Transcript Highlights:

• </c> everyone a 50% tax cut. everyone a 50% tax cut.
• </c> tax issue, please. tax issue, please.
• </c> more than 50% tax reduction. more than 50% tax reduction.
• </c> pay our taxes. pay our taxes.
• , whether it be a sales tax, an increase on sales tax, or an income tax, in order to get those revenues

Transcript Highlights:

• in other taxes such as the business rent tax, that is now part of the tax package.
• in other taxes such as the business rent tax, that is now part of the tax package.
• tax.
• They can't touch sales tax, but they can sure tax property tax. They can...
• They can't touch sales tax, but they can sure tax property tax.

Summary: The House opened with prayer, a moment of silence for fallen Oviedo Officer Jimmy Serrano-Torres, the Pledge of Allegiance, and recognition of Chief Joseph Tuminelli as law enforcement officer of the day. The chamber approved the journal and adopted the special order report, and the Speaker announced a schedule change canceling the floor on Monday and starting Tuesday at 10:30 a.m. The main business was CS for HB 7033, the House tax package, presented by Rep. Duggan. He described a broad set of tax changes, including the previously passed sales tax rate reduction from 6% to 5.25%, exemptions for certain bullion sales, changes to tourist development tax (TDT) use, property tax administration updates, affordable housing-related exemptions, repeal of the aviation fuel tax, delayed natural gas fuel tax implementation, corporate income tax changes, and other provisions. Debate focused heavily on the TDT section and the bill’s property tax relief structure. Amendments to preserve local flexibility or remove the TDT restrictions were offered and debated; one Duggan amendment was adopted to allow local governments to keep 25% of TDT revenues for general use while directing 75% to property tax relief, and another amendment requiring audit certification of compliance was also adopted. A combined reporting amendment offered by Rep. Eskamani to close corporate tax loopholes was debated at length but failed. On final passage, supporters argued the bill provides immediate, permanent tax relief and affordability help, while opponents said it diverts tourism dollars away from local needs and could harm tourism-dependent counties and services. CS for HB 7033 passed the House 78-29. The chamber then took up CS for CS for HB 1221 on local option taxes, which would give local governments more control over certain local taxes and, as presented, redirect TDT revenues toward property tax relief with some local flexibility. After questions and amendments, including a Miller amendment allowing 25% of TDT revenue for general purposes and another accountability amendment, the bill moved to final debate. Members split sharply: supporters framed it as immediate tax relief and local accountability, while opponents warned it would undermine tourism marketing, infrastructure, and county budgets. The transcript ends during closing debate on HB 1221, before final passage is recorded.

Transcript Highlights:

• , additional sales tax take the sales tax, additional sales tax take the sales tax, additional sales
• So grocery taxes, their sales taxes. So grocery taxes, their sales taxes.
• I struggle every time we do tax cuts, tax exemptions. Can we we do tax cuts, tax exemptions.
• I have I have a I have a master's in tax, but I don't do my tax return in tax, but I don't do my tax
• We coupled with a previous grocery tax about 250 million in tax grocery tax about 250 million in tax

Transcript Highlights:

• And, of course, individual income tax.
• directly to the tax dollars.
• More of a volume-based tax than a value-based tax like we have on the oil side.
• So, of course, the majority comes from sales tax, expecting some continued growth in sales tax, expecting
• It is both state funding, local property taxes, and in lieu of property taxes.

Committee: Joint Budget Section

Transcript Highlights:

• the business facility tax credit.
• And then taxes over and above that go where? So the tax above that, they are exempt from that.
• You apply for the tax credit.
• We know for our tax...
• a tax credit.

