Transcript Highlights:

• I am going to go tax by tax, and Mr.
• Next tax is tobacco tax.
• tax and private railroad car excise tax, timber tax, and the statewide education property tax—these
• tax that tax has interest and dividends tax that tax has been<01:56:16.400><c> repealed</c><01:56:17.400
• gets</c> has income taxes and sales taxes gets has income taxes and sales taxes gets more<02:11:38.920

Summary: The committee meeting began with an overview from the Legislative Budget Assistant Office on how Ways and Means will work with agencies and leadership during the budget and revenue-estimating process. Staff explained that the governor’s budget is still being developed, agencies are cautious about going on record early, and the committee will use worksheets and updated fiscal reports to track estimates. The presentation emphasized that the fiscal year 2025 budget status is a point-in-time snapshot and remains fluid because the annual comprehensive financial report has been delayed, which could change the beginning balances for both the general fund and education trust fund. The budget update highlighted that the general fund is currently stronger than originally assumed, while the education trust fund is weaker. The speaker said the general fund began FY25 with a much larger balance than expected, while the education trust fund came in lower due to higher-than-budgeted adequacy spending and weaker business tax performance. Revenue trends showed the general fund slightly ahead year to date, but the education trust fund down significantly. The committee also discussed unbudgeted appropriations, including attorney general litigation, legal settlements, abandoned property claims, adequacy true-ups, and education freedom accounts, as well as the role of lapses and off-budget items in the final balance. Members asked about the delayed liquor commission audit and whether it could affect revenue forecasts. Staff said the delay was mainly caused by the commission’s switch in point-of-sale systems and staffing losses, but did not expect major ongoing reporting issues. They also noted that liquor fund variances are more likely tied to Medicaid expansion costs than to commission operations. The governor’s office was said to be working on possible budget reductions, but no January request to the fiscal committee was expected. Commissioner Lindsay Stepp of the Department of Revenue Administration then presented an overview of state revenue sources, focusing first on the meals and rentals tax. She explained that DRA administers 14 taxes that account for most state revenue, and that meals and rentals tax growth has slowed after strong post-pandemic gains. She described factors affecting the tax, including employment, inflation, fuel and food prices, wages, and weather, and noted that online platforms like Airbnb have improved compliance by collecting and remitting tax on behalf of hosts. Members asked about short-term rental compliance and how DRA identifies unlicensed rentals; Stepp said referrals, anonymous tips, and platform data help enforcement.

Transcript Highlights:

• And when we talk about the tax provisions, we have an increase in the child tax credit.
• Of an increase in the taxes.
• The main ones I’ll touch on first of all: the next full conformity for tax year 2025 and for tax year
• House Bill 4152 continues the next full conformity for tax year 2025 and tax year 2026.
• conformity, full tax relief, because... ...providing full tax conformity, full tax relief provided by

