Transcript Highlights:

• tax credit?
• senior tax credit, that's on their local property tax liability.
• beef tax credit, qualified equity investment tax credit, grape and wine producers tax credit, alternative
• and school tax credit.
• kinds of tax credits.

Committee: House Agriculture, Food Production and Outdoor Resources

Summary: The House Agriculture Committee first met in executive session on House Bill 2998, adopting a committee substitute that narrowed the bill to a study of the Upper Mississippi River Basin and the Rural Development Office and extended the deadline to December 1, 2029. Members discussed the bill’s roughly $3 million fiscal note and whether the proposed river-related study and power-generation concept would be a worthwhile investment. The committee adopted the substitute and then voted the committee substitute for HB 2998 do pass by a 21-0 roll call. The committee then held a public hearing on Senate Substitute for Senate Bill 913, which would extend several agricultural tax credit programs for five years, including the Missouri Agricultural and Small Business Tax Credit (Mazbita), rolling stock credits, meat processing incentives, biodiesel-related credits, specialty crop credits, and a new short-line railroad credit. Senator Curtis Gregory said the bill was intended to provide certainty and support rural infrastructure, agricultural processing, and rail access, and witnesses from the Missouri Soybean Association, Missouri Farm Bureau, Missouri Corn Growers, Missouri Chamber, short-line railroads, Missouri AgriBusiness Association, Missouri Dairy, Missouri Bankers Association, Missouri Railroad Association, and Missouri Pork Association testified in support. Opposition came from a public advocate who argued Missouri’s tax credit system is too large, lacks adequate auditing, and could cost tens of millions of dollars while adding state administrative costs. Committee members raised questions about the fiscal note, the carryforward of unused credits, and whether the rolling stock credit backfills local property tax revenue; supporters responded that the credit makes local governments whole and that the programs have strong returns on investment and help preserve agricultural and rail infrastructure. No final vote on SB 913 was taken in the transcript, and the committee adjourned after the hearing.

Transcript Highlights:

• So the $94 million increase in sales tax, for example, is the addition to the new sales tax number.
• It's not sales tax and it's not corporate income tax; it's not documentary stamp tax.
• So tax liability, property tax liability in the end, is a function of taxable value or tax base, and
• it with sales tax, how much sales tax increase would there be?
• I mean, with the state sales tax, we generate about $50 billion in taxes.

Committee: Senate Finance and Tax

Summary: The Senate Committee on Finance and Tax met for its first meeting of the session, with a quorum present and several members excused. Chair Avila opened by framing the committee’s main focus as property tax relief and housing affordability, noting the complexity of any changes to Florida’s long-standing property tax structure and emphasizing the need to preserve funding for schools and local public safety. He also introduced new committee staff member Tamisha Black and thanked staff for summer work supporting analysis of potential proposals, including constitutional amendment concepts and other property tax relief ideas. Staff director Azar Khan then presented an update on the General Revenue forecast, explaining that collections remained above estimate but at a slower pace than the prior year, with recent economic indicators slightly weaker than earlier forecasts. He said the new forecast mostly reflected modest adjustments, with a notable share of the increase coming from earnings on investment rather than the usual drivers such as sales tax or corporate income tax. Khan also gave a detailed presentation on ad valorem millages, explaining the different millage types used by school districts, counties, municipalities, special districts, and water management districts; the rollback rate; TRIM notice and hearing timelines; voting thresholds for adopting higher millages; and long-term trends showing millage rates declining over time even as total taxes levied have increased. Members used the presentations to discuss property tax relief options and the relationship between local property taxes and state revenue. President Passidomo praised staff and Senator Bernard’s summer work on proposals. President Gaetz asked about converting homestead property tax revenue to sales tax and was told the rough equivalent could be around a 2.8-cent sales tax increase, though with important behavioral and distributional caveats. Senator Rouson asked about the decline in corporate income tax estimates, and Khan said it likely reflected changes in national corporate profit expectations and collection patterns, promising a follow-up. The Department of Revenue’s Lizette Kelly confirmed that TRIM data, including adopted millages, rollback rates, and maximum millage calculations, are collected by jurisdiction and can be provided to the committee. No bills were taken up and no votes occurred beyond adjournment, which was adopted by motion.