Committee: House Joint Committee on Rural Economic Development

Summary: The Committee on Economic Development met with a quorum and first went into executive session, where it adopted a House committee substitute and voted House Bill 1716 due pass by a 13-0 vote, House Bill 2474 due pass by a 15-0 vote, and House Bill 2693 due pass by a 12-2 vote with one present. The committee then moved into public hearings. House Bill 3095, sponsored by Rep. Brown, would extend the business facility tax credit. Brown and witnesses from Burns & McDonnell and business groups said the credit supports retention and expansion of high-paying jobs in Missouri, especially in Kansas City, and helps the company plan future growth. No opposition was offered, and the hearing closed after several supportive witnesses testified. House Bill 3249, sponsored by Rep. Harzusa, would extend the jet fuel sales tax exemption for common carriers from 2033 to 2043 to support the planned redevelopment of St. Louis Lambert International Airport. Witnesses said the exemption helps encourage airline investment in a multi-billion-dollar airport project, and the bill drew support from regional business groups with no opposition. House Bills 2142 and 2058, sponsored by Reps. Wellenkamp and Vernetti, would combine the Missouri motion media tax credit’s two $8 million buckets into one $16 million pool and extend the sunset to 2035. Sponsors and industry witnesses said the change would improve competitiveness, support film and TV production, and help build long-term infrastructure and jobs; supporters included film office representatives, chambers of commerce, and local governments, with no opposition testimony. House Bill 2886, sponsored by Rep. Riggs, would update Missouri broadband law by raising speed standards, extending the state broadband office sunset, and addressing future federal broadband funds and provider defaults. Riggs argued the bill is needed to keep pace with AI and modern internet use and to recover federal funds; supporters from AARP and the broadband office emphasized the need for better service and longer timelines. Industry groups opposed parts of the bill, especially the exclusion of cable and concerns about overbuilding and overly strict speed requirements, while the broadband director said the sunset extension and future service needs should be considered. The committee adjourned after the hearing on HB 2886.

Transcript Highlights:

• I kind of thought everybody viewed disabled veterans and taxed. disabled veterans and tax relief the
• He said the senior tax credit is really a tax cut, because no one is actually paying the credit.
• He said that is key because it means the tax credit or tax cut will not be adjusted in a way that shifts
• He said he had heard concerns that cutting taxes for disabled veterans would cause other people’s taxes
• And for HB 2672, it's going to be $10 million for the tax credit on personal property tax.

Committee: House Veterans and Armed Forces

Summary: The committee met with a quorum and first went into executive session, where it adopted committee substitutes and voted do pass on House Bills 383, 2940, and 1869 by unanimous roll-call votes. The chair then moved to public hearings and announced shortened testimony times because of the late hour. A large portion of the hearing focused on several nearly identical proposals to provide property tax relief to disabled veterans and, in some versions, surviving spouses. Representatives Jobe, Crosley, Bolerking, Schmidt, and Jones described different approaches: tiered exemptions based on VA disability ratings, homestead-based exemptions, county opt-in or opt-out provisions, sunsets, and in some bills relief tied to assessed value or personal property/vehicle taxes. Committee members raised questions about acreage limits, transfer of benefits to new residences, remarriage of surviving spouses, annual recertification, and whether counties should have discretion. Several witnesses in favor, including veterans and veterans’ advocates, urged broader eligibility, especially for 100% permanent and total veterans and those with individual unemployability, and argued the benefit would help veterans remain in Missouri. A public advocate opposed the bills on fiscal grounds, citing large projected costs to local governments, school districts, and state funds. The committee also heard testimony from veterans and advocates on the importance of recognizing spouses and families, and on the need to avoid burdensome county administration. Representative Schmidt presented two related bills, one offering a percentage-based property tax discount and another creating a homestead tax credit with county participation and a market-value cap; members discussed combining the measures and revising sunset and spouse language. Representative Jones presented bills extending relief to 100% disabled veterans and to personal property/vehicles, emphasizing that counties could opt in and that the credit should not shift costs to other taxpayers. The hearing ended before the final witness finished, and the committee adjourned.

Transcript Highlights:

• actually help workers through common-sense policies such as no tax on tips, no tax on overtime, as well
• That means tax conformity.
• No tax on tips things hit them.
• </c> with excess taxes, um, excess spending. with excess taxes, um, excess spending.
• </c> that we need to do full tax conformity. that we need to do full tax conformity.

Transcript Highlights:

• It goes back to the people who paid it, whether it's through income tax or property tax or ways that
• It goes back to the people who paid it, whether it's through income tax or property tax or ways that
• </c><00:03:35.840><c> or</c> it whether it's through income tax or it whether it's through income tax
• The legislature already has the authority to use projected budget surpluses for tax rebates or tax cuts
• The legislature already has the authority to use projected budget surpluses for tax rebates or tax cuts

