Transcript Highlights:

• Third, it repeals the coal sales and use tax exemptions.
• They don't want to take the time to get it ready for sale. That most folks don't want.
• There is an exception for lodging taxes that are credited against the state sales tax.
• There is an exception for lodging taxes that are credited against the state sales tax.
• And last session, in the sales tax expansion of sales tax on services bill, our taxes went up by 17%.

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:

• ALTERNATIVE JUDICIAL SALES RECORDS CAN IMPROVE ALTERNATIVE SALE METHODS IF THEY ARE AND RESULT IN HIGHER
• SALES MUST TAKE PLACE IN THE SAME COUNTY UNLESS THE OWNER AGREES OTHERWISE.
• DESIGNS FLEXIBILITY THE PROCESS ON KEEPING SALES FAIR AND COMPETITIVE.
• THEY CALL IT, THE ALTERNATIVE SALES PROCEDURE.
• Ingoglia: YOUR CONCERN IS PROBATE SALES. >> THAT IS THE FOCUS ON AFTER. >> Sen.

Transcript Highlights:

• the sales tax.
• That's the sales >> That's the sales tax.
• </c> tax uh tiff revenue. the sales tax that tax uh tiff revenue. the sales tax that comes<00:15:25.760
• </c><00:21:02.960><c> This</c><00:21:03.120><c> is</c><00:21:03.280><c> sales</c><00:21:03.919><c> sales
• This is sales sales tax. isn't it? This is sales sales tax.

Summary: The committee first handled routine business, including a roll call, approval of the prior meeting minutes, and a set of informational reports. Those reports covered University of Louisville research equipment purchases, a Kent County school district debt issue for elementary school renovations, the University of Kentucky’s planned use of construction management risk for a new engineering building, APA certification reports for underwriter and bond counsel selection committees, and a KCNA status report on infrastructure upgrades and purchases. The main presentation was an informational update from the Louisville Arena Authority. Board representatives said the arena was created to drive economic development and reported about $1.4 billion in economic impact from 2010 to 2013. They explained the authority’s financial structure, including arena operating revenues, TIF revenues, debt service, and a long-term capital plan for major repairs and replacements. Members questioned the low net revenue figures, the long timeline before TIF revenues are projected to exceed debt service, the size of capital expenditure spikes, and the University of Louisville revenue-sharing arrangement. The authority said the $2.42 million annual UL payment is fixed under a 2017 refinancing agreement, while other amounts vary with ticket sales and related revenues. They also said the COVID-era state and Metro funds, combined with authority cash, were used to prepay debt and reduce interest, lowering the debt service schedule. The committee then considered and approved a new capital project for a new HVAC system for the student wellness center pool area. The project, presented by university staff, was approved by the board and required committee action. The committee took a roll call vote, and the project passed unanimously. Finally, Janice Thomas of the state budget office presented two tourism, arts, and heritage cabinet grid resilience projects at Kincaid Lake State Resort Park and Kentucky Down Village State Resort Park. Each project costs $7,834,600 and is funded mostly by a federal grid resilience grant, with the remainder from state utility infrastructure replacement funds and energy policy funds. Staff explained that the projects will move park electrical service ownership and maintenance to regional utilities, allowing the state to exit the infrastructure-management role while continuing to pay utility bills through normal metering. The committee approved the action item by voice vote.

Transcript Highlights:

• So again, I'm just asking: does that option work for your sales model?
• We believe the direct sales model works better for our business.
• About half of the country allows some form of direct sales.
• About half of the country is completely closed to direct sales.
• in sales revenue.

Committee: Senate Transportation

Transcript Highlights:

• An act to amend the tax law in relation to accepting the payment of sales tax and purchase of certain
• An act to amend the tax law in relation to establishing a sales tax exemption for energy storage.
• An act to amend the tax law in relation to establishing a sales tax exemption for energy storage.
• An act to amend the tax law in relation to exempting school supplies from sales tax during a specific
• That sales tax exemption did not exist previously.