Summary: House Republican caucus met on April 29 to review the FY 2027 budget package and several related “budget implementation” bills, with Chairman Livingston noting that HB 2415 was being held. Staff and members walked through HB 4138, the General Appropriations Act (“feed bill”), which appropriates about $17.96 billion from the general fund and includes one-time fund transfers, 5% lump-sum reductions for most agencies, funding for the state health insurance plan, school facilities, child care, correctional officer stipends, public safety, and other prior-year items. Members emphasized that the budget reflected House and Senate negotiations after the governor left budget talks, and Republican leaders framed it as a package that lowers taxes, shrinks government, and funds priorities such as K-12, child care, foster care, and public safety. The caucus then reviewed a series of mostly standard budget bills: HB 4139 on gaming/racing assessments; HB 4140 on federal monies, the budget stabilization fund, and ACE initiative savings reporting; HB 4141 on capital outlay, highway construction, airport funding, and rural transportation match funds; HB 4142 on commerce and lottery distributions; HB 4143 on corrections reporting; HB 4144 on environmental provisions and water-related fund uses; HB 4145 on state employee health insurance premiums and DES reforms; HB 4146 on higher education funding provisions; HB 4147 on SNAP administration and error-rate reduction; HB 4148 on K-12 inflation adjustments, school facilities, and ASDB property-sale oversight; HB 4150 on county expenditure flexibility and state office rent rates; HB 4151 on the Department of Revenue’s integrated tax system funding and related charges; HB 4152 on tax conformity, deductions, and repeal of several renewable-energy tax preferences and the Rio Nuevo diversion; and HB 4153 on transportation reporting. Discussion repeatedly centered on health plan solvency, SNAP/ACCESS eligibility and fraud controls, school funding, rural transportation, and tax conformity and relief. The caucus also took up several blue-sheet bills: HB 2035 on extended-family placement notifications in child welfare cases; HB 2170 restricting certain PRC-controlled companies from state IT contracts; HB 2249 expanding Parents’ Bill of Rights provisions; HB 2573 on DUI interlock/restricted-license rules and psychotherapy definitions; and HB 2873, which was amended to allow withdrawal of referendum petitions before ballot qualification. HB 2415 was held. The Speaker closed by praising the caucus for its budget work, saying the package delivers tax relief, protects vulnerable populations and public safety, and reflects months of Republican negotiations, and the meeting adjourned to the floor.

Transcript Highlights:

• This amendment would modernize the Tax Reform Code by taxing digital ads.
• This is a corporate revenue tax, not a tax passed through to families.
• Today we can eliminate the tax exemption on big tech and use the revenue to offset the gas tax.
• In essence, the taxes data centers will pay will offset our gas tax.
• Pennsylvania won't be paying that gross receipts tax because basically we're taxing ourselves.

Summary: The Senate returned from recess and first handled routine calendar matters, laying several bills on the table or over in their order without objection. The chamber then took up Senate Bill 1400, which addresses sentencing for second-degree murder in response to the Pennsylvania Supreme Court’s Commonwealth v. Lee decision. Senator Street offered an amendment to replace mandatory life without parole with parole eligibility after 25 years and individualized review, but the Senate tabled the amendment by a 26-24 roll call. The bill then advanced to final passage after extended debate over whether it adequately met the court’s constitutional ruling and how it would affect victims, culpability, and retroactivity. It initially passed 31-19, then after reconsideration and a correction to one member’s vote, passed 30-20 and was sent to the House. The Senate next considered Senate Bill 1212, which tightens the handling of sexual assault evidence kits by removing discretionary language that had contributed to inconsistent testing practices. Supporters said it would improve statewide consistency, preserve a survivor’s right to decline testing, and help reduce the rape kit backlog. The bill passed unanimously, 50-0, and was sent to the House. The chamber then moved through additional calendar items, including re-referrals of several House bills to Appropriations and multiple bills being passed over. Later, the Senate took up House Bill 1667 on a supplemental calendar after suspending the rules. The bill became the vehicle for several amendments tied to affordability and tax policy. Senators adopted a back-to-school sales tax holiday amendment, a data-center tax exemption repeal amendment, and a school-choice-related amendment transferring EITC provisions and increasing scholarships by $25 million. Other proposed amendments, including a digital advertising tax and a combined reporting corporate tax reform, were tabled. After further debate on the bill’s impact on electric bills, data centers, and the state budget, House Bill 1667 was agreed to as amended and the Senate recessed.

