Transcript Highlights:

• </c> your testimony um we also have tax your testimony um we also have tax Foundation<00:15:08.720><c
• </c> revenue which will be the income tax revenue which will be the income tax check<00:15:45.160><c>
• </c> what we need to do um to of tax what we need to do um to of tax mechanisms<00:19:57.039><c> and<
• We will also be adding a definition to define the word 'concerts,' and then finally we are adding a defective
• </c><00:25:46.640><c> a</c> Arts events um we will also be adding a Arts events um we will also be adding

Committee: House Culture & Arts

Summary: The Committee on Culture and the Arts heard testimony on HB 547 HD1, which would create a spay-neuter special fund to reduce pet overpopulation and support spay/neuter services, funded in part through a tax return check-off and other sources. The Department of Taxation said it could implement the check-off; the Attorney General and Budget and Finance raised drafting and placement concerns about which department should house the fund; and the Hawaii Humane Society strongly supported the bill, emphasizing statewide need and the importance of distributing funds to areas of greatest need, including neighbor islands. The Tax Foundation opposed the measure on special-fund grounds, arguing there was no sufficient nexus between the bill’s purpose and the proposed revenue source. The committee later recommended HB 547 HD1 with technical amendments and sent it to Finance, with members voting aye and no objections noted. The committee also heard HB 925 HD1, relating to arts funding, which would impose a 1% fee on ticket sales from concerts at state venues and direct the proceeds to a dedicated arts fund. The State Foundation on Culture and the Arts supported the measure, while the Attorney General suggested defining “concerts” for clarity and Budget and Finance was available with comments. In discussion, the committee chair asked about how other states fund arts programs, and Director Ewald said many states use dedicated funding sources such as concert fees, bond funding, cultural trusts, and hotel lodging taxes. The committee recommended HB 925 HD1 with amendments, including a preamble, a new Performing Arts special fund, a definition of “concerts,” and a defective date, and the recommendation was adopted. Finally, the committee considered HB 1378, also related to the State Foundation on Culture and the Arts. Based on the Attorney General’s testimony, the committee proposed deleting a section of the bill, creating a Performing Arts special fund, specifying revenue sources such as legislative appropriations, foundation charges, grants, gifts, and interest, and using the fund for coordination, planning, promotion, marketing, and execution of performing arts events. The amendments also added a definition of Performing Arts, granting standards, and a defective date, while blanking out the appropriation amount for the committee report. The committee voted to adopt the recommendation on HB 1378 with amendments, and the meeting adjourned.

Transcript Highlights:

• The sales tax is computed by adding the 6.5% state sales tax rate with whatever the local sales tax rate
• The sales tax is computed by adding the 6.5% state sales tax rate with whatever the local sales tax rate
• The sales tax is computed by adding the 6.5% state sales tax rate with whatever the local sales tax rate
• And Maryland does have a digital ad sales tax as well, which I know is controversial in and of itself
• And Maryland does have a digital ad sales tax as well, so which I know that's controversial in and of

Summary: The House Finance Committee held a work session that began with welcoming new member Rep. Janice Zahn, who introduced herself as representing the 41st Legislative District. The Department of Revenue then gave an update on the Antio-related legislation following the Washington Supreme Court decision and the 2025 session changes. DOR explained its voluntary disclosure program and the new expanded voluntary disclosure agreement for taxpayers with unreported investment income, including broader eligibility and interest/penalty relief, but said utilization has been minimal so far because additional implementation questions remain unresolved. The committee next received the annual update on the Working Families Tax Credit. DOR reported record participation in 2025, with about $205 million refunded through October and a major increase in applications after TurboTax added the credit to its filing software. Officials said most dollars went to households with children, outreach efforts remained important, and community partners and state agencies helped increase uptake. Members focused heavily on fraud concerns, especially tax preparers allegedly filing claims without applicants’ knowledge or diverting refunds; DOR said it is using fraud detection tools, training preparers, and trying to make applicants whole, but current law does not provide direct penalties against preparers. The final portion covered implementation of engrossed substitute Senate Bill 5814, which expanded sales tax to certain services. DOR described the new tax framework, its guidance process, and the large volume of ruling requests and outreach since the law took effect October 1. Committee members asked about fiscal assumptions, the scope of taxable services, and whether the department had revised its implementation estimates; DOR said the fiscal note assumed broad application absent explicit exemptions and that no expenditure revision had been made. In stakeholder testimony, Expedia and T-Mobile argued the law creates complexity and competitive disadvantages for Washington businesses, while a construction training provider said the tax raises tuition for workers seeking required certifications. School and nonprofit representatives said the tax will increase costs for special education services, arts programming, and other public-facing activities, and urged exemptions or further legislative fixes. The chair closed by noting the committee would revisit 5814 in the next session and then adjourned the meeting.

