Transcript Highlights:

• It simply reduces the tax burden on income that has already been reported and taxed.
• It simply reduces the state tax burden on income that is already reported and taxed.
• tax.
• They're going to pay more taxes.
• They're going to pay more taxes.

Summary: The House Revenue and Finance Committee met to consider House Substitute 1 for House Bill 386, which would create a temporary Delaware income tax deduction for qualified tip income from tax years 2027 through 2029. The sponsor described it as relief for service workers in restaurants, salons, and similar tipped occupations, with a deduction of up to $15,000, income-based phaseouts, a refundable credit for lower-income workers, and a sunset for later review. Committee members raised questions about the resident/non-resident language, the fiscal note, and whether the Department of Finance could implement the change; Finance said the department could administer it and expected only modest administrative costs, while the Comptroller’s office said the bill would reduce general revenue. After a brief recess to review updated language, the committee took public comment, but no one testified. A motion to release the bill failed to receive enough votes, and the chair said she would walk it to seek additional signatures. The committee then considered Senate Bill 219, which would phase in an increase in the military pension income exemption from $12,500 to $25,000 by tax year 2029. The sponsor argued the measure would help attract and retain military retirees, citing economic return estimates, workforce benefits, and support from all 21 Senate co-sponsors. Some members supported the bill as a way to reward service and bring in long-term residents, while others questioned whether the exemption should be income-based rather than available to all military retirees, including those with substantial second careers. The Department of Finance said it could operationalize the bill and that the non-resident language was unnecessary because the subtraction is already picked up in the non-resident code section. Public testimony from veterans’ organizations strongly supported the bill, emphasizing that the exemption can influence retirement decisions and help veterans and their families stay in Delaware. A motion to release the bill also failed to get enough votes, and the chair said she would walk it for signatures before adjourning the meeting.

Transcript Highlights:

• So it would be January 1, 2026, for the personal income tax, and then the corporate income tax won't
• We like low taxes, just like anybody else, but we're asking you to vote no on yet another tax cut.
• Some of the tax, a significant portion of the taxes that are used to fund public education originates
• in the real estate taxes locally.
• We've cut taxes every year for a number of years and, well, not every year, but we've cut taxes regularly

Committee: All REVENUE & TAX - SENATE

Transcript Highlights:

• </c> with a local tax issue. with a local tax issue.
• &gt;&gt; tax. &gt;&gt; tax. &gt;&gt; tax. Thank<00:24:57.640><c> you.
• </c> in tax credit. in tax credit.
• </c> get this tax credit? get this tax credit?
• This is a new tax, okay? you. This is a new tax, okay?

Transcript Highlights:

• a tax break.
• a tax break.
• a tax break.
• Tax revenue.
• </c> of income tax. Thank you. of income tax. Thank you.

Bills: HF3611 , HF3659 , HF3909

Committee: House Taxes

Transcript Highlights:

• Arizona tax code.
• Governor Hobbs is looking to cut taxes for the middle class, cut taxes for seniors, eliminate taxes on
• the tax year.
• This bill includes no taxes on tips, no tax on overtime.
• This applies the Trump tax cuts to the Arizona tax code.

Summary: The House convened with prayer, the Pledge of Allegiance, guest introductions, and a proclamation recognizing February 2026 as American Heart Month, with Representative Willoughby emphasizing CPR and AED readiness. Members also welcomed students and guests from Wilcox Christian School, the Arizona State Fair Association, and other visitors. The chamber then handled routine business including attendance, journal approval, committee assignments, and first and second readings of numerous bills. The Committee of the Whole considered several measures, including HB 2016, HB 2133, HB 2223, HB 2459, HB 2501, and HB 2785. Most received do-pass recommendations after brief explanations and amendments. HB 2785, a major tax conformity bill, drew the most debate: supporters said it would align Arizona law with federal tax changes, prevent taxpayers from having to amend returns, and provide certainty during filing season, while opponents argued it would create a large revenue loss and benefit corporations and the wealthy without a clear funding plan. The committee adopted the Ways and Means amendment to HB 2785 by a 31-22 division vote, and the bill ultimately received a do-pass recommendation. Back on the floor, the House adopted the Committee of the Whole report and sent HB 2016, HB 2133, HB 2123, HB 2459, HB 2501, and HB 2785 to engrossing. In third reading, HB 2029, HB 2120, HB 2126, and HB 2131 passed, while HB 2045 failed on a 19-36 vote and then failed again on a reconsideration motion by 25-27. Members then made several personal privilege remarks about legislative process, representation, and Black History Month, and the House adjourned until the following Wednesday afternoon.