Transcript Highlights:

• I will go through the provisions by tax category, starting with sales tax.
• Regarding mutual taxes and fees, the bill reduces the tax of 8 percent to 5 percent and reduces the tax
• and tax to the state.
• Skidmore: Palm Beach County Tax Collector has a concern about the Airbnb VRBO tax.
• and our tax committee.

Transcript Highlights:

• There's regressive taxes in Texas. There's no income tax.
• It's the total taxes, not just sales tax that matter.
• There's regressive taxes in Texas. There's no income tax.
• It's the total taxes, not just sales tax that matter.
• </c><01:24:22.040><c> we</c><01:24:22.639><c> is</c> income tax here and in sales tax we is income tax

Bills: HF1277 , HF1006

Committee: House Taxes

Transcript Highlights:

• </c> their 2027 property taxes. their 2027 property taxes.
• </c> tax levies. tax levies.
• </c> hearing in the Taxes Committee. hearing in the Taxes Committee.
• </c> And we also increased gas taxes. And we also increased gas taxes.
• </c> but the tax goes up? but the tax goes up? Really?

Transcript Highlights:

• Some states use oil and severance taxes. Some states use sales taxes.
• So you have the same issue with the ZEV fuel tax as you do with a gas tax.
• So while it's not technically a tax, it's still taxing.
• Unless the gas tax is actually repealed, we're talking about a second tax.
• That's the gas tax.

Committee: House Transportation

Summary: The Assembly Transportation Committee first took up three highway memorial naming resolutions on its consent calendar: ACR 109, SCR 78, and SCR 90. The committee approved the consent calendar on an 11-0 vote, with the roll not held open. The chair also recognized committee science fellow AJ Mendeola for his service before adjourning the bill-hearing portion and moving to an informational hearing. The informational hearing focused on alternatives to the gas tax and how other states are responding to declining fuel-tax revenue. A first panel of researchers and policy experts described the erosion of gas-tax receipts due to inflation, improved fuel efficiency, and growth in electric vehicles, and compared options such as EV registration fees, kilowatt-hour charging fees, delivery fees, transportation network company fees, managed lanes, and road usage charges. Witnesses generally said road usage charges best preserve the user-pays principle, but they also emphasized that implementation costs, privacy concerns, and public understanding remain major obstacles. Committee members raised concerns about fairness for commuters, low-income drivers, and EV adoption, while some members argued a mileage-based system could amount to a new tax unless the gas tax is actually repealed. The second panel featured state officials from Hawaii, Utah, Oregon, and Virginia describing their programs. Hawaii said it launched its road usage charge program on July 1, 2025, using existing safety-check and registration systems, with EV owners initially choosing between a per-mile charge and a flat annual fee before mandatory EV participation begins in 2028 and a broader transition plan is due by 2026. Utah described its voluntary EV road usage charge program, annual flat fee option, quarterly reporting, privacy protections, and recent cost reductions as enrollment grows. Oregon began outlining its structural funding challenges and constitutional cost-responsibility framework, while the hearing overall underscored that states are experimenting with different approaches but have not settled on a single replacement for the gas tax.

Transcript Highlights:

• It is not tax relief. It's tax... It simply moves them. It is not tax relief. It's tax shifting.
• If this is not tax reform or tax relief, and it is a tax shift like most of us know it will be, we're
• most property taxes.
• just simply about taxes.
• just simply about taxes.

Summary: The Senate took up Committee Substitute for Senate Joint Resolution 2F, a proposed constitutional amendment on property tax reform. The measure would increase the homestead exemption in stages, lower the assessment cap on non-homestead property from 10% to 5%, and limit county and municipal ad valorem tax revenues to specified uses such as public safety, education, infrastructure, natural resources, debt service, employee benefits, and certain administrative costs. Supporters, led by Senator Avila, argued the proposal would provide meaningful property tax relief and push local governments to rein in spending, while opponents warned it would shift costs to fees, reduce local flexibility, and threaten funding for core services. Several amendments were offered and rejected. Senator Sharief proposed an income-based circuit breaker for property tax relief; Senator Smith offered a sunset clause; and Senator Berman proposed revising the ballot statement to better match the amended proposal and remove outdated references. Each amendment failed on recorded votes. During questioning and debate, senators pressed Avila on the ballot language, the effect on local services, whether the legislature could later restrict local spending by statute, and whether renters would benefit. Avila said the ballot language was not his and repeatedly stated he was presenting the governor’s proposal, while also saying local governments would need to prioritize budgets and that future legislatures could address implementation details. After the amendment votes, the joint resolution was read a third time and moved into final debate. Supporters said the proposal would give homeowners relief and force fiscal discipline at the local level. Opponents, including Senators Nathan, Bracey Davis, Smith, Polsky, and Errington, argued the measure was rushed, lacked a completed fiscal analysis or replacement revenue, and could harm police, fire, libraries, parks, housing, and other local services. They also criticized the ballot summary as misleading, especially regarding the staged homestead exemption increase. The transcript ends during debate, before any final vote on the joint resolution itself.