Transcript Highlights:

• premium tax, insurance premium tax, but formerly excise license tax.
• Like I say, if I had taken my, if I let my sales tax equation just put a number down, I'd be adding substantially
• tax.
• I have increases in the major tax revenues, the individual income tax and the general sales tax.
• I have increases in the major tax revenues, the individual income tax and the general sales tax.

Summary: The Revenue Estimating Conference met with four members present and first approved the prior meeting minutes and recognized the FYI end-of-balance of $577,077,871 as nonrecurring revenue. The main business was revising the state revenue forecast for FY 2026, FY 2027, and the long-range outlook. The Division of Administration recommended a $113 million reduction to the FY 2026 State General Fund forecast and a $104 million reduction for FY 2027, citing weaker-than-expected individual income tax collections, softer corporate income tax receipts, and some weakness in general sales tax, partly offset by stronger motor vehicle sales tax and higher mineral-related revenues tied to oil prices. The Legislative Fiscal Office presented a somewhat different but broadly similar forecast, with modest net increases to the general fund bottom line in the current year and next year, emphasizing caution on income and corporate taxes and more optimism on sales, severance, royalties, and some other revenue streams. A substantial portion of the discussion focused on the causes of the income tax shortfall, especially withholding and refund patterns after tax changes that lowered rates. Department of Revenue officials explained that withholding tables had been set with a cushion that may be producing larger refunds, and said changing the tables could quickly reduce overwithholding, though the effect would take time to show up. Members also discussed corporate collections, the lingering effects of the franchise tax repeal, the role of settlements and audits, and the extent to which collections are voluntary versus enforcement-driven. The Department of Revenue said corporate collections still had key filing and estimated-payment milestones ahead in May and June, and that refund and audit activity related to the former franchise tax would continue for some time. The conference then adopted the Division of Administration’s FY 2026 forecast, the FY 2027 recurring forecast, and the long-range forecast, along with the proposed inflation rates for the Millennium Trust and parish severance allocation. Members also adopted the incentive expenditure forecast, noting that the reported amount is only the REC-reported portion and that larger tax exemption amounts come off the top before appropriations. The Treasurer reported a General Fund cash balance of about $404.1 million as of May 5, 2026, and an interfund borrowing base of about $9.18 billion, saying cash levels were similar on average to the prior year. The meeting ended with a note that another REC meeting might be needed depending on the May 16 election, and the conference adjourned without objection.

Transcript Highlights:

• </c> officers to be added to the definition. officers to be added to the definition.
• , and then privilege taxes, otherwise referred to as occupational taxes.
• </c><01:04:54.079><c> otherwise</c> taxes and then privilege taxes otherwise taxes and then privilege
• or net profits tax.
• We're talking about potentially the payroll tax or gross earnings tax.

Summary: The committee first heard an update from representatives of the Kentucky County Clerk’s Association on the transition to electronic recording and land records modernization. They reviewed the 2021 task force work, the legislation and budget funding that followed, and the requirements for county clerks to provide online search portals and complete 30-year property record searches, with a 60-year standard expected next summer. Speakers said most counties are still working through scanning and verification, with only a small number fully complete, and emphasized that verification of records is the main bottleneck because it requires staff time and careful matching of indexes to deeds. They also noted limited vendor availability, differences among counties in what records are already digitized, and that the association and land title attorneys are now working more closely on future “continuous improvement” legislation. The clerks also raised related issues, including concerns about deed fraud as more records become searchable online. They said some counties already offer notification services that alert property owners when a document is recorded, which can help owners respond quickly to suspicious filings. They also discussed the filing document storage fee and KDLA digitization grants, saying the funding structure has generally worked but that two grant cycles have been missed. Another topic was whether, once records are fully digitized and searchable, some permanent records should remain publicly accessible or be moved to a safer archive. In response to committee questions, the witnesses said the remaining delays are less about money than staffing shortages and the need for more manpower to complete verification, and they said they would follow up on the balance in the KDLA fund and other details. The committee then received a presentation from an Area Development District representative, who described the districts as regional, nonpartisan service organizations that help cities and counties pool resources, provide technical assistance, and leverage public and private partnerships. He highlighted examples of regional cooperation, including veterans-directed care and other shared programs, and argued that the districts create efficiencies and economies of scale for local governments and the state. No votes or formal actions were taken during the portion of the meeting provided.