Transcript Highlights:

• They tax software as a service. They don't tax digital infrastructure-type products.
• tax in the account tax-free over a period of time.
• tax credit program.
• Competes tax credit.
• Dollars for low-income housing tax credits. Ready? Dollars for low-income tax... I got it.

Transcript Highlights:

• This is the 2026 tax bill.
• That's good for tax years 26 and 27.
• That's good for tax years 26 workaround. That's good for tax years 26 and<00:02:17.640><c> 27.
• <00:02:37.760><c> tax</c><00:02:38.040><c> year</c><00:02:38.640><c> taxes</c><00:02:39.440><c> uh</c
• > taxes tax year taxes uh taxes tax year taxes uh PTR<00:02:40.959><c> that's</c><00:02:41.160><c> being

Transcript Highlights:

• Everyone's taxes are too high. I don't want to pay my tax. No one likes paying taxes.
• I don't want to pay my tax. No one likes paying taxes. Taxes are high, right?
• Tax, tax, tax — especially the wealthy that worked hard their whole life.
• , sales tax relief, mortgage tax relief.
• , SALES TAX RELIEF, MORTGAGE TAX RELIEF.

Summary: The Senate opened with the Pledge of Allegiance and an invocation, then approved the prior day’s Journal and moved into motions, resolutions, and budget-related business. Senator Gianaris called up Senate Print 5898A for reconsideration; the Senate voted 59 ayes to restore the bill to the third reading calendar. Several amendments were also received on third-reading bills, and the Finance Committee was called into session while the chamber proceeded with resolutions. The Senate adopted Resolution J.2106 recognizing Second Chance Month and the mental health impacts of incarceration, with Senator Brisport speaking in support and a guest from the community recognized in the chamber. The body also adopted Resolution J.1492 designating May 27, 2026, as Taiwan Heritage Day, with remarks from Senators Sepúlveda, Stavisky, and Liu highlighting Taiwanese contributions to New York and expressing support for Taiwan amid current geopolitical tensions. The Finance Committee then reported several budget bills, including Senate Prints 9003D, 9004D, 9007C, and 9009C, which were moved to third reading. The remainder of the session focused on the supplemental and controversial budget calendars, especially tax and spending provisions. Senators debated the “Protecting Our Wallets” energy rebate, with supporters describing it as a one-time check for eligible taxpayers and critics arguing it was too small and not tied directly to utility bills; the chamber accepted the message of necessity and laid the bills aside. Members also debated extensions and changes to tax provisions affecting corporations, alternative fuel exemptions, Broadway and theatrical production tax credits, charitable deductions for certain 501(c)(3)s, nicotine pouch taxes, a new New York City pied-à-terre tax, and a standardbred horse-racing testing fee. Several senators criticized the budget as raising costs or favoring certain industries, while supporters defended the measures as revenue-raising, affordability, or public-health policies. No final votes on the controversial budget bills are shown in the excerpt beyond procedural rulings, adoption of the resolution calendar, and acceptance of committee reports.

Transcript Highlights:

• The Committee on Finance and Tax will now come to order. Stephanie, please call the roll.
• Let's take up tab 1, SPB 7046 by Finance and Tax relating to taxation.
• of taxes.
• to state sales tax.
• The direct-to-home satellite service is a declining tax source.