Transcript Highlights:

• And when both taxes exist, there is a uniform tax treatment.
• And when both taxes exist, there is a uniform tax treatment.
• That's the retail sales tax, the business and occupation tax, and the property tax, which make the vast
• tax.
• . tax.

Summary: House Finance met in work session on January 13, 2026, beginning with the introduction of new member Rep. Janice Zahn and a reminder about short-session amendment deadlines. The committee then heard JLARC’s 2025 tax preference performance reviews, covering nine preferences. JLARC recommended continuing several preferences, including natural gas transportation fuel exemptions, reduced B&O rates for travel agents and tour operators, a property tax exemption for nonprofit low-income housing developers, a property tax exemption for multipurpose senior centers, a sales and use tax remittance for disabled veteran adapted housing, a trade convention attendance nexus exemption, a B&O exemption for agricultural fertilizer and seed sales, and a hazardous substance tax exemption for certain pesticides. JLARC also recommended allowing unused silicon smelter-related preferences to expire. Members asked about legislative intent, data limitations, and how performance metrics should be tied more clearly to policy objectives; committee leaders and JLARC staff discussed a new standardized rubric for future tax preference performance statements and fiscal note review. The committee also noted that bills related to some of the reviewed preferences were already introduced. For the low-income housing exemption, JLARC said nonprofit developers were building homes as intended but that the current spending-based metric did not fully reflect the policy goal, and it recommended the legislature decide whether to continue or modify the preference. For multipurpose senior centers, JLARC said the exemption met its inferred objective and recommended continuation, with possible consideration of making it permanent. For the disabled veteran adapted housing remittance, JLARC said few eligible veterans were claiming the benefit and recommended continuation with changes to improve access and consultation with the Department of Veterans Affairs. On the trade convention attendance exemption, JLARC said use was unknown but the preference likely helped keep Washington competitive with other states and recommended continuation, though members questioned the lack of direct evidence and the administrative-burden rationale. The committee then received an update from the Economic and Revenue Forecast Council. The forecast showed the U.S. economy slowing but still growing, with Washington expected to have modest growth, weak employment gains, continued personal income growth, and slow construction. ERFC said tariffs and trade policy remained the biggest risks, inflation was expected to stay elevated in the near term, and the Federal Reserve had cut rates three times in 2025 with two more cuts projected in 2026. State revenues were up $105 million in the current biennium compared with the November forecast, but down $185 million in the next biennium, with growth driven in part by recent legislative changes and improved estate tax collections. Members asked about sector-specific employment trends, the impact of high-income households on retail sales, and how state revenues compare with personal income over time. The meeting adjourned after the forecast presentation.

Transcript Highlights:

• It is a tax cut. And you and I can sit there and show it. I'm not for that. tax.
• property tax exemption.
• , what happened to my tax?
• As you know, we are both tax nerds. We really love to nerd out. A good tax policy.
• homeowners' taxes.