Summary: The committee took up House File 4, first adopting the H004A1 amendment without objection. The author described the bill as a constitutional amendment intended to create a tax relief account funded from projected budget surpluses, defined as revenues exceeding 105% of projected expenditures based on the November forecast. Supporters framed the proposal as a way to return excess taxpayer money to families, homeowners, and seniors rather than allowing the state to retain or redirect it. Testimony in support came from Ranna Lee of Americans for Prosperity, who praised the bill’s clarity and argued that taxpayers are overburdened and should receive surplus funds back; she also suggested broader tax and budget reforms, including rate reductions and tighter spending limits. Nan Madden of the Minnesota Budget Project testified in opposition, saying the legislature already has authority to use surpluses for rebates or tax cuts and warning that constitutionalizing tax policy would reduce flexibility, weaken accountability, and make it harder to respond to changing conditions, emergencies, or recessions. Members then briefly commented, with Republicans expressing support for returning money to taxpayers and citing cost-of-living pressures and fixed incomes. The committee did not hear a formal department position. At the end of the hearing, Representative Johnson renewed the motion that House File 4, as amended, be recommended to pass and sent to the Ways and Means Committee; the motion prevailed on a voice vote.

Transcript Highlights:

• I mean, we have a billion-dollar grocery tax bottle bill, two-dollar cigarette tax, taxes on prescription
• drugs, taxes on insurers, taxes on first mortgage loans, and taxes on health care reserves.
• Of all of the tax increases on the table.
• I mean, this income tax, the other side likes to say that it's to right-size our regressive tax system
• Senator McEwen mentioned, obviously, the need for fixing the actual taxes with actual real tax relief

Summary: House and Senate Republican leaders held a media availability focused on the final stretch of the legislative session, with repeated criticism of Democratic budget proposals and several policy bills. They said they were especially concerned about an environmental crimes bill they argued would impose excessive penalties for workplace mistakes, as well as bills they described as anti-law-enforcement, including measures related to police face coverings and sheriff qualifications. They also discussed a proposed income tax, calling it unconstitutional and urging that it be sent to referendum if it advances. A major topic was the operating, transportation, and capital budgets. Republicans said the operating budget relies on one-time fund sweeps, raids the rainy day fund and pension assets, and assumes future income-tax revenue while cutting Medicaid, child care, schools, and other services. They said the transportation budget has some positive emphasis on road preservation but criticized ferry funding and the proposed sweep of the Public Works Trust. On the capital budget, they were less specific and described it as generally bipartisan. The lawmakers also addressed reports of fraudulent or duplicate sign-ins on the income-tax bill, saying any abuse should be investigated but that many duplicate entries may have been accidental rather than malicious. They said the system should be improved with better verification, but maintained that more than 100,000 unique people had signed in opposition. Other issues discussed included opposition to using pension funds to balance the budget, criticism of a Sound Transit proposal for 75-year bonds, concerns about a bill requiring arbitration before lawsuits against the state or local governments, and objections to child care budget changes they said would hurt rural and property-poor communities without broader regulatory reform.

Transcript Highlights:

• off the tax rolls.
• And that is not taxed by the property tax, then everybody else's property taxes go up and a number of
• </c> types of property tax exemption. types of property tax exemption.
• </c> those tax payments April 15th. those tax payments April 15th.
• It's a tax increase. We're increasing taxes.

Summary: The Ways and Means Committee held a public hearing on Senate Bill 291, which would update religious land-use and property tax exemption rules for church-owned parsonages, parish houses, and similar properties. Senator Tim Lang, speaking for the sponsor, said the bill was intended to address situations where former parsonages are no longer occupied by clergy and are instead used for church-related purposes such as housing staff, religious education, or congregate living tied to ministry, including addiction recovery. He emphasized that the bill was not meant to create commercial rental housing and that it also preserves reasonable zoning and environmental regulations. Committee members pressed the sponsor on how the bill would be applied, especially the meaning of “religious purposes,” the six-unit limit, the “same lot” language, and whether churches could use the exemption to rent units for revenue. The sponsor said the six-unit cap was added to prevent large-scale commercial rental use, that congregate housing would be limited and defined, and that the bill was meant to cover uses like substance abuse recovery, homes for unwed mothers, and religious education, but not apartments converted for ordinary rental. He also said churches would still file annual exemption paperwork and towns could challenge claims they believed were commercial. Questions also raised concerns about whether the bill treated religious and nonreligious housing trusts differently; the sponsor responded that the bill was aimed at church-owned property used in pursuit of a religious mission. Several witnesses testified in support. Representative Mark Pearson, an active clergyman, said the bill would not remove additional property from the tax rolls because clergy housing allowances typically lead clergy to buy taxable homes elsewhere, while the church-owned parsonage remains exempt. Nick Taylor of Housing Action New Hampshire supported the bill as a modest expansion that could help create more attainable housing by allowing better use of existing religious land and structures, though he noted his organization would support even broader use. The hearing ended without a vote or final action, and the chair closed questions after the testimony.