Committee: Senate Budget And Revenue

Summary: The Senate Budget and Revenue Committee met for its first meeting of 2026 with a quorum present and considered nine bills, mostly tax-related measures. Bills discussed included S196 on the public safety surcharge, S939 on gifts to the affordable housing for veterans and seniors fund, S985A on sales tax treatment for feminine hygiene products, S1140A on a tax on non-essential helicopter and seaplane flights in cities of one million or more, S1145 on increasing contributions to family tuition accounts, S1527 on a sales tax exemption for energy storage, S4601 on a temporary sales tax exemption for school supplies, S7641 on dedicating opioid excise tax revenue to the Drug Treatment and Public Education Fund, and S7875 on ending the sales tax exemption for precious metal bullion held for investment. Most bills were advanced without significant opposition and were reported to the Finance Committee. S985A and S4601 were reported to the calendar/Finance after brief discussion; S4601 drew one negative vote. S1140A also advanced, with two no votes. S7875 received the most discussion, with the sponsor arguing that repealing the bullion exemption would recover an estimated $600 million in foregone revenue and better align with affordability concerns; it was reported to Finance with one member recorded as without recommendation. Members generally framed the bills as affordability or revenue measures, citing rising costs for families, school supplies, housing, and the need to redirect or recover tax revenue. The meeting concluded after all agenda items were moved and reported.

Transcript Highlights:

• So that whole period, we were missing low on sales tax collections.
• One last slide that sort of complicates JFAC's decision-making is sales tax distribution.
• I started talking about sales tax distributions earlier.
• We might as well take a look at the history of where sales tax actually went.
• online sales, and there they go directly to what's called the tax relief fund.

Committee: Senate Health and Welfare

Transcript Highlights:

• Number two being the natural gas for transportation studies, and number 17 being the energy sales to
• fuel, was enacted together with several other tax preferences: the sales and use tax exemption you've
• That machinery and equipment sales and use tax exemption has a reporting requirement.
• One possible reason was that the federal grant already covered sales tax on the housing adaptation.
• Again, because we weren't able to definitively state that the grant covers the entirety of the sales

Committee: Joint Citizen Commission for Performance Measurement of Tax Preferences

Summary: The Citizens Commission for Performance Measurement of Tax Preferences met on October 22, 2025. Members approved the September 22, 2025 meeting minutes unanimously and reviewed a draft 2026 meeting schedule, tentatively setting meetings for May 6, August 4, September 15, and October 20, 2026, without taking a formal vote. The commission then worked through its commissioner comments on tax preference reviews, with Commissioner Forsyth recusing himself from the natural gas for transportation and energy sales to silicon smelters items. The discussion focused on reconciling endorse/endorse with comment/does not endorse positions into final recommendations. The commission adopted comments for the liquefied natural gas preference, the natural gas for transportation preference, the energy sales to silicon smelters preference, several low-income housing and veterans-related preferences, and other reviewed tax preferences. Several comments emphasized reporting burdens, the need for clearer legislative guidance, and in the veterans’ item, the possibility that low use may reflect limited visibility of the preference. Staff also clarified the reporting requirements for the natural gas transportation preference and the rationale for continuing the LNG preference while asking the legislature to consider a Department of Revenue workgroup report. All commissioner comment packages were ultimately adopted by roll call votes, with the relevant recusals noted. No members of the public testified in person. The chair invited written testimony by email or mail and thanked staff and members for their work. The next commission meeting was announced for May 6, 2026, at 10 a.m.

Transcript Highlights:

• So currently Minnesotans are spending about $19 million per year for the sales tax.
• So currently Minnesotans are spending about $19 million per year for the sales tax.
• So we are allowing that the sales tax on natural gas sold for residential use—you're not paying sales
• </c> level to keep things rolling um sales level to keep things rolling um sales tax<00:03:45.760><c>
• It's backfilling it with the sales tax on the back page here.