Transcript Highlights:

• </c> this bill does is giving a sales tax this bill does is giving a sales tax exemption<00:03:32.680
• </c> $165,000 would be exempt from sales tax $165,000 would be exempt from sales tax if<00:03:40.760>
• </c> or is that a different type of tax or is that a different type of tax exemption<00:31:27.480><c>
• The tax exemption would apply to locally assessed taxes, so if cities have a local tax or like the metro
• The tax exemption would apply to locally assessed taxes, so if cities have a local tax or like the metro

Committee: House Housing Finance and Policy

Transcript Highlights:

• So, as Representative Greenman said, tax expenditures, tax credits, and tax deductions are examples of
• So, as Representative Greenman said, tax expenditures, tax credits, and tax deductions are examples of
• So, as Representative Greenman said, tax expenditures, tax credits, and tax deductions are examples of
• So, as Representative Greenman said, tax expenditures, tax credits, and tax deductions are examples of
• ><c> heard</c> financing a tax expenditure as we heard financing a tax expenditure as we heard representative

Transcript Highlights:

• What it does is it moves smokeless tobacco to a more fair tax, and it's taxed on a weight basis instead
• Well, the way we tax it as far as a percentage basis, that means their taxes are higher than a cheaper
• New Mexico, like I said earlier, our tax is at 60%. New Mexico's tax rate is at 25%.
• Texas taxes on the weight, like I said, they're part of those states in the United States that tax on
• And so the author mentioned the taxes for gas taxes.

Bills: HB2933 , HB3041 , HB3048 , HB3081 , HB3297 , HB3338 , HB3673 , HB3790 , HB3983 , HB4105 , HB4139 , HB4203 , HJR1023

Committee: Senate Business and Insurance

Summary: The Business and Insurance Committee considered a long agenda of bills and executive nominations. Among the bills, it advanced measures to update fire extinguisher industry age restrictions and application rules (HB 381), create a five-day cancellation right for homeowners after severe storm-related contracts (HB 3790), require a biennial workers’ compensation medical fee schedule update (HJR 1023), create the Oklahoma Home Services Act to standardize home service contract disclosures (HB 4139, amended to correct a wording error), cap surcharge fees and add a career tech exemption (HB 3041), create the Oklahoma Tolling and Recovery Board (HB 3297), allow expired electrical contractor licenses to be reinstated without re-examination (HB 3673), clarify who is not a security guard for licensing purposes (HB 4105), create a licensing framework for in-ground pool contractors effective November 1, 2027 (HB 3338), and streamline surplus lines insurance procedures and premium tax enforcement (HB 3048). One bill on smokeless tobacco taxation (HB 3983) drew extended debate over whether a weight-based tax would be fairer and revenue-neutral; after questions about health impacts, reporting, fraud concerns, and inflation, the bill failed to receive a second and was left in committee. HB 3041 also drew significant debate over whether it would effectively allow higher credit card surcharges, but it ultimately passed 5-4. The committee also heard numerous executive nominations, all of which were approved and sent to the full Senate. Those included Michael Stop and Michael Bauer to the Oklahoma State Athletic Commission, Michael Cantrell and Burrell Sears to the Oklahoma Abstractors Board, Richard Willoughby to the State Board of Licensure for Professional Engineers and Land Surveyors, E. Keith Mitchell and Andrew Revelis to the ABLE Commission, Jackie Ward to the alarm, locksmith, and fire sprinkler industry board, Terence Shreve to the Used Motor Vehicle Dismantler and Manufacturer Board, and Adra Berry as Cabinet Secretary of Licensing and Regulation. Nominees generally described their professional backgrounds and commitment to public safety, regulation, or industry expertise, and several senators spoke in support of their service. Most nominations passed unanimously or near-unanimously.

Transcript Highlights:

• It modifies the use tax base for the use tax component of the luxury vehicle tax, the luxury aircraft
• tax, and the recreational vessel tax such that the value of any trade-in may not be deducted from the
• measure of tax.
• vessel tax and the luxury vehicle tax for trade-in property of like kind.
• The issue with the bill as enacted was that the tax base for the sales tax was not the same as the tax

Bills: HB2306 , HB2711

Committee: House Transportation

Keywords: transportation budget, capital budget, operating budget, appropriations, Washington State Department of Transportation, WSDOT, Washington State Patrol, Department of Licensing, ferry funding, state ferries, highway maintenance, road preservation, bridge replacement, tolling, express toll lanes, traffic safety, speed cameras, ignition interlock, transit grants, public transit

Transcript Highlights:

• There are no increases to sales tax, property tax, or B&O tax.
• tax.
• tax code.
• tax.
• tax code.