Transcript Highlights:

• I think the B&O tax is an equally inequitable tax that we should fix and have a tax on net receipts rather
• I think the B&O tax is an equally inequitable tax that we should fix and have a tax on net receipts rather
• That is an excise tax on the sale or transfer of property. It's not a property tax.
• The phrase tax expenditure is often how we talk about that in technical tax world.
• Such that the tax rate would be changed to a lesser tax rate.

Bills: SB6061 , SB6234 , SB6170 , SB6176 , SB6182 , SB6335 , SB5647 , SB6047 , HB2367 , HB2606 , SB6129 , SB6228 , SB6231 , HB2235 , HB2272 , HB2340 , HB2543 , HB2554 , HB2632 , HB2464 , HB2619

Summary: The Senate opened with ceremonial items, then moved through gubernatorial appointments and a series of floor votes. It confirmed Acacia E. Ingram to the Evergreen State College Board of Trustees, Ashland J. Tibbet and David S. Frockt to the Western Washington University Board of Trustees, and Christine Rolfes to the Olympic College Board of Trustees. Members spoke in support of the appointees’ public service and ties to higher education. The chamber also heard a personal privilege statement honoring a Colfax basketball coach who died of pancreatic cancer, followed by a caucus break. The Senate then considered several bills, passing measures on derelict vessels (SHB 2199), radiologic technologist supervision (HB 2113), nitrous oxide retail sales (ESHB 2532), ambulance transport fund alignment (HB 2531), EMT recertification (HB 2540), affordable housing on religious property (2SHB 1859), factory-built housing standards (SHB 2151), social housing public development authorities (EHB 1687), the Washington Voting Rights Act and voter suppression claims (ESSHB 1750), privacy and data protection reporting and AI use (HB 2606), military family school stability (ESHB 2534), coal-fired utility treatment (HB 2367), and school access to albuterol (SHB 2360). Most passed on strong bipartisan roll calls, though the voting-rights bill and coal-utility bill drew the most debate and partisan division. Several bills were amended on the floor. The Senate adopted changes to the nitrous oxide bill, the factory-built housing bill, the social housing bill, the albuterol bill, and the 3D-printer/firearm-manufacturing bill (ESHB 2320), while rejecting some proposed amendments on the voting-rights and 3D-printer bills. Debate centered on whether the voting-rights bill set too low a threshold for lawsuits and whether the coal-utility bill gave improper treatment to coal generation; supporters framed both as needed protections or transition measures, while opponents warned about litigation and policy overreach. The chamber also discussed tribal consultation in energy siting (SHB 2496), ultimately passing it after a close vote, and later returned to the 3D-printer bill, which advanced after amendments narrowed exemptions for gunsmiths and dealers and clarified the bill’s focus on digital files used to manufacture firearms.

Transcript Highlights:

• Like other similarly functioning gross receipts taxes on business inputs, this tax will increase operating
• taxes on electronic commerce, as the tax is on digital advertising, not all advertising.
• So the Maryland advertising tax imposes a tax on annual gross revenue derived from digital advertising
• And the tax rates range from 2.5% to 10%. It's a broad form of tax.
• Nobody likes taxes. Everybody hates taxes.

Committee: House Revenue and Taxation

Transcript Highlights:

• </c><01:49:05.440><c> which</c> tax and that's what it is a tax which tax and that's what it is a tax
• tax, a state tax, and an airport tax if I happen to stay near one.
• tax, a state tax, and an airport tax if I happen to stay near one.
• tax, a state tax, and an airport tax if I happen to stay near one.
• occupancy tax a includes a city tax occupancy tax a state<01:51:10.639><c> tax</c><01:51:11.320><c>

Committee: House Municipal and County Government

Transcript Highlights:

• I don't see this tax credit as a liability. I see this tax credit as an investment.
• AB 1519 does not forgive taxes.
• definition of tax elsewhere.
• And that's where the historic tax credits come in. 38 states have historic tax credit programs.
• revoke our state tax-exempt status.