Transcript Highlights:

• He added that you cannot use government taxing authority, power, and bonding capacity in the way Tolleson
• We do permit ADE to charge fees.
• School property is not taxed.
• their library taxes, and lots of other taxing jurisdictions.
• Those district taxes, their library taxes, and lots of other taxing jurisdictions should be getting their

Committees: House Education , House House Education Committee of Reference

Transcript Highlights:

• The estate tax reform last year eliminated the tax for small estates.
• on damaged homes and refunding sales taxes on rebuilding costs to help families recover without adding
• It's adding, it looks like, adding a definition for emergency housing.
• It's adding, it looks like, adding a definition for emergency housing.
• It's adding, it looks like, adding a definition for emergency housing.

Summary: House Finance met on February 26 and heard several tax and housing-related bills. Substitute Senate Bill 6343 would extend the deadline to apply for a property tax exemption for improvements to single-family homes damaged by natural disasters, with sponsors citing recent flooding and the need to help displaced homeowners in multiple counties. Local officials from Kent and Algona testified in support, describing flood damage and ongoing recovery needs. The bill was heard but no vote was taken. Senate Bill 6347 would roll back the higher estate tax rates enacted in 2025, while leaving the higher exemption amount in place. Committee staff said the bill would reduce revenue to the Education Legacy Trust account by about $44.8 million starting in fiscal year 2027 and about $389.9 million over the 2027-29 biennium. Supporters argued the higher rates could harm family businesses and encourage wealthy residents to leave; opponents said the bill would mainly benefit very large estates and would worsen budget pressures by reducing funds for education and child care. Public testimony was mixed, and the bill was heard without action. The committee also heard Senate Bill 6244, which would extend a hazardous substance tax exemption for agricultural crop protection products stored in Washington for out-of-state sale until 2038. The sponsor and a logistics witness said the exemption helps farmers get products faster, supports regional distribution, and improves competitiveness; staff said the revenue impact would be small. Finally, Senate Bill 6114 would define “fixture” and “affixed” for real estate excise tax purposes to make tax treatment of attached property clearer, and Senate Bill 6027 would broaden allowable uses of several local affordable housing funding sources, including rehabilitation and operations of existing housing, rental assistance in some counties, and expanded uses for Affordable Housing for All grants. Both of those bills drew support from state and local housing officials and advocates, and the committee adjourned after the hearings with no recorded votes.

Transcript Highlights:

• We also added...
• We also added...
• What it means is that that $2,000 isn't added back into what the calculation... added back into what
• of Taxes...
• We also added a small...

Transcript Highlights:

• </c> signed up to testify is the tax signed up to testify is the tax Foundation<00:01:50.799><c> of</
• </c> about the same as they do for gas tax about the same as they do for gas tax now<00:07:51.360><c>
• claim another tax credit or a tax credit or deduction under this section if they claim this credit.
• </c> don't have a Sunset date so we added don't have a Sunset date so we added some<00:10:07.839><c>
• </c> of double benefit situation we added of double benefit situation we added some<00:10:17.440><c>