Committee: House Taxes

Transcript Highlights:

• </c> can take pressure off a ballpark sales can take pressure off a ballpark sales tax,<00:48:13.960>
• I really don't like to see a sales tax because this is a state asset.
• I really don't like to see a sales tax because this is a state asset.
• I really don't like to see a sales tax because this is a state asset.
• I really don't like to see a sales tax because this is a state asset.

Committee: House Taxes

Transcript Highlights:

• tax to sales of electronically delivered pre-written software...” “...and extend the sales tax to sales
• So California sales tax law generally applies only to the sales of tangible goods, but not to their digital
• California sales tax law generally applies only to the sales of tangible goods, but not to their digital
• In recent years, many states have updated their sales tax laws by applying sales tax to electronically
• Evading the sales tax, yes. It's trying to understand that.

Summary: The subcommittee heard May Revision proposals from the Department of Food and Agriculture, the Government Operations Agency, the Department of Technology, and the Franchise Tax Board, with public comment to come later and all items held open. CDFA presented funding for the animal care program implementing Proposition 12, including a one-time $5.2 million General Fund transfer to the Ag Fund and $2.8 million ongoing, and the LAO recommended approval while noting the Legislature should revisit the funding once litigation and federal preemption questions are resolved. CDFA also proposed ending state oversight of industrial hemp and moving to the federal USDA program by January 1, 2028, with an $8.3 million General Fund transfer to cover startup and transition costs; the LAO supported the transition. Additional CDFA items included $204,000 ongoing and one position to preserve agricultural statistics reporting after USDA reorganization, and trailer bill changes to clarify the department’s 5% indirect cost cap; both drew no objections from Finance or LAO. The Government Operations Agency and Cradle to Career items focused on implementing the new federal Workforce Pell program. Finance described trailer bill language establishing state eligibility processes, with the California Student Aid Commission as the authorizing entity in consultation with the Workforce Development Board, and proposed $1.3 million one-time General Fund for Cradle to Career to build data linkages. The LAO urged caution because federal rules were just finalized and said more information was needed on workload, costs, and whether existing data systems could support the work. Senators raised policy concerns about limiting the program to public institutions and about aligning the proposal with broader workforce and labor goals. The committee also briefly discussed SB 53/Cal Compute, with GovOps saying no appropriation had been provided for its consortium work, and Finance saying the administration was not proposing funding at this time. The Department of Technology presented a $30 million operational backstop for the Middle Mile Broadband Initiative, intended to cover any shortfall if expected revenues from the Golden State Net third-party administrator do not materialize in time. The LAO initially recommended rejection over broad spending authority, then suggested amendments with stronger reporting and legislative review; committee members questioned the revenue assumptions, oversight, and whether the request could recur. CDT also sought $1 million for Poppy, the state’s GenAI digital assistant, to expand secure statewide use; the LAO had no concerns, and members asked about data security, model bias, training restrictions, and possible local-government use. Finally, FTB proposed realigning CalFile resources after the federal Direct File program was discontinued, retaining three ongoing positions and returning the rest of the funding and positions to the General Fund; the LAO said the reduced scope was reasonable, and members discussed keeping the free filing system user-friendly and ready for future federal changes. The committee also heard the administration’s digital pre-written software tax proposal, which would extend sales tax to electronically delivered software and SaaS beginning January 1, 2027, generating an estimated $450 million General Fund in 2026-27 and $900 million ongoing, plus local revenue. The LAO supported modernizing the tax base but recommended broadening the proposal to include more digital products while considering a business-use exemption or reduced rate, and flagged a newly added video game exemption as a revenue downside. Senators generally supported the goal of raising revenue and aligning California with other states, but questioned the local revenue distribution and equity effects, and one senator said they would not support expanding the tax to books, music streaming, and similar consumer products. All items were left open without votes.