Bills: SJR2 , SB4 , SJR36 , SJR2 , SB4 , SJR1 , SJR5 , SB9 , SB40 , SJR2 , SB4 , SR98 , SJR40 , SJR41 , SJR42 , SJR43 , SJR44 , SJR45 , SJR46 , SJR47 , SCR13 , SB6 , SB13 , SB21 , SB826 , SB827 , SB828 , SB829 , SB830 , SB831 , SB832 , SB833 , SB834 , SB835 , SB836 , SB837 , SB838 , SB839 , SB840 , SB841 , SB842 , SB843 , SB844 , SB845 , SB846 , SB847 , SB848 , SB849 , SB850 , SB851 , SB853 , SB854 , SB855 , SB856 , SB857 , SB858 , SB859 , SB860 , SB861 , SB862 , SB863 , SB864 , SB865 , SB866 , SB867 , SB868 , SB869 , SB870 , SB871 , SB872 , SB873 , SB874 , SB875 , SB876 , SB877 , SB878 , SB879 , SB880 , SB881 , SB882 , SB883 , SB884 , SB885 , SB886 , SB887 , SB888 , SB889 , SB890 , SB891 , SB892 , SB893 , SB894 , SB895 , SB896 , SB897 , SB898 , SB899 , SB900 , SB901 , SB902 , SB903 , SB904 , SB905 , SB906 , SB907 , SB908 , SB909 , SB910 , SB911 , SB912 , SB913 , SB914 , SB915 , SB916 , SB917 , SB918 , SB919 , SB920 , SB921 , SB922 , SB923 , SB924 , SB925 , SB926 , SB927 , SB928 , SB929 , SB930 , SB931 , SB932 , SB933 , SB934 , SB935 , SB936 , SB937 , SB938 , SB939 , SB940 , SB941 , SB942 , SB943 , SB944 , SB945 , SB946 , SB947 , SB948 , SB949 , SB950 , SB951 , SB952 , SB953 , SB954 , SB955 , SB956 , SB957 , SB958 , SB959 , SB960 , SB961 , SB962 , SB963 , SB964 , SB965 , SB966 , SB967 , SB968 , SB969 , SB970 , SB971 , SB972 , SB973 , SB974 , SB975 , SB976 , SB977 , SB978 , SB979 , SB980 , SB981 , SB982 , SB983 , SB984 , SB985 , SB986 , SB987 , SB988 , SB989 , SB990 , SB991 , SB992 , SB993 , SB994 , SB995 , SB996 , SB997 , SB998 , SB999 , SB1000 , SJR40 , SJR41 , SJR42 , SJR43 , SJR44 , SJR45 , SJR46 , SJR47 , SCR13 , SB6 , SB13 , SB21 , SB826 , SB827 , SB828 , SB829 , SB830 , SB831 , SB832 , SB833 , SB834 , SB835 , SB836 , SB837 , SB838 , SB839 , SB840 , SB841 , SB842 , SB843 , SB844 , SB845 , SB846 , SB847 , SB848 , SB849 , SB850 , SB851 , SB853 , SB854 , SB855 , SB856 , SB857 , SB858 , SB859 , SB860 , SB861 , SB862 , SB863 , SB864 , SB865 , SB866 , SB867 , SB868 , SB869 , SB870 , SB871 , SB872 , SB873 , SB874 , SB875 , SB876 , SB877 , SB878 , SB879 , SB880 , SB881 , SB882 , SB883 , SB884 , SB885 , SB886 , SB887 , SB888 , SB889 , SB890 , SB891 , SB892 , SB893 , SB894 , SB895 , SB896 , SB897 , SB898 , SB899 , SB900 , SB901 , SB902 , SB903 , SB904 , SB905 , SB906 , SB907 , SB908 , SB909 , SB910 , SB911 , SB912 , SB913 , SB914 , SB915 , SB916 , SB917 , SB918 , SB919 , SB920 , SB921 , SB922 , SB923 , SB924 , SB925 , SB926 , SB927 , SB928 , SB929 , SB930 , SB931 , SB932 , SB933 , SB934 , SB935 , SB936 , SB937 , SB938 , SB939 , SB940 , SB941 , SB942 , SB943 , SB944 , SB945 , SB946 , SB947 , SB948 , SB949 , SB950 , SB951 , SB952 , SB953 , SB954 , SB955 , SB956 , SB957 , SB958 , SB959 , SB960 , SB961 , SB962 , SB963 , SB964 , SB965 , SB966 , SB967 , SB968 , SB969 , SB970 , SB971 , SB972 , SB973 , SB974 , SB975 , SB976 , SB977 , SB978 , SB979 , SB980 , SB981 , SB982 , SB983 , SB984 , SB985 , SB986 , SB987 , SB988 , SB989 , SB990 , SB991 , SB992 , SB993 , SB994 , SB995 , SB996 , SB997 , SB998 , SB999 , SB1000

Transcript Highlights:

• credit against tax owed.
• way we do taxes, where you can Federal benefit similar to our tax the way we do taxes, where you can
• Tax on it is reimbursable.
• a tax preference.
• In addition to that, that tax revenue could be affected by tax policy.