Summary: The joint committees heard testimony on several measures, beginning with SB 1480 on transportation and road usage charging. Supporters included the Department of Transportation, the Hawaii State Energy Office, county representatives, and the Tax Foundation, while an automotive industry witness opposed the bill, arguing it would be unfair to rural drivers and those with longer commutes. Committee discussion focused on equity, rural impacts, and whether the measure should be tied to future rail funding. The committees ultimately recommended SB 1480 pass with amendments, including broadening allowable uses of funds, clarifying language on infrastructure and safety, addressing motor scooters, and striking a proposed new subaccount; the recommendation was adopted by both committees, with one no vote in TCA. For SB 970 on taxation, the Tax Foundation said the employer transit tax credit would be more efficient as a direct subsidy program, and the Department of Taxation recommended several changes, including a sunset date of December 31, 2030, anti-double-benefit language, deletion of certain reporting requirements, and an effective date of December 31, 2025. The department estimated the bill would reduce revenues by about $11.6 million over the four-year period it would be in effect. The committees moved SB 970 forward with amendments to include bike share in the credit and add a defective date, leaving the department’s suggested changes for later consideration; the recommendation was adopted. The committees also advanced SB 1008 on parking and SB 1088 on electric vehicle charging infrastructure without amendments. DCAB strongly supported SB 1008, saying it would help counties enforce accessible parking design requirements, and noted a related bill without the EV portion. SB 1088 drew broad support from the Public Utilities Commission, State Energy Office, county and advocacy groups, and individuals; one question raised whether the bill should sunset, but the response was that Hawaii still lacks sufficient EV charging infrastructure and the measure expands eligibility for affordable housing. Both bills were recommended to pass unamended and the recommendations were adopted. The Transportation and Culture and Arts committee then heard SB 1011 on the Hawaii Leadership Awards Program, with testimony in strong support from individuals and the State Archivist, who suggested preserving award recipients’ archives, photos, oral histories, and clippings. The committee also heard SB 441 on the Hawaii Symphony Orchestra, with support from the Democratic Party of Hawaiʻi, the Hawaii Theatre Center, musicians, and others emphasizing cultural value, workforce stability, and statewide access to the arts. The transcript then moved to SB 1581 on the Hawaii Japan Pacific Peace Monument and SB 1577 relating to the State Foundation on the Arts; on SB 1577, the Attorney General warned that using the Works of Special Art Fund for operating purposes could jeopardize the tax-exempt status of related bonds and recommended deleting section five, while also pointing to the Performing Arts Special Fund as an alternative.

Transcript Highlights:

• tax abatements.
• The port collects property taxes. The people associated have paid little in property taxes.
• Only two that I know of, but they began using ADS-B data to calculate and collect taxes and other charges
• Only two that I know of, but they began using ADS-B data to calculate and collect taxes and other charges
• He added that the added Orleans member should come from the impacted district.

Summary: The committee first heard and favorably reported House Bill 1175, which updates aeronautics-related definitions to make Louisiana more attractive to the aviation industry. It then approved House Bill 655, giving DOTD clearer authority to contract for operation and maintenance of state ferry systems on a cost-plus basis, with testimony focused on flexibility for the Cameron Ferry and other state-run ferries. House Bill 1037, which reorganizes certain DOTD operations by shifting duties to a chief operating officer and extending work on a unified permitting platform, was also reported favorably, as was House Bill 1174, which recreates the Department of Transportation and Development on a revised cycle. House Bill 714 was voluntarily deferred. The committee next took up several port-related measures. House Bill 871, which would have added two St. Tammany appointees to the Port of New Orleans board, was voluntarily deferred after the author said the timing was premature given ongoing work on the LIT project and regional trade zone issues. House Bill 345, expanding the Rail Infrastructure Improvement Program to include rail infrastructure at ports, was reported favorably. House Bill 713, which would cap the Caddo-Bossier Port executive director’s compensation at the statewide average of the top ten port directors, drew extensive testimony for and against; supporters argued the salary was excessive and the port needed accountability, while opponents said ports are different from one another, the local appointing authorities already oversee the board, and the bill could hurt recruitment. The committee voted 12-1 to involuntarily defer HB 713. House Bill 667, which would change the Caddo-Bossier Port Commission from appointed to elected members, also drew strong opposition over cost, voter confusion, and loss of local appointing authority, and it too was involuntarily deferred by a 12-1 vote. The committee then favorably reported House Bill 743, creating the Harry P. Williams Memorial Airport District in St. Mary Parish, after testimony that the airport should be managed as a dedicated economic development asset. House Bill 836, which would reconfirm members of the Southeast Louisiana Flood Protection Authority East, was amended to move the reconfirmation date from August 1, 2026, to December 1, 2026, to avoid disrupting hurricane-season operations, and was reported favorably by substitute. Finally, House Bill 730, concerning the use of ADS-B aircraft tracking data, was discussed with an amendment limiting the bill’s application to smaller aircraft; the measure was presented as a privacy and safety bill to prevent assessors or others from using ADS-B data to impose fees or taxes on aircraft owners.