Summary: Senate budget writers, led by Sen. June Robinson, rolled out the Senate operating budget and described it as a difficult supplemental budget shaped by flat revenue growth, rising maintenance costs, and uncertainty from federal actions, including H.R. 1 and tariffs. They said the proposal aims to preserve core services such as K-12 education, health care, food assistance, long-term care, housing stability, and child care while mitigating federal cuts, and they emphasized that it does not include broad-based tax increases like sales, property, or B&O tax hikes. A major focus of the discussion was how to pay for the Working Families Tax Credit and how to reduce the budget gap. Robinson said the Senate proposal uses about $750 million from the rainy day fund because additional cuts would be too severe, and she noted the statute allows that use in a slow-growth economy. Senators also discussed the Climate Commitment Act as a possible funding source for the tax credit, but said they would negotiate with the House on that issue. On child care, they said the Senate avoided the governor’s approach of capping Working Connections Child Care enrollment and creating a waitlist, instead relying more on attendance-based payment changes to reduce costs while trying to avoid destabilizing the provider network. The senators also responded to criticism from educators and Republicans. They acknowledged concerns from the Washington Education Association that schools and special education remain underfunded, but argued the state has made major progress and that Washington’s tax structure limits school funding growth because of the 1% property tax cap. They said a future “millionaires tax” could help stabilize revenue and support education and other services. In response to Republican claims of a “spending addiction,” Robinson said critics should identify specific cuts they would support, and noted Republicans had offered little support for prior budget-cutting measures.

Transcript Highlights:

• It also puts in some requirements for the Tax Commission to tell us the approximate amount of sales tax
• So it was often presented as just a sales tax exemption on that internal equipment.
• So it was often presented as just a sales tax exemption on that internal equipment.
• And many states have a limit on how long that sales tax exemption lasts for.
• This is a tax incentive bill.

Committee: House Revenue and Taxation

Transcript Highlights:

• , and then the property tax appraiser or the tax appraiser can come out and reassess it.
• tax collector.
• fund tax revenue.
• This is not a tax cut bill.
• Let's look at our tax record for a second. We have non-ad valorem taxes. We have ad valorem taxes.

Transcript Highlights:

• So the only people who can raise property taxes or levy a property tax at all are local taxing entities
• taxes, right?
• Not levy property taxes.
• taxes.
• no taxes.

Bills: SB4 , SB23 , SB3 , SJR2 , SJR85 , SB34 , SB60 , SB75 , SB706 , SB1814 , SB1220 , SB523 , SB565 , SB1253 , SB840 , SB764 , SB2383 , SB2155 , SB1535 , SB1405 , SB1423 , SB1566 , SB1804 , SB1728 , SB1816 , SB1952 , SB1948 , SB2037 , SB2068 , SB1455 , SB213 , SB243 , SB627 , SB646 , SB670 , SB896 , SB917 , SB1184 , SB971 , SB1255 , SB1261 , SB1283 , SB1358 , SB991 , SB1733 , SB21 , SB231 , SB739 , SB1252 , SB1371 , SB664 , SB40 , SB9 , SJR1 , SB687 , SB1332 , SB458 , SB482 , SB927 , SB984 , SB651 , SB1620 , SB2124 , SB2448 , SB841 , SB843 , SB402 , SB2662 , SB2053 , SB2332 , SB2112 , SB745 , SB1247 , SB1789 , SB27 , SB207 , SB2938 , SB1901 , SB1227 , SB1248 , SB912 , SB1321 , SB2143 , SB2145 , SB1497 , SB1239 , SB2180 , SB1388 , SB1662 , SB1951 , SB1537 , SB493 , SB378 , SB1020 , SB1018 , SB992 , SB958 , SB920 , SB1350 , SB1762 , SB552 , HCR109 , SB2185 , SB4 , SB23 , SB3 , SJR2 , SJR85 , SB34 , SB60 , SB75 , SB706 , SB1814 , SB1220 , SB523 , SB565 , SB1253 , SB840 , SB764 , SB2383 , SB2155 , SB1535 , SB1405 , SB1423 , SB1566 , SB1804 , SB1728 , SB1816 , SB1952 , SB1948 , SB2037 , SB2068 , SB1455 , SB213 , SB243 , SB627 , SB646 , SB670 , SB896 , SB917 , SB1184 , SB971 , SB1255 , SB1261 , SB1283 , SB1358 , SB991 , SB1733 , SB21 , SB231 , SB739 , SB1252 , SB1371 , HB2970 , HB 109 , SB2308