Summary: The Finance and Tax Committee met with a quorum present and took up two bills. The first, SPB 7046, was the Senate tax package. It included changes to Live Local property tax opt-outs, charter school distributions from voter-approved property tax levies, RV park special assessments, fiscally constrained county funding, a permanent sales tax exemption for small propane tanks, a hunting/fishing/camping sales tax holiday, and provisions barring governmental net zero policies. An amendment made the charter-school distribution change prospective starting July 1, 2026. Committee discussion focused heavily on whether the charter-school language would divert money from traditional public schools and on the fiscal-constrained county formula. The bill was reported favorably as a committee bill after a roll call vote, with Senators Bernard and Jones voting no. The committee also considered SPB 7048, which updates Florida’s conformity to the Internal Revenue Code as of January 1, 2026 and partially decouples from federal tax changes in the One Big Beautiful Bill Act. The bill addresses bonus depreciation, research and experimental expenses, business meal deductions, and the business interest deduction, with the Revenue Estimating Conference expected to review the fiscal impact later in the week. The Florida Chamber testified that the bill should better align with federal tax relief and reduce administrative burdens, while senators emphasized the need to balance business tax relief with state revenue constraints. SPB 7048 was also reported favorably as a committee bill by roll call vote.

Transcript Highlights:

• But nonetheless, the tax rate in Iowa is zero. The tax rate in Kansas is zero.
• The tax rate in Arkansas is 20%, and the tax rate in Oklahoma is 22%. Today.
• A tax rate in Kansas is zero. The tax rate in Arkansas is 20%, and the tax rate in Oklahoma is 22%.
• state tax this.
• tax rate.

Committee: House Utilities

Transcript Highlights:

• </c> a u group that we tax together? a u group that we tax together?
• </c> profit tax is a mistake. profit tax is a mistake.
• enterprise tax.
• </c><01:36:24.320><c> Um,</c> enterprise tax. Um, enterprise tax.
• a tax break as you is a relief, a tax a tax break as you put<04:29:25.760><c> it.

Committee: House Ways and Means

Transcript Highlights:

• So that's 50% of the corporate tax, i.e., 50% of the corporate tax, i.e., occupation tax for mining of
• So that's 50% of the corporate tax, i.e., 50% of the corporate tax, i.e., occupation tax for mining of
• So that's 50% of the corporate tax, i.e., 50% of the corporate tax, i.e., occupation tax for mining of
• </c> much for tax uh public a property tax much for tax uh public a property tax exemption<00:44:16.480
• Uh the tax bill in the with tax bills.

Committee: Senate Taxes

Transcript Highlights:

• Received no tax credits.
• Here with me today is Judge Fred Resbrose, for taxing caregivers to answer tax and no questions.
• Received no tax credits.
• Here with me today is Judge Fred Resbrose, for taxing caregivers to answer tax and no questions.
• The first is SB 1096, Senator Dodd, personal income tax for senior tax credit.

Committee: Senate Revenue and Taxation

Transcript Highlights:

• The use of lodging taxes is related to compliance auditing to make sure that the lodging tax is spent
• We'll look at who benefits from each tax preference and the amount of tax revenue, I'm sorry, the amount
• of tax that they save.
• Next is a review of a B&O tax and a public utility tax credit for a portion of any contributions that
• This is just the sales tax doesn't apply at the time of sale when This is just the sales tax doesn't

Summary: The Joint Legislative Audit and Review Committee met on September 17, 2025, in hybrid format. After roll call, the committee initially lacked a quorum and deferred approval of the July 15 minutes until Representative Berg arrived; the minutes were then adopted. Members also discussed the proposed 2026 JLARC meeting schedule, including possible changes to address crowded July meetings and the annual tax exemption review workload. Staff presented the annual lodging tax expenditures report, noting that 213 municipalities received distributions in 2024, with 91% reporting compliance, $114 million awarded for more than 1,700 activities, and no independent verification of the self-reported data. Several members questioned the value and usefulness of the report, and the executive committee indicated it may recommend removing the statutory reporting requirement. The committee then heard the preliminary performance audit of the Office of Privacy and Data Protection, which found the office meets its statutory responsibilities and has high user satisfaction, but recommended updating the statute to better match the office’s current capacity and focus and improving performance measures to reflect long-term privacy outcomes rather than outputs. Members asked about FERPA and other federal privacy laws, and OPDP staff said they provide general privacy training and consultation but not law-specific training unless requested. The committee adopted the final report on Washington State recreational boating programs without recommendation, after staff reported that boating revenues support both general government and boating activities and that no participating agencies submitted formal comments. Members asked about boater safety education and possible overlap among the six agencies involved; Parks staff said education has reached more than 500,000 boaters and that fatalities and incidents have declined. The committee also reviewed planned study questions for a JLARC review of Labor and Industries’ enforcement of farm worker laws, with members raising scope questions about the term “farm worker” versus “agricultural worker,” and for DNR’s Eastern Washington sustainable harvest calculation, which JLARC will review as DNR completes its recalculation. Finally, staff outlined the 2026 tax preference performance reviews covering seven preferences, and members asked about racial equity, environmental impacts, disclosure of beneficiary savings, and how the reviews will measure effectiveness; the meeting adjourned before noon.