Transcript Highlights:

• Tom Yamamaica from Tax members.
• I have the tax making? Yeah, go ahead. I have the tax department. department. department.
• Um, when you do the tax credits, I mean, tax credits is actually not income, right?
• I mean, it depends on what the taxes, how much taxes they pay, what the credits might be.
• ><c> they</c> what the taxes what how much taxes they what the taxes what how much taxes they pay<00:

Summary: The committee heard testimony and then took up House Bill 1369, which would repeal several tax credits and exemptions, including the renewable fuels production tax credit. Testimony was overwhelmingly opposed: Hawaii Gas, the Hawaii Renewable Fuels Coalition, and the Tax Foundation all raised concerns, with opponents arguing the renewable fuels credit has supported major local investment, cleaner fuel production, and energy resilience, while Hawaii Gas warned repeal would raise costs for customers. The Department of Taxation said it did not take a position but provided revenue estimates, saying the bill would increase revenues by about $33.8 million in FY 2026 and $121.7 million in FY 2027; DBEDT said it would follow up on broader economic impacts. The chair proposed a series of amendments that removed some repeals, added five-year sunsets to certain exemptions, narrowed or conditioned others, and tied the renewable fuels exemption to a dollar-for-dollar match for renewable fuel production certified by the state energy officer. The committee recommended passage with amendments, and the motion was adopted with multiple members voting with reservations. The committee then moved through a series of other measures. HB 159, HB 244, HB 280, HB 316, HB 716, HB 1298, and HB 1295 were recommended for passage, with HB 1295 amended to change a date to 2050. HB 455 was amended to remove the Hawaii Startup Business Loan Program language and instead fund DBEDT contracting for startup financing and support, excluding businesses already eligible for the community-based economic development loan program. HB 504 was amended to add non-recurring appropriations for the Hawaii Tourism Authority, conditioned on formal commitments to purchase local products under the HRS 27-8 timeline; members discussed the cruise passenger tax and where the revenue would go, and the bill was passed with amendments. HB 606 was amended to recognize DHHL authority over mercantile projects licenses, remove some reporting requirements, and replace the appropriation with $25 million for mercantile projects and $25 million for repair and maintenance. HB 1378 was amended to allow the foundation to enter public-private partnerships, adjust appropriation language, and cap a proposed limit at $15 million, with the committee noting the changes addressed concerns raised in testimony from BNF and the attorney general. HB 974 was deferred indefinitely because the House had already passed SB 1501. Finally, HB 1007 was amended to rename the transit-oriented development infrastructure district program as the transit-oriented community improvement program, consolidate the boards into one, expand board membership, add conflict-of-interest provisions, and allow legislative designation of areas; after discussion about HCDA’s role and the stadium district, the measure was adopted with one reservation.

Transcript Highlights:

• One of these was added in FY26. Both of them were actually were added.
• , use tax audit.
• and use tax.
• Postmarks mean a lot to us, not only on sales tax, but income tax.
• , fees, and fuel tax.

Committee: House Budget

Transcript Highlights:

• section 42-11-134 relating to property tax exemptions.
• This bill amended our tax laws, and our tax laws need much further amending, and that's why I tried to
• tax exemption for data centers.
• Have you added? I don't know.
• school tax credits.

Transcript Highlights:

• A tax credit is not the same as cutting taxes.
• I oppose tax credits... ...and lower taxes.
• But the biggest one we list is a tax credit. It's not even a tax credit.
• That's not a tax credit.
• What is a $50 million tax cut? But I would like to give. million tax cut.

