax bill. omnibus tax bill.
• . tax. tax.
• So, why don't skunks have to pay taxes? taxes? taxes?
• </c> omnibus tax bill. omnibus tax bill.

Committee: House Taxes

Transcript Highlights:

• CORRESPONDING SALES TAX RATES.
• TAX PACKAGE HAS SALES TAX CUTS AS WELL.
• OR PROPERTY TAXES.
• THE TAX BILL THAT IS BEING REVIEWED TODAY IS A TAX BILL WINDOW FOR GUN AND AMMUNITION PURCHASES.
• LET'S GIVE A TAX BREAK ON THOSE. SO, YOU KNOW, TAX BREAK ON GUNS AND AMMO.

Transcript Highlights:

• tax return for this tax.
• I'm willing to pay this tax. I should pay this tax.
• It does not replace sales tax, excise, or B&O tax. It just adds another tax on top.
• The tax is sometimes referred to as a transfer tax.
• The tax is sometimes referred to as a transfer tax.

Summary: The Ways and Means Committee met on February 6, 2026, and first voted to suspend the five-day notice rule for all bills on the agenda. Senators Braun and Gildon objected, arguing the bill needed more public review and that the fiscal note had only just been released, but a roll call vote passed 15-9 and the committee proceeded to Senate Bill 6346. Staff briefed SB 6346 as a proposal to create a 9.9% income tax on Washington taxable income above a $1 million per-household standard deduction, with a $50,000 charitable deduction, apportionment rules for nonresidents and certain professions, quarterly estimated payments, and credits for capital gains tax and certain business taxes. Staff said the tax would begin in 2029 and eventually raise about $3.5 billion annually from roughly 30,000 taxpayers. The bill also would expand the Working Families Tax Credit, create a sales tax exemption for grooming and hygiene products, increase the small business B&O tax credit and filing threshold, and end the B&O surcharge on high-grossing businesses one year early. Members questioned the bill’s constitutionality, its exemption from referendum, treatment of student athletes, natural-resource industries, and whether real estate gains would be captured. Public testimony was sharply divided. Supporters, including labor groups, educators, health care advocates, counties, child care workers, and some business owners and high-income individuals, said the bill would make the tax code more progressive and provide stable funding for health care, education, child care, public defense, and other services, while expanding the Working Families Tax Credit. Opponents, including many small business, construction, housing, and taxpayer advocates, argued the measure would function as a tax on pass-through businesses and retained earnings, harm housing production and investment, encourage wealthy residents and businesses to leave the state, and violate the state constitution or the will of voters. No final action on SB 6346 was taken during the hearing.

Transcript Highlights:

• and bullion B&O tax and sales and use tax exemptions; and the billing discounts public utility tax credit
• This is a different tax preference from a data center tax preference that JLARC has reviewed in the past
• The next review on that proposed schedule is for two tax preferences, a B&O and a PUT tax credit, a public
• This is a different tax preference from a data center tax preference that JLARC has reviewed in the past
• and one against the property tax.

Committee: Joint Citizen Commission for Performance Measurement of Tax Preferences

Summary: The Citizen Commission for Performance Measurement of Tax Preferences met on May 7, 2025, with quorum present. The commission approved the October 22, 2024 meeting minutes and then received its annual open government refresher from the Attorney General’s office, which reviewed key requirements under the Public Records Act and Open Public Meetings Act, including record retention, response deadlines, exemptions, and meeting notice rules. Staff then provided a 2025 legislative session update, noting that the legislature passed 23 tax-preference-related bills, with several signed by the governor and others pending. Highlights included bills that extended or repealed certain preferences, added reporting requirements for newspaper and digital content exemptions, authorized JLARC to adjust its work plan when data is unavailable, and created a new exemption for zero-emission buses. The commission approved updates to the 2026 tax preference review schedule, which includes eight preferences in seven reviews, and approved unchanged testimony questions for 2025. The commission also received the 2025 expedited preference review report covering 52 tax preferences, presented as an interactive table drawing on prior JLARC reviews and Department of Revenue studies. Staff then outlined the process for developing the next 10-year review schedule for 2027-2036, including surveying the legislature, incorporating new and repealed preferences, and considering a possible rolling 10-year schedule. No public comment was registered. The meeting ended with acknowledgments of Ron Buing’s long service on the commission and an announcement that the next meeting would be held August 6, 2025.

Transcript Highlights:

• To include Midland to receive a state sales tax and hotel occupancy tax incentive program.
• Severance taxes.
• I'm not a tax expert.
• dollar tax credit on your income taxes.
• , state hotel occupancy taxes, and state mixed beverage taxes for 30 years.