Summary: The meeting began with JLARC’s biennial executive committee elections. After confirming a quorum, members unanimously elected Representative Pollet as chair, Senator Wagoner as vice chair, Representative Orcutt as secretary, and Senator Solomon as assistant secretary for the 2025-27 biennium. The committee also approved the May 14 meeting minutes unanimously. Chair Pollet then outlined a commitment to more member input on audit scope and coordination with the State Auditor’s Office. Staff presented a preliminary report on Washington State recreation boating programs. They reported that six agencies administer boating-related activities, that the state collected about $108 million in boating-related revenue in 2021-23, and that $86 million was spent, mostly on infrastructure and water access, environmental protection, boater safety, and marine law enforcement. Staff said Washington’s boating laws and programs are broadly similar to other states and noted that the final report is expected in September. JLARC then reviewed several tax preferences. For natural gas used as a transportation fuel, staff said the preferences reduce fuel costs but did not meet emissions-reduction targets because fewer vessels and vehicles converted to natural gas than expected; staff recommended continuing some exemptions and modifying reporting requirements. For travel agents and tour operators, staff said the preference continues to provide tax relief, but large beneficiaries’ savings are rising while small beneficiaries’ use is declining, leading to recommendations to continue the small-business rate and add or revise performance metrics. Staff also reviewed a nonprofit low-income housing property tax exemption, concluding it helps developers build homes as intended but that the performance metric should better reflect housing outcomes; they recommended the legislature decide whether to continue or modify it. Other reviews covered multipurpose senior citizen centers, disabled veteran adapted housing, trade convention attendance, agricultural fertilizer and seed wholesaling, hazardous substance tax treatment for pesticides, and silicon smelter energy preferences, with recommendations ranging from continuation to expiration depending on whether the stated objectives were met. The committee then adopted the final cannabis market study for distribution. Staff reported that Washington businesses produced two to three times more cannabis than retailers sold in 2023, and that inaccurate and incomplete reporting limits the Liquor and Cannabis Board’s ability to regulate the market. The board said it concurs with the recommendations, including developing a plan for a new data system and considering broader social equity options. Finally, staff presented the proposed final report on Department of Health oversight of hospital data reporting, inspections, and complaints. Staff said DOH was late on most acute-care hospital inspections, had not fully verified third-party inspection standards, and did not adequately review adverse event correction plans or assess language access barriers in its complaint system. DOH said it concurs with all six recommendations and has already made some transparency improvements, including a public dashboard for adverse event reporting.

Transcript Highlights:

• There's regressive taxes in Texas. There's no income tax.
• Well, we have income tax here and sales tax. It is regressive.
• It's the total taxes, not just sales tax, that matter.
• It is not just sales tax that counts; those income taxes from people in Texas count.
• </c><01:23:52.560><c> we</c><01:23:53.159><c> is</c> income tax here and and sales tax we is income tax

Transcript Highlights:

• They will never give you tax relief, only more taxes.
• tax on anyone will turn into an income tax on everyone.
• That's sales tax deduction, B&O tax deduction, property tax relief.
• The carbon tax is the... ...carbon tax is the state's most regressive tax.
• taxes.