Summary: The House recognized its drafters and research staff, then moved through committee reports and several conference committee reports and final passage motions. Senate Joint Resolution 87 was adopted and finally passed after debate over a provision affecting the City of St. Louis sheriff; supporters said the final version restored the original format with a minor wording change, while opponents argued it removed local voter control. The resolution passed 95-46 on both the conference report and final passage votes. Members then adopted and finally passed Senate Bill 973, a measure combining a wholesaler provision and a land bank/real estate transparency provision, with supporters describing it as consumer protection and cleanup language. Senate Bill 1421, a public safety package, was also advanced after a motion to exceed the conference differences; debate focused on clean slate provisions, masked intimidation penalties, prosecuting attorney salaries, fentanyl language, good time credit, Brianna’s Law, and a St. Louis liability provision. The conference report passed 116-18, final passage 110-25, and the emergency clause for the drone-related portion passed 136-5. The House also adopted and finally passed Senate Bills 835 and 1111, a broad package including insurance claim assignment protections, court automation updates, treatment court administration, a circuit judgeship codification, a St. Louis civil case surcharge, and anti-SLAPP protections. Senate Bill 1408, which authorizes MoDOT and the Highway Commission to consider raising rural interstate speed limits from 70 to 75 mph, was receded to the Senate version and finally passed 93-46. Senate Bill 913, extending multiple agricultural tax credits through 2033 and adding a short-line railroad credit, drew extensive debate over tax credits, budget priorities, and return on investment before the previous question was ordered and the bill passed 107-30. Finally, Senate Bill 1553 was passed, creating incentives and a grant program tied to critical minerals and pharmaceuticals to reduce reliance on foreign suppliers; supporters framed it as a jobs and national security measure, while one member raised concerns about local revenue impacts before clarifying the bill’s scope. The House then received Senate messages indicating the Senate had passed a House bill, and the session continued.

Transcript Highlights:

• We do permit ADE to charge fees.
• Sometimes it is ADE.
• School property is not taxed.
• shelters for companies that should be paying their county taxes, their flood control district taxes,
• their library taxes, and lots of other taxing jurisdictions.

Committee: House House Education Committee of Reference

Summary: The committee heard and advanced several school-related bills, with much of the discussion focused on governance, transparency, and accountability in school districts. House Bill 2318 would impose term limits on school district governing board members in districts with at least 250 students, while allowing county superintendents to appoint a term-limited member to fill a vacancy. Supporters argued it would bring fresh ideas and prevent entrenched leadership; opponents said voters should decide. The bill received a due pass recommendation after a divided roll call. House Bill 2312 would allow certain patriotic youth groups to address students during school hours and require equal access for those groups in school forums. The sponsor said it was intended to promote programs such as FFA, Scouts, and similar organizations. Some members objected that it would take instructional time and was not truly permissive if access was granted to one group, and the bill nonetheless received a due pass recommendation. House Bill 2320 would require school districts to hire a registered independent municipal advisor before calling a bond election and for each successful bond issue. The sponsor and supporters said this could reduce underwriting fees and save taxpayers money, while some members raised questions about costs if a bond failed and whether the bill should be narrowed; it passed with a due pass recommendation after several members voted present or no. The committee also approved House Bill 2376, which would bar districts from buying or leasing school property while a charter or private school is still operating there, and House Bill 2378, which tightens conflict-of-interest rules for the School Facilities Oversight Board by barring the architect and engineer members from having school-construction business. Both were framed by the sponsor as responses to concerns raised in Tolleson Union-related testimony and reporting. House Bill 2379, as amended, requires school board members to complete biennial training approved by the Auditor General, to be offered by county superintendents or ADE, with counties able to contract with others; supporters called it needed training, while opponents raised concerns about unfunded mandates, inclusion of ASBA, and charter schools. It received a due pass recommendation. Finally, House Bill 2380 would require board and subcommittee meetings to be held in-district, preserve online access to materials, and require public approval of out-of-state travel, with reimbursement if retroactive approval is denied. Rural districts and others raised concerns about flexibility, executive-session confidentiality, and administrative burden, but the bill was discussed with amendments and public access concerns rather than a final recorded action in the excerpt.

Transcript Highlights:

• section 42-11-134 relating to property tax exemptions.
• This bill amended our tax laws, and our tax laws need much further amending.
• tax exemption for data centers.
• Have you added? I don't know.
• school tax credits.