Committee: Senate Revenue and Taxation

Transcript Highlights:

• was the tax selected.
• , excise tax?
• So providing a tax credit wouldn't necessarily be beneficial. have corporate income tax.
• was a tax re-selected.
• taxes that a refinery would pay.

Summary: The meeting began with a budget subcommittee hearing on a proposed sustainable aviation fuel (SAF) tax credit trailer bill. Assembly Members Ávila Farías and another member spoke in support, emphasizing union jobs, refinery investments, and the need to decarbonize aviation. The Department of Finance said the Governor’s proposal would provide a $1 to $2 per gallon credit against the diesel excise tax for SAF sold in California from 2026 to 2036. The Legislative Analyst’s Office recommended rejecting the proposal, arguing it is a relatively expensive way to reduce emissions, has uncertain environmental benefits, could significantly reduce transportation revenues, and conflicts with the spirit of voter restrictions on transportation taxes. Committee members questioned whether the credit would mainly benefit out-of-state producers, whether firms would have diesel tax liability to use the credit, and whether the proposal would shift production away from renewable diesel and raise fuel prices. Administration and CARB staff said the credit is intended to support aviation decarbonization, preserve jobs, and help keep California on track toward its 2045 climate goals. LAO and UC Berkeley testimony countered that the policy could mostly subsidize existing technologies, that feedstock supply is limited, and that the net emissions benefit may be small relative to the cost. Members also asked about the effect on local streets and roads, SHOP, and trade corridor funding; Finance estimated a $165 million annual revenue impact would reduce those programs, while LAO said the reductions would mean fewer projects over time. No vote was taken, and the chair said the issue would remain open for further discussion. The committee then moved to a zero-emission vehicle incentive trailer bill proposing a one-time $200 million appropriation to CARB for a new point-of-sale incentive program focused on first-time buyers and leases of new and used light-duty ZEVs. Supporters said the program would help offset the loss of the federal EV tax credit, maintain momentum in California’s ZEV transition, and use a one-to-one match with participating automakers to double the state’s investment. LAO recommended rejection, saying the proposal does not meet the high budget bar this year, lacks enough program detail to evaluate, is unlikely to move sales significantly given the size of the appropriation, and could duplicate existing state and utility programs. Members asked about current incentives across light-, medium-, and heavy-duty sectors, the recent decline in ZEV sales, and whether the program would help lower-income buyers rather than subsidize purchases that would have happened anyway. CARB said the proposal is meant to fill a gap in the light-duty market, where sales fell sharply after the federal credit expired, and noted existing programs for other vehicle classes. The Department of Finance also addressed a separate question about the Motor Vehicle Account, saying a previously planned GGRF transfer was no longer needed because updated forecasts showed the fund had sufficient balances, though LAO said the account still has a structural long-term imbalance. The discussion ended before any vote or action on the ZEV proposal.

Transcript Highlights:

• Well, good morning, everybody, and welcome back to Finance and Tax.
• House Bill 1382, which is the gas tax.
• So we're not going to take any further action on the gas tax for now.
• Under current law, most people pay their property taxes.
• The next issue is with the tax statements.

Bills: SB2397

Committee: Senate Finance and Taxation

Summary: The Senate Finance and Tax Committee met and first took up House Bill 1382, the gas tax bill. Members explained an amendment to ensure that the proposed three-cent gas tax distribution would include all counties and townships in oil-producing counties, rather than excluding non-oil-producing counties as in the original draft. The committee adopted the amendment unanimously, but then held the bill for the time being because of related work on the Department of Transportation budget in the House. The committee then turned to House Bill 1168, a large hoghouse amendment that combined the bill with the contents of House Bill 1176 and added technical corrections. The proposal would raise the primary residence property tax credit maximum from $1,250 to $1,650, keep the 75% cap with a $500 floor, and extend the credit to voter-approved levies while excluding special assessments. Other changes discussed included aligning the disabled veterans property tax credit with the $200,000 exemption level, adjusting budget and distribution dates so taxing districts are made whole sooner, exempting townships from a general-election vote requirement for levy increases, and modifying school funding formulas so schools are not shortchanged if mill levies are reduced under the cap. Testimony from the Association of Counties and the State Supervisor of Assessments was generally supportive of the technical cleanup and implementation changes, but they raised concerns about the June 1 distribution date, application timing, and the practicality of some programming and administrative changes. Committee members also discussed the policy and messaging implications of the 75%/floor structure and the difficulty of applying the credit to certain voter-approved levies. No final action was taken on House Bill 1168; the committee agreed to continue working on amendments and recessed until later in the day.