Transcript Highlights:

• Is that based on their total sales during that time, or is that based on their sales, a normal set of
• Is that based on their total sales during that time, or is that based on their sales, a normal set of
• </c><00:25:21.040><c> um</c> their sales um their sales um a<00:25:22.000><c> normal</c><00:25:22.400
• ><c> they</c><00:25:23.280><c> have</c> a normal set of sales that they have a normal set of sales that
• Are we taking the liquor sales event?

Summary: The committee took up House File 4949, as amended by the adopted H4949A2 and H4949A3 amendments. The bill would create a sports and events reimbursement program intended to give Minnesota a more reliable funding mechanism to compete for major sporting and entertainment events. Representative Lislegard and supporters argued that events such as the Super Bowl, NFL Draft, Final Four, World Juniors Hockey, and Olympic trials generate substantial economic activity, tax revenue, and statewide visibility, and that Minnesota has lost opportunities because it lacks a standing competitive fund. Testifiers from the Minnesota Business Partnership and Minnesota Sports and Events strongly supported the bill, describing it as a performance-based, closed-loop model that reinvests tax revenue generated by events into securing future events. Jess Graba, Cheryl Lindsey, and Dr. William Campbell emphasized community benefits beyond economics, including youth inspiration, school improvements, inclusion, and positive local engagement tied to events like the Olympic trials, the Women’s Final Four, and WWE appearances. Several testifiers cited specific figures, including roughly $71.5 million in economic impact and $4.7 million in tax revenue for World Juniors, about $74.8 million and $5.7 million for the gymnastics trials, and more than $430 million in lost economic impact from events Minnesota did not secure. Members raised concerns about the funding mechanism, especially the use of revenue that would otherwise go to the general fund or other accounts. Representative Huot said he supported bringing events to Minnesota but was uneasy about diverting general fund money and suggested stronger legislative oversight, possibly through a formal sports committee. Representative Youakim asked how the bill’s revenue capture would work and noted concerns about taking money from transportation-related accounts; staff explained that the amended bill affects seven state taxes and a fee, including motor vehicle rental taxes and the retail delivery fee, with some revenue directed to non-general fund accounts. Members also requested more information on the methodology behind the University of Minnesota Extension economic impact studies, and staff said those studies could be shared. No final vote on the bill was taken in the portion provided.

Transcript Highlights:

• Questions on the sales and use taxes provisions. All right.
• Questions on the sales and use taxes provisions. All right.
• Questions on the sales and use taxes provisions. All right.
• Questions on the sales and use taxes provisions. All right.
• /c><00:21:33.440><c> that</c> provision sales tax provision that provision sales tax provision that increases

Bills: HF9

Committee: House Taxes

Transcript Highlights:

• Sales under a million dollars are automatically exempt.
• . sale on Nantucket Island under $2 million.
• median home sales price is absolutely essential to make this tool available to our region, where sales
• amount or sales to certain buyers.
• The median sales price is $700,000.