Summary: The Senate met in multiple Committee of the Whole sessions and considered a large number of bills, many related to digital assets and cryptocurrency, including SB 1042, SB 1043, SB 1044, SB 1045, SB 1432, SCR 1003, SCR 1033, and SCR 1028. Members discussed whether the state should accept cryptocurrency for payments, tax or exempt virtual currency, ban central bank digital currency, and support digital assets in retirement systems. Senator Epstein repeatedly argued against the measures and tried to offer amendments targeting data center tax exemptions, but one such amendment was ruled not germane and the ruling was upheld on a division vote. The bills and resolutions in that group generally advanced with do-pass recommendations, with SB 1043 and SB 1044 amended before advancing. The Senate also advanced several bills on family law, public records, scholarship organizations, property conveyances, underground facilities, and environmental and energy issues, including SB 1039, SB 1139, SB 1147, SB 1148, SB 1328, SB 1078, SB 1142, SB 1184, SB 1254, SB 1278, SB 1281, SB 1418, SB 1445, and SB 1566. Some measures drew discussion and amendments: SB 1254 received a clarifying amendment for deeds handled by title and escrow professionals; SB 1278 had a floor amendment withdrawn; SB 1281 was amended by committee and floor changes; SB 1418 prompted questions about small modular reactors and concerns about uranium mining and health impacts; and SB 1566 was amended to address malicious delay enforcement and judicial review. Most of these bills received do-pass recommendations. In the health and human services calendar, the Senate advanced SB 1052, SB 1115, SB 1149, SB 1193, SB 1233, SB 1345, SB 1346, and SB 1631, with SB 1124 retained on the calendar. Debate centered on ACCESS and remote work, administrative deficiency cure periods, anonymous complaints, fee-for-service claims, and DCS-related hearings and investigations. Senator Gonzales opposed several ACCESS-related bills, arguing they lacked appropriations, could disrupt services, or conflicted with federal Medicaid law, while sponsors said the bills addressed agency performance and provider complaints. SB 1115, SB 1149, SB 1193, SB 1233, and SB 1345 were amended before receiving do-pass recommendations, and SB 1345’s sponsor said ACCESS was removed from the bill. The final calendar included regulatory and veterinary-related bills such as SB 1137, SB 1144, SB 1205, and SB 1286. SB 1205, dealing with motor vehicle booting fees, received a floor amendment requiring an appeals process for private parking lots. SB 1286, on veterinary telemedicine and prescriptions, drew the most extended debate, with a committee amendment and a Kavanagh floor amendment restoring a 14-day prescription extension and adding flea and tick treatment; Senator Leach opposed the floor amendment, describing prior stakeholder negotiations and changes in committee support. The transcript ends while that debate is still underway, after several bills have already been reported out with do-pass recommendations.

Transcript Highlights:

• It would raise more than 300 million in revenues by taxing digital ads.
• ads.
• With the large by taxing digital ads.
• We must tax Amazon. We must tax Meta. We must tax big tech, and we must tax all advertising.
• We must tax big tech and must tax Meta.

Summary: The meeting was a press-style discussion in support of House File 4343, which would end Minnesota’s sales tax exemption for digital advertising services and physical advertising space such as billboards. Supporters said the bill would raise more than $300 million in revenue and allow the state sales tax rate to be reduced, while also modernizing the tax code to reflect a digital, service-based economy. Eric Bernstein of We Make Minnesota argued the current sales tax base is outdated, too narrow, and unfairly shifts burden onto Minnesota businesses, workers, and property taxpayers. Representative Lislegard said the bill would help fund schools, health care, infrastructure, child care, and local government, and framed it as a response to structural budget gaps and rising property taxes. She said large corporations are not paying their fair share and that the state should cut exemptions rather than reduce public services. Several speakers from labor, education, health care, and the arts backed the proposal, including a working parent who cited high child care costs, an AFSCME representative from Hennepin County Medical Center who said the revenue is needed to support the safety-net hospital, a musician who said streaming and ad-driven platforms profit from artists’ labor, and an educator who criticized social media companies’ impact on youth. The speakers repeatedly argued that major tech and advertising companies such as Meta, Google, Amazon, Microsoft, TikTok, and Spotify should contribute more to public services, while ordinary Minnesotans already pay too much. Representative White closed by acknowledging the bill faces a difficult path but said supporters would keep fighting for it. No vote or formal committee action was taken in the portion provided, and the event ended with one question from the audience.

Transcript Highlights:

• </c><00:22:23.919><c> was</c> taxed and all of a sudden the tax was taxed and all of a sudden the tax
• to go individually by rooms and meals tax and rent tax.
• </c> added.
• They added two multi-state added.
• Um, which tax? The vape tax.