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

Committee: House Ways & Means

Transcript Highlights:

• fuels tax indexing.
• in the tax committee, but we are talking about taxes on transportation and the Tax Foundation has a
• It's not really a neutral tax. It's taxing some and not taxing others.
• It's not really a neutral tax. It's taxing some and not taxing others.
• It's not really a neutral tax. It's taxing some and not taxing others.

Transcript Highlights:

• and tax context and we in a property tax and tax context and we really<00:01:59.920><c> appreciate</
• tax system.
• </c><01:07:16.240><c> taken</c> her T their tax state tax fund got taken her T their tax state tax fund
• property taxes.
• property taxes.

Committee: House Taxes

Transcript Highlights:

• Tax increment financing is a method of allocating a portion of property taxes to finance economic development
• If voters in the impacted taxing district approve a property tax levy lid lift, then the impacted taxing
• of the other taxing districts.
• For the purposes of the property tax exemption, the tax statute still has... ...the tax statute still
• taxes.

Summary: The committee heard several public hearings on tax and housing-related bills. HB 2451 on local tax increment financing was briefed as a negotiated trailer bill adding new limits and consultation requirements for increment areas, including restrictions on using areas that already have needed public improvements, earlier sunset rules, more detailed project analysis, and stronger notice, mediation, and arbitration procedures for affected taxing districts. Supporters from cities, ports, and fire districts said the bill rebalances the process and protects impacted jurisdictions; the hearing then closed. HB 2322 would change the alternative jet fuel tax incentive program by replacing the current production-capacity trigger with a fixed effective period beginning in 2031 and ending in 2046, while clarifying carbon-intensity requirements. The sponsor said the change adds certainty and supports cleaner aviation fuel. A refinery representative supported the program but asked for clarification to include Pierce County or define “blender,” while a climate-health opponent argued the bill subsidizes continued fossil-fuel combustion and should be rejected. HB 2590 would revise the limited equity cooperative definition and exempt such cooperatives from WUCIOA unless they opt in, while preserving the property-tax exemption requirements; supporters said it would reduce red tape and better fit cooperative housing, while members raised concerns about unintended restrictive membership rules and asked for fair-housing guardrails. HB 2655 would create a new sales and use tax exemption for construction and equipment at certain new data centers in eastern Washington, subject to labor, wage, apprenticeship, employment, and sustainability requirements. Supporters framed it as a jobs and clean-energy opportunity tied to hydrogen development and regional competitiveness, while opponents said it was a subsidy for large corporations and could strain water, power, and public revenues. The committee then moved to executive action and advanced HB 1983, the second substitute for HB 1974, the substitute for HB 2334, HB 2367, and the substitute for HB 2650, all with due pass recommendations. Amendments were adopted on HB 1974 and rejected on HB 2367; the other bills were advanced without amendment. Votes were recorded on each measure, with HB 1974 passing 10-4, HB 2334 passing 13-1, HB 2367 passing 11-3, and HB 2650 passing 14-0.

Transcript Highlights:

• , a 1.8% tax on gross revenues.
• , a 1.8% tax on gross revenues.
• net tax obligations.
• net tax obligations.
• tax get exemp tax uh um tried to get tax get exemp tax exemption<01:20:59.000><c> um</c><01:20:59.199

Committee: House Taxes

Transcript Highlights:

• Unlike most taxes, the cigarette tax does not auto-adjust with inflation, as do most taxes that Granite
• tax was 30%?
• </c> tobacco tax is really three taxes tobacco tax is really three taxes there's<01:35:15.320><c> the
• taxes.
• </c><03:50:56.439><c> to</c> tax increase our local property tax to tax increase our local property tax

Summary: The public hearing focused on HB 290, which would raise cigarette and e-cigarette/vaping taxes and create a committee to study tobacco and nicotine tax policy. Representative Jerry Stringham introduced the bill as both a public health and revenue measure, arguing that nicotine use causes health harms and public costs, and that New Hampshire’s cigarette tax has been unchanged at $1.78 per pack since 2013. He said the bill would raise the cigarette tax by $1 per pack to $2.78, still below most New England states, and would also adjust vaping taxes, which he described as having been set as placeholder rates in 2019. He said the bill would also establish a study committee to review broader tobacco and nicotine taxation, including products such as premium cigars. In response to questions, Stringham said the proposed cigarette tax would be roughly equal in real dollars to the 2008 rate after inflation, and he suggested that a smaller annual increase could be considered, though he believed a larger increase would have a stronger public health effect. He explained that the vaping tax structure differs between closed and open systems because one taxes a fixed hardware product while the other taxes reusable liquid, and he said the proposal would move the rates toward a more uniform approach. He also said New Hampshire would remain below neighboring states even after the increase, though members raised concerns about cross-border shopping, business impacts, and preserving the state’s competitive advantage. Several members questioned whether the bill’s main purpose was revenue or reducing smoking and vaping. Stringham said he viewed it primarily as a public health bill, but also as a revenue measure, and said he would consider it successful even if consumption fell enough to reduce revenue. Other members emphasized personal freedom and argued the committee should focus on taxation rather than cessation, while some supported the bill as a way to capture revenue from out-of-state buyers and keep New Hampshire’s rates below surrounding states. The hearing consisted of testimony and questions only; no vote or final action was taken in the excerpt provided.