Committee: Joint Joint Committee on Revenue

Summary: The Joint Committee on Revenue held a public hearing on a series of bills focused largely on local-option real estate transfer fees and housing funding tools for communities facing severe affordability pressures. Testimony strongly favored bills for Somerville, Concord, Martha’s Vineyard, Nantucket, Chatham, and a statewide local-option transfer fee, with speakers arguing that high-end real estate transactions should help fund affordable housing, anti-displacement efforts, workforce housing, and related capital improvements. Elected officials and local housing leaders described rising rents and home prices, investor activity, shrinking year-round housing stock, and difficulty recruiting or retaining teachers, police, health care workers, and other essential employees. Several witnesses emphasized that the proposals would be optional for municipalities, could include exemptions for first-time homebuyers or seniors, and would direct revenue into local affordable housing trust funds or housing banks. Committee members asked questions about who would pay the fee and whether it could make housing less affordable, and supporters responded that the fees would be targeted at higher-value transactions and designed with local flexibility. For Somerville, the delegation and Mayor Katjana Ballantyne backed both a local home rule petition and statewide enabling legislation, saying the city has already used zoning reform, inclusionary zoning, and local housing funds but still needs a new revenue source to address displacement and investor-driven purchases. For Concord, Representative Carmine Gentile and Concord housing advocates supported a home rule petition and the statewide bill, arguing that a modest fee on sales above $1 million could generate predictable revenue for affordable housing production and preservation. One committee exchange focused on whether the fee would affect most Concord sales and whether it would be passed on to buyers; supporters said the policy was intended to shift costs toward higher-value properties and help leverage other funding sources. The committee also heard testimony on House 4105, which would redirect a casino-related revenue stream to the Healthy Incentives Program. Farmers, advocates, and residents said the current funding was originally intended to support horse racing but has not met that goal, and that the money would be better used to support Massachusetts farmers and food-insecure residents through HIP. In a separate bill, Senator Becca Rausch testified in support of Senate 268, which would create a state-level hostile learning environment complaint process for higher education institutions and potentially strip tax exemptions from colleges or universities found to have such environments; she cited anti-Semitic and transphobic incidents on campuses and argued that existing federal protections should be mirrored in state law. The hearing also included testimony on college tuition debt reduction legislation from Senator Michael Moore, who said the bill would allow a deduction for tuition and fees paid to Massachusetts public colleges and universities to ease student debt and support the state’s workforce. A major portion of the hearing focused on Martha’s Vineyard and Nantucket housing bank proposals. Hospital, school, housing, planning, and municipal officials from Martha’s Vineyard said the island’s year-round housing shortage is harming health care, schools, and the local workforce, and urged approval of a housing bank funded by a local-option transfer fee. Nantucket witnesses made similar arguments, pointing to a very high median home price, a large seasonal housing stock, and the need for a dedicated revenue stream to preserve and create year-round housing. Supporters repeatedly cited the long-running success of the islands’ land banks as evidence that transfer fees can work without harming real estate markets. Senator Julian Cyr and Representative Thomas Moakley Luddy also backed the Cape and Islands transfer-fee bills, saying the region needs bold action and a sustainable local funding source to address its housing crisis.

Transcript Highlights:

• Second, it requires the posting of the price of goods for all retail sales, not just sales that are in
• Second, it requires the posting of the price of goods for all retail sales, not just sales that are in
• It permits a person to change prices based on market fluctuations, uniform sales, and programs, and it
• and website sales, but the same restrictions on the physical location.
• and website sales, but the same restrictions on the physical location.

Summary: The Technology, Economic Development, and Veterans Committee met in executive session on January 28, 2026, and advanced six bills. House Bill 2325, creating a tourism self-supported assessment program for statewide tourism promotion, was amended to add certain large restaurants and retailers, adjust enforcement and governance provisions, and remove a recommendation tied to an advisory report; the committee adopted Amendment 264 and reported the substitute bill out with a due pass recommendation by a 12-0 vote, with one member excused. Members supporting the bill emphasized tourism’s economic benefits, local flexibility, and the need for stronger statewide marketing funding. House Bill 2481, addressing surveillance-based price discrimination and surge pricing for retail goods, drew the most discussion. Representative Kloba withdrew the proposed substitute, and the committee voted on the bill as written. Members debated affordability, grocery pricing fairness, and the impact on businesses; Representative Waters said she would work on the issue further but urged a no vote. The bill was reported out with a due pass recommendation on an 8-4 vote, with one excused. House Bill 2503, on documentation for data used to train AI systems, was amended to require posting information describing efforts to remove child sexual abuse material from training datasets. Supporters said the bill promotes transparency and accountability in AI, while opponents warned the measure could burden startups and smaller developers. The amended bill was reported out with a due pass recommendation on an 8-4 vote, with one excused. House Bill 2397, concerning reimbursement timing under the State Fire Services Mobilization Plan, was amended so the 60-day reimbursement clock starts when complete documentation is received; it passed unanimously with one excused. House Bill 2278, on tourism promotion areas, and House Bill 2417, updating victim protections under the Washington Code of Military Justice, were both reported out unanimously with one excused.