Transcript Highlights:

• tax system.
• tax software as a service, and they don't tax digital infrastructure-type products.
• tax credit program.
• rather than offsetting all their tax liability with tax credits.
• Competes tax credit.

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:

• resources that is not cash-based: income tax, sales tax, every other tax.
• Income tax, sales tax.
• own, employment taxes, fees... ...property taxes on the property they own, employment taxes, fees, different
• You keep raising taxes, the people that pay the taxes are going to leave.
• taxes.

Summary: The Senate Budget and Fiscal Review Committee held an informational hearing on California’s Budget Stabilization Account, or Rainy Day Fund, with opening remarks focused on the state’s long history of revenue volatility and the role reserves play in smoothing downturns. The Legislative Analyst’s Office explained that California’s personal income tax base is highly volatile because high-income earners’ income is tied to capital gains and other fluctuating sources, and that Proposition 2’s current reserve rules set aside 1.5% of General Fund revenues plus a share of excess capital gains, but cap constitutional deposits at 10% of General Fund taxes. The LAO said its analysis evaluates reserve policy over decades and found the current system would cover about 30% of funding shortfalls in a 90th-percentile downturn scenario over 50 years, which is an improvement over no reserve but still inadequate. The LAO recommended raising the reserve cap substantially, ultimately to 50% by 2055, with an immediate increase to 20% and gradual increases thereafter. It also suggested either replacing Proposition 2’s deposit formulas with broader rules that capture volatility across all tax revenues or, alternatively, depositing all excess capital gains rather than only a share. The Department of Finance said the Governor’s prior proposal similarly sought to raise the cap from 10% to 20% and exclude reserve deposits and withdrawals from the state appropriations limit, arguing those two constraints limited the state’s ability to save during recent revenue surges. Other panelists and members discussed whether reserves should be paired with broader structural changes, including unemployment insurance reform, safety-net funding, infrastructure reserves, and the projected surplus temporary holding account. The California Budget and Policy Center supported reserve reform but emphasized balancing savings with current needs and noted other tools such as revenue increases, borrowing from special funds, and the new surplus-holding account. Members debated the causes and effects of Proposition 13, the appropriations limit, business departures, and whether reserve policy should be more directly tied to protecting Californians’ access to health care, food assistance, child care, and other core services. No votes or formal actions were taken, as the hearing was informational only.

Transcript Highlights:

• and counties can impose a second 2% lodging tax, which is not credited against the state sales tax.
• sales tax.
• voters approve the tax.
• tax.
• State sales tax.

Summary: House Finance heard testimony on several tax and local government bills. HB 2278 would remove the July 1, 2027 expiration on the additional $3-per-room-night tourism promotion area lodging charge; supporters from destination marketing organizations said the revenue has produced strong returns for tourism and events, while questions were raised about how the local ordinances would continue. HB 2583 would lower the population threshold for cities to impose a higher lodging tax and expand authority for public facilities districts; the sponsor and Vancouver supporters said it would help fund a proposed performing arts center and other tourism investments, while hospitality, short-term rental, and some local advocates raised concerns about stakeholder input, equity, and whether the bill was too broad. HB 2224 would change how a city forming a single-city fire protection district handles levy reductions and would exempt part of one levy from the local tax limit; city and firefighter groups supported it as a needed tool for fire and EMS funding, while hospital districts and tax opponents warned about prorationing, governance, and higher taxes. HB 2325 would create a statewide tourism self-supported assessment program funded by participating tourism businesses; supporters from tourism, hospitality, wine, and brewing groups said it would provide a competitive, industry-driven statewide marketing program, while members questioned impacts on specific communities and the need for broader local benefits. HB 2431 would expand from 15 to 50 days the amount of fundraising activity allowed in nonprofit public assembly halls and meeting places, and the Grange supported it as a practical way to keep community halls open. After public testimony, the committee moved into executive session and advanced three bills. HB 2584, a sales and use tax exemption for qualifying farm equipment sold to eligible farmers, passed 14-0 with one excused. HB 2610, which modifies the property tax exemption for nonprofit homeownership development, also passed 14-0 with one excused. HB 2615, which codifies the voluntary disclosure tax program and authorizes temporary tax amnesty, likewise passed 14-0 with one excused. The chair also announced a deadline for amendments on items to be acted on the following day.