Transcript Highlights:

• That is what is reported to the tax department on actual tax returns filed.
• from that sales tax number.
• So we're going to the 125 agenda item, tax updates, and we have our tax commissioner here.
• Do they ever give you credit for the property tax rebate that we've, a property tax credit that we've
• income tax.

Committee: Joint Government Finance Committee

Summary: The Government Finance Committee met with new leadership and approved the December 11 minutes. The committee first received an update from the Office of Management and Budget on the state general fund and major special funds. OMB reported revenues were tracking very close to forecast, with an estimated ending general fund balance of about $397 million, higher than previously expected. Staff also reviewed balances in the budget stabilization fund, legacy fund, foundation aid stabilization fund, social services fund, and strategic investment and improvements fund, along with oil tax collections and the current revenue picture. Legislative Council staff then summarized the special session budget changes and noted the updated beginning balance increased the projected ending balance for the next biennium. The Tax Department presented taxable sales and purchases data by county and industry, showing overall sales tax activity remained strong, with retail trade the largest sector and several counties posting notable gains. Commissioner Kraschis then reviewed federal tax changes under the One Big Beautiful Bill Act and estimated their impact on North Dakota income tax collections, explaining that the figures were compared to the 2025 baseline and would be incorporated into future forecasts. Members asked about the overtime and tip exclusions, the senior standard deduction, and the primary residence property tax credit application count, which was running ahead of last year at more than 154,000 applications. The committee also heard from the Department of Transportation on fee schedules, with members focusing on driver’s license fees and the fact that current fees cover only about half of program costs, meaning the highway fund subsidizes the remainder. DOT also reported on specialty plate activity, including nearly 3,900 blackout plates issued, and noted increased state fleet usage. The Information Technology Department explained its internal service fund rate-setting process and discussed possible billing simplification, including annual billing and improved invoice detail. OMB also provided data on leased office space in the Bismarck-Mandan area and state workforce counts, and Legislative Council updated the committee on legislative branch space planning. Finally, subcommittee reports noted continued work on fixed-route transit funding and regional jail capacity, including Burleigh-Morton’s new DOCR housing wing and ongoing overcrowding in state correctional facilities. No formal votes beyond the minutes approval were taken, and the meeting adjourned with the next meeting set for June 25.

Transcript Highlights:

• Most of our taxes are generated in one of three ways through either sales tax or through income tax or
• We hear the phrase tax shifts, and a tax shift is where we take taxes and maybe give a tax break or have
• somebody else pay the tax.
• Give a tax break or have somebody else pay the tax.
• It was the tax conformity bill.

Committee: House Revenue and Taxation

Transcript Highlights:

• I'll start with just a quick reminder of how tax increment financing affects property taxes.
• </c> property taxes. property taxes.
• </c> the tax base. the tax base.
• </c> property tax levies. property tax levies.
• </c> property tax payers. property tax payers.

Committee: Senate Taxes

Transcript Highlights:

• relief or income tax relief.
• relief or income tax relief.
• </c> property tax relief or um or income tax property tax relief or um or income tax relief<00:03:50.480
• <c> and</c><00:04:40.199><c> tax</c> of ontime tax reductions refunds and tax of ontime tax reductions
• tax liability.