Transcript Highlights:

• I mean, you would not be able to mix it, if it's on-premise sales or off-premise sales, that would be
• This is 90% of my sales. So look what can... This is 90% of my sales.
• That's just sales tax alone.
• Eureka and Six Flags have a garage sale every year.
• If somebody wanted to set up a garage sale...

Committee: House Crime and Public Safety

Transcript Highlights:

• This bill will expand their sales and use tax exclusion program.
• And it's structured as a 10- to 15-year sales tax for transit operations.
• So it's currently structured as a sales tax.
• Jet fuel sales tax revenue.
• It was supposed to be 100% of the sales and use tax that would have come back.

Summary: The Assembly Transportation Committee heard several measures, beginning with SB 86, which would extend and expand the CAEATFA sales and use tax exclusion program through 2031, raise the annual cap from $100 million to $200 million, and add fusion energy. Supporters, including the State Treasurer and industry and labor representatives, cited billions in clean-tech investment, job creation, and environmental benefits; county groups opposed the bill over local revenue losses. The committee approved SB 86 on a 12-0 roll, holding the roll open for additional members. The committee then heard SB 545, which would require Go-Biz to study economic development opportunities along the California high-speed rail corridor, including land value, development incentives, and public-private partnerships. Labor, Fresno’s mayor’s office, and other stakeholders supported the bill as a way to spur corridor development and future funding opportunities, while one business group moved from opposition to neutral after amendments. The bill passed on a 9-1 vote, with the roll held open. Members next considered SB 63, a Bay Area transit funding measure authorizing a regional revenue measure to support transit operations amid looming fiscal shortfalls. The author and witnesses described severe service cuts that could follow without new funding, while committee members raised concerns about the bill’s structure, county participation, polling, and whether other revenue options should be considered. The bill advanced on a 9-3 vote, with the roll held open, and the committee also approved SB 263, directing a state study of tariff impacts on California’s economy and supply chains, on an 11-0 vote. Finally, the committee heard SB 661, which would redirect aviation-related tax revenues back to airports for aviation purposes and bring the state into compliance with federal requirements; testimony focused on airport modernization, rural access, and allocation formulas, but no final vote was taken in the portion provided.

Transcript Highlights:

• Now, it's calculated using normalized, inverted, per capita sales and use taxes, per capita assessed
• </c><00:41:58.000><c> capita</c><00:41:58.800><c> are</c> Sales and use tax per capita are Sales and
• Um in the county to sales and use tax.
• Vice Chairman Pendergraft, please. sales and use taxes to the new funding sales and use taxes to the
• We're hopeful that, uh, I think it's currently at 5.6% state share of the state sales and use tax.

Bills: HB0105 , HB0107 , SF0002

Committee: House Appropriations

Transcript Highlights:

• Now we're talking about adding user taxes and sales taxes on them.
• Unfortunately, you know, one of the other sides is that I've been to the tax sales.
• I actually have been to the sheriff's tax sales.
• I've actually walked through and looked at properties that were on the tax sale.
• But realistically, there are rarely homes that go to the tax sale.

Committee: House Ways and Means

Transcript Highlights:

• approval received, and the House Bill removing the seating capacity requirements of licenses for the sale
• premises, House No. 5339; and an act removing the seating capacity requirements of licenses for the sale
• of alcoholic beverages to be drunk on the premises in the town of Belmont for the sale of alcoholic
• An act authorizing the town of Ashland to grant 10 additional licenses for the sale of all alcoholic
• Requirements of licenses for the sale of alcoholic beverages to be drunk on the premises in the town

Transcript Highlights:

• from the general sales and use tax. tax. tax.
• from the general sales and use tax. tax. tax.
• It has an general sales and use tax.
• </c> and reduce the regressivity of the sales and reduce the regressivity of the sales and<00:28:36.160
• home sales relies on home sales uh<00:55:11.120><c> data</c><00:55:11.520><c> from</c><00:55:11.760>