Transcript Highlights:

• </c> paying their full amount of taxes. paying their full amount of taxes.
• So the state is assessing this tax. It's levying this tax. The state is levying this money tax.
• So I want you to talk to the bill. assessing this tax. It it's levying this assessing this tax.
• Okay, this is a state tax. Okay, person. Okay, this is a state tax.
• It's only 800 people, but with a high property tax base. as the tax increases.

Committee: Senate Finance

Transcript Highlights:

• The state of Washington has an estate tax, which is a tax on the right to transfer property at the time
• The estate tax reform last year eliminated the tax for small estates.
• I know we've heard that for estate tax. We've heard that for capital gains tax.
• However, the estate tax...
• It doesn't propose any new taxes.

Summary: House Finance met on February 26 and heard several tax and housing-related bills. Substitute Senate Bill 6343 would extend the deadline to apply for a property tax exemption for improvements to single-family homes damaged by natural disasters, with sponsors citing recent flooding and the need to help displaced homeowners in multiple counties. Local officials from Kent and Algona testified in support, describing flood damage and ongoing recovery needs. The bill was heard but no vote was taken. Senate Bill 6347 would roll back the higher estate tax rates enacted in 2025, while leaving the higher exemption amount in place. Committee staff said the bill would reduce revenue to the Education Legacy Trust account by about $44.8 million starting in fiscal year 2027 and about $389.9 million over the 2027-29 biennium. Supporters argued the higher rates could harm family businesses and encourage wealthy residents to leave; opponents said the bill would mainly benefit very large estates and would worsen budget pressures by reducing funds for education and child care. Public testimony was mixed, and the bill was heard without action. The committee also heard Senate Bill 6244, which would extend a hazardous substance tax exemption for agricultural crop protection products stored in Washington for out-of-state sale until 2038. The sponsor and a logistics witness said the exemption helps farmers get products faster, supports regional distribution, and improves competitiveness; staff said the revenue impact would be small. Finally, Senate Bill 6114 would define “fixture” and “affixed” for real estate excise tax purposes to make tax treatment of attached property clearer, and Senate Bill 6027 would broaden allowable uses of several local affordable housing funding sources, including rehabilitation and operations of existing housing, rental assistance in some counties, and expanded uses for Affordable Housing for All grants. Both of those bills drew support from state and local housing officials and advocates, and the committee adjourned after the hearings with no recorded votes.

Transcript Highlights:

• , but also estate tax.
• taxes, and all the other types of taxes that the state tries to use.
• all</c><00:45:06.960><c> the</c> corporate taxes estate taxes and all the corporate taxes estate taxes
• Those are all taxed services. services our tax like you're saying land services our tax like you're saying
• /c><00:59:18.799><c> for</c><00:59:19.640><c> their</c> tax or charge sales tax for their tax or charge

Committee: House Taxes

Transcript Highlights:

• tax?
• </c> bill on the sales tax local sales tax? bill on the sales tax local sales tax?
• It is asking to extend its half cent sales tax, local sales tax.
• </c> tax bill. tax bill.
• </c> We have to have a tax bill. We have to have a tax bill.

Transcript Highlights:

• into the tax due amount.
• The next tax year.
• . under the tax code.
• , we cannot raise property taxes, we cannot lower property taxes.
• By how many votes they get by the taxing, excuse me, the taxing amount.

Bills: HB1952 , HB3258 , HB3524 , HB3851 , HB4478 , HB4613 , HB4703 , HB4742 , HB4744 , HB4809 , HB4864

Committee: House S/C on Property Tax Appraisals

Transcript Highlights:

• You also see the taxes go up because those are funded by provider taxes.
• Provider tax.
• All of our taxes, provider taxes, and we have three of those, two others outside the hospital taxes,
• <00:49:31.920><c> abdment</c> and disperses the tax abdment and disperses the tax abdment tax<00:49:34.079
• </c><01:05:59.280><c> those</c> is to tax uh those uh not tax those is to tax uh those uh not tax those

Committee: Joint Medicaid

Transcript Highlights:

• premium tax, insurance premium tax, but formerly excise license tax.
• Again by the individual income tax and the taxes, license, and fees level, individual income tax and
• tax.
• I have increases in the major tax revenues, the individual income tax and the general sales tax.
• I have increases in the major tax revenues, the individual income tax and the general sales tax.