Summary: House and Senate Republican leaders held a session-opening media availability on the second day of Washington’s 60-day legislative session, criticizing Governor Bob Ferguson’s State of the State address and previewing their priorities. They said the central issue this session is affordability, and argued the state should respond with less spending, fewer taxes, and less regulation rather than new taxes or expanded government. They also said they expect a major fight over the operating budget, warned against using the rainy day fund or weakening the balanced-budget requirement, and said the state should look for savings in areas where caseloads are down but spending continues to rise, including reducing middle management in state agencies. A major focus was the governor’s proposal for a tax on high earners, which Republicans repeatedly described as an income tax and said they would oppose. They argued it would eventually expand beyond millionaires, said voters have rejected income taxes repeatedly, and said a constitutional amendment would not pass. They also criticized past tax increases such as the capital gains tax, death tax, document recording fees, and climate-related charges, saying Democrats have not provided meaningful tax relief for working families. Republican leaders said the Working Families Tax Credit is one area where they can support using existing Climate Commitment Act revenue, and they suggested other uses for those funds, including transportation and wildfire prevention. The leaders also discussed public safety and immigration, saying the governor and Democrats have been inconsistent on federal law enforcement and that coordination between agencies is essential. They said concerns about masked federal agents and immigration enforcement should be left to investigations rather than political conclusions. On child care and DCYF, they said allegations of fraud and waste should be investigated through audits or other oversight, and they rejected the idea that looking into possible fraud is offensive to honest providers. They also said they see potential bipartisan overlap on transportation and housing, but argued the governor’s housing plan relies too much on public spending and not enough on permitting reform, Growth Management Act changes, and energy code changes to increase supply.

Transcript Highlights:

• Tax increment financing fix.
• of occupational tax.
• of occupational tax.
• of occupational tax.
• </c> form, but it's up to the tax filer. form, but it's up to the tax filer.

Summary: The committee received reports on special purpose governmental entities from the Department for Local Government and the Fire Commission. DLG staff described SPGEs as limited-jurisdiction political subdivisions and reviewed the department’s registry, reporting portal, compliance monitoring, and planned system upgrades such as a two-way message center, automated noncompliance notices, and tracking for new entities and board expirations. They reported that, as of October 10, 2025, 69% of SPGEs were active and discussed compliance data by cycle, fiscal year, and district type. The Fire Commission reported that fire department mergers have reduced the number of departments by 16 since last year, largely because of volunteer staffing shortages, while financial disclosure compliance had risen to 94%. The commission also noted 509 compliance reviews, 19 in-house inquiries, seven referrals to outside agencies, and one recent federal prison sentence in a theft case. Members asked whether DLG advises SPGEs on tax rates; staff said it only performs calculations and the entities set their own rates. Questions to the Fire Commission focused on whether department reductions meant station closures; officials explained that most changes were mergers that keep physical buildings in place while combining personnel and finances to meet minimum staffing requirements. They said the trend is spread across the state but is especially pronounced in rural areas. The Kentucky League of Cities then presented its 2026 legislative agenda. Its priorities included modernizing city revenue options, increasing equity in road funding, fixing tax increment financing issues, addressing transient room tax collection from web-based platforms, strengthening emergency response coordination, clarifying massage parlor regulation preemption, correcting unintended consequences of House Bill 606, improving newspaper publication rules, and modernizing procurement statutes. KLC also said it supports allowing all cities to collect restaurant tax revenue, wants cities to receive a larger share of road funds and EV-related revenues, and seeks state collection and remittance of any future local sales tax to comply with the Streamlined Sales and Use Tax Agreement. Members asked about best-value bidding, road-fund equity, Airbnb tax litigation, EV prevalence, and disaster funding applications; KLC said cities currently must accept the lowest bid, the road split should better reflect city street costs, the Airbnb tax case remains pending, EV data by locality has not been studied, and allowing cities to apply directly for disaster funds would reduce reliance on county officials. No votes or formal actions were taken beyond approving the September meeting minutes.

Transcript Highlights:

• This bill does not raise taxes.
• And also the voters can decide whether or not to tax. So it's not an automatic tax. Thank you.
• -based tax policy.
• , digital service tax.
• They're paying their taxes. They're not able to avoid those. They're paying their taxes.

Committee: House Revenue and Taxation

Transcript Highlights:

• I love tax cuts.
• tax.
• tax authority.
• So the state passed a flat tax... ...for income tax collections.
• So the state passed a flat tax... ...for income tax collections.