Transcript Highlights:

• Committee, this is a sales and use tax rule. This is a sales and use tax rule.
• Yes, I'm Philip Johnson, Sales and Use Tax Specialist at the Tax Commission, and, Chairman and Mr.
• Yes, I'm Philip Johnson, Sales and Use Tax Specialist at Tax Commission, and Chairman and Mr.
• So yard sale sales tax, isn't there a limit of yard sale? sales tax.
• Aaron Yost, Idaho State Tax Commission. Thank you for... Aaron Yost, Idaho State Tax Commission.

Committee: House Revenue and Taxation

Transcript Highlights:

• </c> support with this Common Sense tax support with this Common Sense tax policy<00:05:05.479><c> to
• </c><00:10:52.480><c> be</c> 2025 uh 1B provides that the tax be 2025 uh 1B provides that the tax be
• </c> 26 and once again exempt the sales tax 26 and once again exempt the sales tax in<00:25:22.360><c
• c> materials</c> sales tax charging sales tax materials sales tax charging sales tax materials would<
• </c><01:05:28.240><c> reducing</c> would effectively tax the tax reducing would effectively tax the tax

Committee: Senate Taxes

Transcript Highlights:

• the tax excise tax decrease.
• tax.
• </c> property taxes. property taxes.
• The state transfer tax is transfer tax.
• </c> of tax, no requirement to uh add to tax of tax, no requirement to uh add to tax bill<02:56:52.720

Committee: House Ways and Means

Summary: The committee heard testimony on House Bill 1596, which would raise New Hampshire’s cigarette excise tax from $1.78 per pack to about $2.80, using an inflation-based adjustment since the rate was last set in 2008. Representative Jerry Stringham, the bill’s sponsor, said the measure would keep New Hampshire competitive with neighboring states, generate revenue, and help offset other budget pressures. He also described the bill as repealing an income-based premium charge in Medicaid/CHIP-related programs and restoring cuts to the University System of New Hampshire, arguing that the combined package would still leave the state in a positive fiscal position. He said the tobacco tax increase would likely have some cessation effect but would remain low relative to other New England states, and he cited prior testimony from health groups supporting a larger increase. Members questioned the sponsor about how the new rate was calculated, the prior tobacco tax reduction and restoration, whether tobacco companies would absorb or pass on the tax, and the fiscal note’s estimates for Medicaid premium revenue and UNH funding. Stringham said he used Bureau of Labor Statistics inflation data, that the earlier 10-cent reduction did not produce the expected sales increase, and that the current bill would eliminate the premium charges now in the budget. He later clarified that the Department of Medicaid Services had updated the revenue estimate, but said the bill still showed a surplus overall. He also said the federal government already imposes a $1-per-pack tax and that New Hampshire would remain below neighboring states even after the increase. Two public witnesses testified in opposition to the tax increase. Anna Bettincourt, a tobacco category manager, argued that higher tobacco taxes would unfairly target smokers, reduce New Hampshire’s tax advantage, and likely shift purchases to other states or illicit markets rather than reduce use. She said tobacco companies generally do not lower prices and that Massachusetts’ flavor restrictions had not eliminated sales. In response to questions, she maintained that a smaller increase would still be harmful and that enforcement problems make bans ineffective. The sponsor and some members countered that smokers impose higher health costs and that tobacco taxes are a policy tool for both revenue and public health. No vote or final committee action was taken in the portion of the meeting provided.