Summary: The Revenue Estimating Conference met with four members present and first approved the prior meeting minutes and recognized the FYI end-of-balance of $577,077,871 as nonrecurring revenue. The main business was revising the state revenue forecast for FY 2026, FY 2027, and the long-range outlook. The Division of Administration recommended a $113 million reduction to the FY 2026 State General Fund forecast and a $104 million reduction for FY 2027, citing weaker-than-expected individual income tax collections, softer corporate income tax receipts, and some weakness in general sales tax, partly offset by stronger motor vehicle sales tax and higher mineral-related revenues tied to oil prices. The Legislative Fiscal Office presented a somewhat different but broadly similar forecast, with modest net increases to the general fund bottom line in the current year and next year, emphasizing caution on income and corporate taxes and more optimism on sales, severance, royalties, and some other revenue streams. A substantial portion of the discussion focused on the causes of the income tax shortfall, especially withholding and refund patterns after tax changes that lowered rates. Department of Revenue officials explained that withholding tables had been set with a cushion that may be producing larger refunds, and said changing the tables could quickly reduce overwithholding, though the effect would take time to show up. Members also discussed corporate collections, the lingering effects of the franchise tax repeal, the role of settlements and audits, and the extent to which collections are voluntary versus enforcement-driven. The Department of Revenue said corporate collections still had key filing and estimated-payment milestones ahead in May and June, and that refund and audit activity related to the former franchise tax would continue for some time. The conference then adopted the Division of Administration’s FY 2026 forecast, the FY 2027 recurring forecast, and the long-range forecast, along with the proposed inflation rates for the Millennium Trust and parish severance allocation. Members also adopted the incentive expenditure forecast, noting that the reported amount is only the REC-reported portion and that larger tax exemption amounts come off the top before appropriations. The Treasurer reported a General Fund cash balance of about $404.1 million as of May 5, 2026, and an interfund borrowing base of about $9.18 billion, saying cash levels were similar on average to the prior year. The meeting ended with a note that another REC meeting might be needed depending on the May 16 election, and the conference adjourned without objection.

Transcript Highlights:

• tax rate.
• So when we talk about taxing, let's talk about who the taxes benefit and who the people are going to
• be paying for these taxes.
• with a sales and use tax.
• And we certainly lifted a big tax credit with the film tax credit.

Summary: The Assembly Committee on Revenue and Taxation heard a series of tax-related bills, with several measures referred to suspense and a few advancing. SB 284 would clarify Proposition 19 rules for inherited family homes in probate, including when the one-year residency clock starts and whether title consolidation among siblings triggers reassessment; supporters included the California Association of Realtors, while county assessors opposed the sibling-transfer language as creating ambiguity. The bill was sent to suspense. SB 863 was taken up on the consent calendar and passed 6-0 to the Assembly floor. SB 333 would let San Luis Obispo County voters consider raising a local tax rate limit to fund transportation projects; supporters said it would help the county become self-help for major road needs, while opponents argued it would make it easier to raise regressive sales taxes. The committee approved the bill 5-2, as amended with a five-year sunset. SB 376, which clarifies that charitable remainder trusts are not treated as incomplete gift non-grantor trusts for California income tax purposes, drew support from the California Lawyers Association and no opposition, and passed 5-2 to Appropriations as amended. The committee also heard SB 591, which would replace steep penalties for failing to use electronic funds transfer with fixed penalties of $100 for a first violation and $500 thereafter; supporters said current penalties can be excessive and out of proportion, and the bill was sent to suspense. SB 419 would partially exempt hydrogen fuel from the state sales and use tax while leaving the existing road fee in place; supporters said it would help hydrogen adoption and parity with other clean fuels, while one environmental group opposed unless amended, and the bill went to suspense. SB 587 proposed a state tax credit for local sales tax paid on manufacturing equipment to encourage investment and jobs; it had broad business support and no opposition, but was also sent to suspense. SB 710 would extend and update the property tax exclusion for solar installations, with broad support from clean energy and local government groups and some opposition from large energy consumers; it too was referred to suspense. Finally, SB 663 would extend deadlines and exemptions for wildfire victims and certain nonprofit and disabled veteran properties; it received support from assessors and committee members but was also sent to suspense for further work.

Transcript Highlights:

• </c> tax cap uh sorry a lot of the tax tax cap uh sorry a lot of the tax exemption<01:36:31.440><c> or
• </c> taxes annually. taxes annually.
• </c> tax loophole at a time when property tax tax loophole at a time when property tax burdens<03:34:
• /c><03:38:36.160><c> lowincome</c> neededed tax tax relief to our lowincome neededed tax tax relief to
• </c> elderly tax exemption or other tax elderly tax exemption or other tax exemption<04:00:41.760><c>

Committee: House Municipal and County Government