Committee: House House Ways & Means Committee of Reference

Summary: The committee first heard House Bill 2780, a technical cleanup measure related to Arizona’s judicial tax lien foreclosure process. The sponsor and a witness explained that it would clarify when a foreclosure should proceed as a public sale, standardize how excess proceeds are distributed, and resolve inconsistencies left from prior reforms. Members asked about the intent to protect lienholders while ensuring former property owners can receive excess funds; the bill was then returned with a due pass recommendation on a 9-0 vote. The committee then took up House Bill 4029, as amended, which would require the Governor’s Office of Strategic Planning and Budgeting and the Joint Legislative Budget Committee to evaluate the revenue impact of federal tax conformity changes earlier in the year, and would require the Department of Revenue to issue tax forms consistent with current statute. The amendment added reporting deadlines and a trigger for the governor to assess whether a special session is needed if the revenue impact is at least $100 million. Supporters argued the bill would force earlier action on conformity and prevent tax forms from being issued based on changes not yet enacted; opponents said it added bureaucracy and could delay the long-standing practice of preparing forms based on expected conformity. The committee adopted the amendment and then approved the bill as amended on a 5-4 vote. Finally, the committee heard House Bill 4030 and the related HCR 2052, which would impose a moratorium from July 1, 2026 through June 30, 2030 on local increases in municipal and county fees, transaction privilege tax rates, and utility rates. Supporters said the measure would protect taxpayers from higher costs of living and prevent local governments from using utility rates or fees to offset other revenue needs. Opponents from cities, counties, and advocacy groups warned it could limit funding for water, wastewater, roads, public safety, and other infrastructure, especially for fast-growing or rural communities that rely on rate studies, grants, and enterprise funds. After extensive testimony and debate over municipal revenue growth, utility financing, and local control, the committee moved the bill forward; the transcript ends during the roll call and does not clearly state the final vote on HB 4030 or HCR 2052.

Transcript Highlights:

• tax reform, they essentially lowered the dollar amount of the SALT tax.
• tax reform, they essentially lowered the dollar amount of the SALT tax.
• </c> of this tax year, 2025. of this tax year, 2025.
• </c> tax committee. tax committee.
• </c> Minnesota state taxes. Minnesota state taxes.

Transcript Highlights:

• and our growing commercial tax base.
• This recreation tax would be similar to the rooms and meals tax that you've grown— is that correct?
• Is this... ...educating, because this tax means that we're taxing people where they go, not what they
• It's not a tax on entering; it's a tax on services. So yes, it would apply.
• As tax-exempt entities, districts won't pay the sales tax, excise tax, or even fuel tax that us private

Committee: Joint Joint Committee on Revenue

Summary: The Joint Committee on Revenue held a hybrid hearing on 17 miscellaneous and late-file bills, with testimony focused on several local tax and policy measures. The first major item was H. 4687 for Watertown, which would make permanent a temporary tax classification adjustment allowing the city to maintain a 50% minimum residential factor and a 175% commercial shift. Watertown officials and legislators said the change is needed because the city’s commercial growth has triggered an old statutory formula that would otherwise push a larger share of the tax burden onto homeowners, especially seniors and fixed-income residents. They said the current temporary relief expires in fiscal 2027 and warned that, without permanent action, residential tax bills could rise sharply; committee members asked about the regional business impact, commercial taxpayers such as Alexandria Real Estate, and Watertown’s stabilization and free cash balances. The committee also heard H. 4435, a Charlemont bill authorizing a tax on commercial recreation services. Town officials said the measure would help a small rural town with a large tourism and recreation economy cover increased police, fire, and EMS costs caused by visitors, while reducing pressure on local property taxpayers. A committee member questioned whether the proposal fit within existing tax law and whether it was more like a tax on entry than on services; town witnesses responded that it would apply to recreation-related services such as guides and lifts and was modeled on the meals and rooms tax. Finally, testimony was taken on H. 4722, which would promote fair tax treatment for zero-emission medium- and heavy-duty vehicles, including electric school buses and trucks, by capping sales and excise taxes at the level of comparable diesel vehicles. Supporters said the bill would remove an unintended tax penalty, help school districts and transportation providers afford electrification, and remain revenue-neutral. Representative Gentile also testified in support of H. 4722 and H. 4755, a Sudbury bill to amend the town’s means-tested senior citizen property tax exemption so the local program can continue without requiring a new special act if it lapses. No votes were taken; the hearing concluded after testimony and questions.