Transcript Highlights:

• is no mechanism for remote retailers to pay that tax.
• OTP tax, the other tobacco products tax, because right now there's not a mechanism for it to happen.
• The tax is collected at the wholesale point.
• There was less standardization in tobacco tax statutes across the country than there is in sales tax
• So how many are we picking up with this excise tax?

Committee: Senate Revenue and Economic Development

Transcript Highlights:

• </c> specifically affect the taxes specifically affect the taxes jurisdiction<00:04:22.160><c> in</c>
• </c> seeing property tax uh implications. seeing property tax uh implications.
• </c><01:28:06.880><c> Tax</c><01:28:07.120><c> and</c> tax increase is in this bill?
• Tax and tax increase is in this bill? Tax and fees. fees. fees.
• . tax. tax.

Committee: Senate Taxes

Transcript Highlights:

• You assess taxes; you levy a tax, but the majority of your income comes not from that tax. ...the operationally
• sales tax.
• Unrealized capital gain tax is our property taxes.
• We're not raising our tax rate; we deliberately keep our tax rate down.
• I look at mine, and you know, my biggest tax is the school tax, not the city tax.

Bills: HB26 , HB73 , SB 14 , HB46

Committee: House Intergovernmental Affairs

Transcript Highlights:

• on tips and no tax on overtime.
• and electric vehicle tax credits.
• For personal incorporation taxes, largely the bill extends provisions of the Tax Cuts and Jobs Act that
• It waives the uniform tax requirement for the Medicaid provider tax.
• California must close corporate tax loopholes and end inequitable tax breaks.

Transcript Highlights:

• , as well as the sub-district's 2% sales tax and 2% hotel occupancy tax.
• The request is for the full sales tax, at least the sales tax that is available for this project.
• The other request is for the general fund tax, the state's general fund tax, currently 1%.
• The local tax, well, the local taxes are also... ...full amount? Correct. State and local?
• It's just the authority's taxes and the economic development district taxes, but yes.

Summary: The committee first received a fiscal status statement and five-year baseline budget update from the Office of Planning and Budget. Members were told there were no changes to the baseline, but several current-year items now require appropriations, including Hurricane Katrina closeout costs under GOSEP, projected Department of Corrections shortfalls for offender medical care and overtime, and a reduction in the minimum foundation program tied to February 1 student counts. After questions about how the five-year percentages and inflation assumptions were calculated, the committee adopted the fiscal status statement. The committee then approved several Facility Planning and Control items, including adding eight higher education deferred maintenance projects to the approved list under Act 751, a $412,993 change order for LSU’s Jesse Coates Building project, a report of four other change orders for informational purposes, and combining two Hornbeck water projects into a single expanded water plant and distribution project. It also approved a two-year extension of the University of Louisiana at Lafayette’s Banner ERP consulting agreement and approved Water Sector Commission recommendations for an additional $5.5 million for the Tencel Water District Association, which included a $100,000 local commitment. A major portion of the meeting focused on a proposed tax increment financing package for a 1,000-room headquarters hotel adjacent to the New Orleans Convention Center. Witnesses described the project as a $550 million private investment supported by state and local tax dedications, with projected benefits including more convention business and improved competitiveness. Members raised concerns about the 45-year term, the use of a 1% state tax dedication, possible cannibalization of existing hotel revenue, and the return on the public incentive. After extensive questioning, the committee deferred the proposal to the next month for further review and requested additional projections. Finally, the committee reviewed contract extensions for Louisiana Economic Development’s marketing vendors and a Department of Education amendment for the Odyssey platform used in the Louisiana Gator program. The education officials explained the contract is based on a per-student amount of $143.50 and that the current amendment is needed to avoid a lapse when the existing term ends June 30. Members discussed whether an RFP should be started for future years to seek a better price, and the department said it would be able to provide academic outcome data after the current testing cycle. The meeting then adjourned.