Transcript Highlights:

• That is what is reported to the tax department on actual tax returns filed.
• Okay, so we're going to the 125 agenda item, tax updates, and we have our tax commissioner here.
• income tax.
• income tax changes.
• income tax.

Summary: The Government Finance Committee met with new leadership, approved the December 11 minutes, and received a series of informational updates on the state’s finances and related policy issues. The Office of Management and Budget reported the general fund is tracking very close to forecast, with revenues about $2 million above forecast and an estimated ending balance of about $397 million, higher than previously expected. OMB also reviewed balances in major funds, including the budget stabilization fund, legacy fund, foundation aid stabilization fund, social services fund, and strategic investment and improvements fund, and answered questions about oil tax revenues and fund management. The Tax Department provided updates on taxable sales and purchases by county and industry, noting Cass County as the largest county by taxable sales and that retail trade remains the largest industry sector. Tax Commissioner Brian Kroshus also discussed the federal One Big Beautiful Bill Act and its estimated effects on North Dakota income tax collections, explaining that the projected revenue impacts are measured against a 2025 baseline and that some provisions are temporary while others are permanent. He also reported that primary residence tax credit applications were running ahead of last year, with more than 154,000 received so far and an expectation of roughly 160,000-plus applications. The committee also heard fee-study presentations from the Department of Transportation and the Information Technology Department. DOT explained that driver’s license fees cover only about half of program costs and that the shortfall is subsidized by the highway fund, while also noting recent changes such as the blackout plate and motor vehicle excise tax distribution changes. NDIT described its internal service fund model, current billing structure, and possible future changes to simplify invoices and billing frequency. Legislative staff also updated the committee on office space needs in Bismarck-Mandan and on legislative branch space planning, and subcommittees reported progress on fixed-route transit funding and regional jail capacity, including a visit to the Burleigh-Morton detention facility and discussion of future prison bed needs. No formal votes or legislative actions beyond approving the minutes were taken, and the committee adjourned with its next meeting set for June 25.

Transcript Highlights:

• Tax relief for these projects means everyone else has to absorb higher property taxes at a time when
• Tax relief for these projects means everyone else has to absorb higher property taxes at a time when
• Notice requirements and effective dates for local real estate excise tax and lodging tax rate changes
• There is an exception for lodging taxes that are created against the state sales tax.
• Your continual raising of taxes every single session doesn't mean if you'll eventually tax me out of

Summary: The committee took up executive action on the capital budget, Proposed Substitute Senate Bill 6003, and several policy bills. Staff described amendments to the capital budget that shifted funding among behavioral health, local/community projects, irrigation projects, and juvenile rehabilitation capacity, plus a technical fix to the water pollution control revolving program. The committee adopted Senator Dozier’s budget-neutral amendment and a technical amendment, then advanced the amended capital budget to the Rules Committee. It also moved House Bills 2441, 2124, 2471, 2133, 2610, and 2338 forward with due-pass recommendations, and advanced Engrossed Second Substitute House Bill 2251 on Climate Commitment Act accounts to the Transportation Committee after adopting two amendments and withdrawing three others. A major public hearing focused on Engrossed Second Substitute House Bill 2034, which would terminate and restate LEOFF Plan 1 in 2029, transfer surplus assets, and direct portions to the Climate Commitment Account and the pension funding stabilization account. Staff said the plan is currently about 160% funded and explained the bill’s IRS-review process, statute of limitations, and estimated implementation costs. Testimony was sharply divided: some retirees, firefighters, counties, and cities opposed the bill as an improper use of pension assets and urged benefit enhancements or protection of local medical obligations, while others supported using the surplus for broader public purposes. No vote was taken on the bill during the hearing. The committee also heard House Bill 2179 on PERS coverage for certain port workers, with ports and the Washington Public Ports Association supporting clarification for railroad employees covered by the federal railroad retirement system. House Bill 1069, allowing Department of Corrections employees to bargain over supplemental retirement benefits, drew support from Teamsters and corrections workers, while House Bill 2091, expanding employee-information sharing with bargaining representatives, drew union support and privacy objections from Washington Policy Center. Finally, Second Engrossed Substitute House Bill 1210 on targeted urban area tax preferences drew support from labor, local governments, and project proponents, and opposition from contractor groups and environmental advocates over project labor agreement requirements and nuclear-related concerns; Engrossed Substitute House Bill 1408 on community preservation and development authorities and Engrossed Second Substitute House Bill 1974 on land bank authorities for affordable housing were also heard, with both receiving supportive testimony from community and housing advocates.