Summary: The Committee of Conference on HB 1 and HB 2 was called to order, and Legislative Budget Assistant Michael Kaine reviewed the working documents before the committee. He explained the compare report, the detailed change sheet, the HB 1 index, the HB 2 side-by-side, the surplus statement, and a revenue handout, noting that the committee would vote up or down on all detail-change items and that unresolved items on hold would be removed from the final bills. He also identified staff available to answer technical questions and noted that the committee would track the dollar impact of decisions as it proceeded. Members then turned to the revenue outlook, with discussion focused on the gap between the House and Senate budget positions. House members said their budget guidance was based on revenue estimates that were significantly below the governor’s proposal, and they discussed whether additional revenue could close part of the gap. Department of Revenue Administration Commissioner Lindsey Stepp presented updated revenue estimates based on May data, explaining the methodology and the ranges for fiscal years 2025, 2026, and 2027. She said business taxes were the largest source of uncertainty, with estimates reflecting current economic conditions, recent revenue performance, and a range of possible growth rates. Committee members questioned the assumptions behind the business-tax ranges, including why the low and high scenarios were set at 2% and 8% growth. Stepp said the range was based on historical performance and current economic factors such as inflation, tariffs, and business behavior, and she noted that June is a major estimate-payment month for business taxes. Members also discussed recent revenue trends, including the effect of tariffs and the possibility of federal tax policy changes affecting repatriated profits. The commissioner and House members also discussed other revenue sources, including rooms and meals and real estate transfer taxes, with the House side arguing that lower mortgage rates and home prices could increase real estate transfer revenue. No votes were taken in the portion provided, but the committee discussed possible upward adjustments to House revenue assumptions, including increases of roughly $70 million in total based on the updated outlook and additional insurance-related revenue.

Transcript Highlights:

• </c> changes in the deal besides the tax changes in the deal besides the tax maximum<00:09:38.880><c>
• tax</c><00:09:39.120><c> cut.
• Look, we said no tax increases, and so that applies to everything. Is a no-tax bill an option?
• </c> dead set against raising more taxes. dead set against raising more taxes.
• Is no tax bill an option? to everything. Is no tax bill an option?

Transcript Highlights:

• Originally there were three taxes: the cultivation tax on the harvested plant, the excise tax on the
• So fuel taxes are one of the largest tax revenues.
• That tax credit is active as it was under the Inflation Reduction Act for tax year 2024, tax year 2025
• But most of their tax liability, we estimate, is in the fuel taxes and sort of the diesel excise tax
• Subsequent constitutional and statutory changes added on the administration of tax fees and an appellate

Transcript Highlights:

• When it looks at the buckets, how they fill, the first one would be the income tax property tax relief
• , for example, do like 25% of the excise tax. $70 million of the excise tax, for example, do like 25%
• , and I know in that gas tax, they had an EV tax too.
• He added, “Brady, can you look up how much that gas tax bill that the House passed and now was sitting
• gas tax.

Committee: House Appropriations - Government Operations Division

Summary: The House Appropriations Government Operations section met with a full committee present and took up discussion of the Department of Transportation budget and a House funding package. Members described a proposal to simplify DOT funding by eliminating the Prairie Dog bucket, consolidating money into three main buckets/funds, and using DOT expertise to select projects while giving counties, cities, and townships more certainty. They said the plan would also restore 100% of the motor vehicle excise tax to the general fund and use other existing funds, including SIF and the legacy earnings fund, to support DOT and local road distributions. A major part of the discussion focused on how to cover Highway 85 and other road needs. Members and DOT Director Ron Hankey said federal highway formula funding for the next biennium should continue as long as the federal highway bill remains unchanged, but that the six-mile Highway 85 segment is unlikely to receive a federal grant because of benefit-cost issues. The committee discussed bonding for the $155 million set aside for Highway 85, with members noting Garvey bonds as one option but wanting flexibility to use the best available rate. They also discussed a possible five-cent gas tax to support the highway distribution fund; several members raised concerns about the policy and political difficulty, while others argued it was needed because oil revenues are down and the state needs a sustainable funding source. Members repeatedly asked for a clearer visual or flow chart showing how the money would move through the new structure, and the chair and sponsors said staff would prepare a pictorial and amendment language. There was general support for the concept, but some members wanted caucus education before floor action. No formal vote was taken during this discussion, and the chair indicated the committee would move quickly, with amendments to follow and the bill expected to continue in conference committee.