Transcript Highlights:

• So, what does the tax bill do?
• This tax bill delivers by providing a 12% property tax refund increase for this year.
• bill, this tax but through this tax bill, this tax bill, bill, bill, and<00:01:58.400><c> other</c><
• </c> So, what does the tax bill do? So, what does the tax bill do?
• </c> tax bill. tax bill.

Summary: Senate Tax Committee members presented a tax omnibus bill they said was a bipartisan effort aimed at making life more affordable and responding to federal policy changes they argued are increasing costs and harming Minnesota families, communities, farmers, and businesses. Chair Rest and other senators described the bill as a response to federal cuts to health care and food support, and said it also complements other Senate action on health and human services. Key provisions highlighted included a 12% increase in property tax refunds for homeowners, described as more than $100 million in direct relief; a $2 million provision related to Operation Metro Transit; a new health care sales tax in Hennepin County to replace an expiring local sales tax and help stabilize hospitals such as HCMC and North Memorial, with funds for uncompensated care and facility upkeep; and a social media tax on the largest platforms, which supporters said would raise revenue without affecting Minnesota residents. Senators also emphasized a sustainable aviation fuel credit, framed as a climate and economic development measure that could support in-state production and agricultural feedstocks. Members also discussed agricultural provisions, including lifting the cap on the beginning farmer tax credit extension and updating homestead-related rules, saying these changes would help farm transitions and reflect current conditions. Another property tax change would increase the market value exclusion for disabled veterans. No formal vote was taken in the transcript, but senators said the bill had been passed to the floor and they were waiting for leadership to schedule it, while noting the House had not yet taken similar action.

Transcript Highlights:

• California Tax? The California Tax Reform Association, which is formed of the state's labor groups.
• Oh, okay, the tax raisers. Gotcha.
• Our statewide sales tax rate is the highest in the country, and when combined with local taxes, it places
• This measure would align California law with federal tax provisions and, in turn, simplify the tax filing
• This measure would align California law with federal tax provisions and in turn simplify the tax filing

Summary: The Assembly Committee on Revenue and Taxation met as a subcommittee and announced that all bills on the agenda had revenue impacts placing them on the suspense file, so none were eligible for immediate vote. The chair also reviewed procedural rules, including the deadline for position letters and the suspense-file threshold, and later established a quorum before proceeding through the agenda. Most measures were presented, heard, and then referred to suspense without committee votes. Several bills focused on tax credits or exclusions tied to housing and property. AB 1606 proposed a five-year tax credit for small businesses facing cleanup costs from illegal dumping and encampments; AB 1971 would clarify that home-hardening retrofits are not assessable for property tax purposes; AB 2394 would create a capital gains exclusion to encourage long-term homeowners to sell and downsize; AB 1714 would offer a credit for sellers who complete required repairs for CalHFA-assisted first-time buyers; and AB 2389 would extend the property tax exclusion for newly installed solar systems. Supporters generally framed these bills as targeted relief or affordability measures, while opponents raised concerns about revenue loss, policy effectiveness, or implementation. The committee also heard a series of agriculture-related bills. AB 2427 proposed a tax credit for qualified agricultural producers to offset labor, equipment, infrastructure, and production costs, and AB 2192 would extend the state’s farm equipment sales tax exemption to local sales taxes with a General Fund backfill for local governments. Supporters argued both measures would help preserve California agriculture, jobs, and food security amid rising costs and regulatory burdens; opponents questioned the need for the subsidies and the size of the fiscal impact. Both bills were referred to suspense. Other measures included AB 1611, which would end a tax break on capital gains from single-family home sales for large corporate investors to discourage investor competition with homebuyers; AB 2522, which would exempt over-the-counter medications from sales tax; AB 2444, which would add a state deduction for ScholarShare 529 contributions and align California law with federal Roth IRA rollover rules; and AB 1550, which would allow deductions for tips and overtime. Each drew support from sponsors and allied groups, while tax reform and local government representatives opposed several bills over revenue and policy concerns. All of these measures were also sent to the suspense file, and the committee adjourned after completing its agenda.

Transcript Highlights:

• child tax credit.
• I know we covered that earlier, that through tax... Property tax refunds.
• You would be eligible if you paid a tax refund if she has zero tax liability, although she pays taxes
• They do it via property tax. They do it via property tax.
• liability but still pay taxes through sales taxes and through property taxes, which are embedded into