Transcript Highlights:

• Most of that stuff is taxed when you buy it.
• All those products are going to get taxed when you sell them. It's just another layer of tax.
• tax, including tax on inventory, stands out as a negative factor when businesses consider expanding
• Current law allows a taxing unit to levy an unrestricted interest and sinking property tax rate to generate
• It does permit a taxing entity to adopt an interest and sinking taxing rate higher than the minimum rate

Bills: SB32 , SB464 , SB996 , SB1163 , SB1173 , SB1277 , SB1452 , SB1453 , SB1548 , SB1882 , SB1883 , SB2016

Committee: Senate Local Government

Summary: The Senate Local Government Committee heard several bills by Senator Bettencourt focused on property tax and local government accountability. SB 32 would provide about $700 million in business tax relief by raising the business personal property exemption from $2,500 to $25,000 and continuing a 20% franchise tax credit for inventory taxes paid. Witnesses from NFIB, the Texas Retailers Association, and Texas Realtors supported the bill, saying business personal property and inventory taxes are burdensome and especially hard on small businesses. After no opposition testimony, SB 32 was left pending. The committee also heard SB 1453, which would change how interest and sinking tax rates are calculated by using only the minimum debt service required under bond schedules, while still allowing a higher rate with a 60% governing body vote and a public explanation. A witness from the Texas Taxpayers and Research Association supported the bill as a way to keep debt rates from rising as property values increase and to preserve tax relief. The bill was left pending after testimony. SB 1883 would tighten rules on local impact fees by requiring 60 days of public availability for capital improvement plans and land use assumptions, raising the approval threshold for adopting impact fees from a simple majority to two-thirds, limiting how often fees can be increased, and expanding notice requirements. Builders and developers testified in support, arguing that impact fees are often poorly reviewed, lack accountability, and are passed on to homebuyers, worsening housing affordability. Committee members discussed adding audit provisions and questioned the lack of city testimony. The bill was left pending with subcommittee action. SB 1452 would require a voter election to decide whether a municipal management district continues to exist, with dissolution if voters reject it; supporters said it would add accountability, while others noted some districts provide essential services and infrastructure. The committee heard testimony from district representatives and builders, then left SB 1452 pending before recessing.

Transcript Highlights:

• By way of background, tax increment financing is a method of allocating a portion of taxes to finance
• The apportionment of taxes within the increment area are distributed as follows: Each taxing district
• must receive the portion of its regular property taxes produced by the rate of tax levied by or for
• the taxing district on the tax allocation base value for that increment area, and the local government
• district approve a property tax levy lid lift, the impacted taxing district and the local government

Summary: The Senate Local Government Committee waived the five-day notice rule and then took up two House bills. HB 2418 would tighten and expand permit-review timelines for residential projects, including requiring “procedural completeness” determinations, adding excluded time periods, extending timeline and refund requirements to certain fee-charging state and local entities, creating review deadlines for special purpose districts and public utility districts, and requiring local governments to designate a permit responsible official and a single point of contact. The sponsor said the bill was intended to improve predictability and reduce delays in permitting; builders and housing advocates strongly supported it, while sewer and water districts and county representatives raised concerns about incomplete referrals, staffing shortages, business-day versus calendar-day deadlines, and the cost of implementing the new contact requirements. The committee heard testimony but took no final vote on the bill in the transcript. HB 2451 would revise Washington’s local tax increment financing program. Staff explained that the bill adds guardrails and transparency, changes notice and hearing requirements, adjusts the assessed-value cap for increment areas, adds public safety facilities to eligible improvements, requires more detailed project analyses and annual reporting, and creates a negotiation/mediation/arbitration process for impacts to taxing districts. The sponsor said the measure was a carefully negotiated compromise intended to address junior taxing district concerns without creating an opt-out. Supporters from the Port of Tacoma, fire chiefs, cities, and counties said the bill improves the earlier TIF framework by strengthening the but-for test, notice, and participation rules, while counties still expressed concern about cumulative impacts and asked for future opt-out discussions. No final committee action was taken in the transcript.