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

Summary: The Assembly Budget Subcommittee on State Administration heard several budget proposals from CDTFA, the Board of Equalization, and the Franchise Tax Board. The first panel focused on cannabis, hemp, flavored tobacco, and related enforcement. CDTFA requested ongoing funding to implement cannabis tax changes, enforce the new intoxicating hemp restrictions and flavored tobacco seizure authority, and continue compliance work. The department said it is targeting illicit product, protecting licensed businesses, and using referrals from the public and lawmakers to focus inspections. The LAO supported some of the proposals but urged the Legislature to treat them as part of a longer-term enforcement strategy and raised concerns about the use of General Fund support for cannabis enforcement. Public testimony on the cannabis item largely supported stronger enforcement and funding for the legal market. The committee also heard CDTFA’s request to reappropriate funds for an upgrade to the CROS tax collection system, which would improve taxpayer services, security, and software maintenance without adding new money. A separate CDTFA proposal would make all delivery network companies, such as DoorDash and Uber Eats, marketplace facilitators for sales tax purposes. CDTFA said the change would reduce confusion for restaurants and improve compliance, while the LAO questioned whether the proposal functioned more like a tax increase because it would also capture service fees. Members raised affordability concerns, but the proposal was framed by the administration as a parity and compliance measure. The subcommittee then considered a governor’s proposal for a sustainable aviation fuel tax credit. Finance argued the credit would help decarbonize aviation and support in-state production, while the LAO recommended rejection, citing cost, uncertainty about environmental benefits, possible diversion of diesel excise tax revenues from transportation programs, and concerns about consistency with voter-approved transportation funding rules. Testimony from airlines, labor unions, airports, and refinery workers strongly supported the credit, emphasizing union jobs, refinery conversions, and emissions reductions, while fuel retailers and some others warned about fiscal risk and higher fuel prices. The chair and some members expressed support for the proposal despite the funding concerns. Finally, the BOE presented an IT modernization project for state-assessed property administration, saying the current system is outdated and manual and that a new system is needed to improve accuracy, cybersecurity, and workflow efficiency, especially with a likely increase in workload from new VoIP assessments. The LAO asked for more justification for the timing, but BOE said the urgency stems from aging systems and growing workload. BOE also requested modest funding to implement SB 293 changes to intergenerational property transfers and wildfire relief guidance, which the LAO did not oppose. The Franchise Tax Board began its presentation on the final phase of its Enterprise Data to Revenue modernization effort, describing the project’s rollout across audit, collections, legal, and filing enforcement workloads and noting it is now in a warranty period.

Transcript Highlights:

• different tax years.
• Our B&O tax code is as regressive as sales tax is to individuals.
• We started with a $2.5 billion beginning fund balance, added $4.3 billion in taxes in this most recent
• Raising taxes didn't solve the problem. There is no tax.
• will be added.

Committee: House Finance

Transcript Highlights:

• It's income-producing; this is not added to those taxes.
• It's income-producing; this is not added to those taxes.
• It's income-producing; this is not added to those taxes.
• It's income-producing; this is not added to those taxes.
• ><c> services</c> adding more and more taxes onto services adding more and more taxes onto services and

Committee: House Taxes

Transcript Highlights:

• Lower taxes on tips. No tax on overtime. No tax on car interest.
• And the... ...on tips, no tax on overtime, no tax on car interest, and the many other tax cuts that have
• We have put up exactly what tax filers... ...exactly what tax filers are now filing.
• Now, I don't know about you, but I've never had that on my tax form, and I love taxes.
• to amend your tax forms.

Transcript Highlights:

• And basically, it is a tax deduction, not a tax credit.
• And basically, it is a tax deduction, not a tax credit.
• Nebraska's gas tax is 29 cents. Their sales tax is 5.5%. Their gas tax is 29 cents.
• Their sales tax is 5.5%. Miles, 9,937. Iowa, gas tax, 30 cents. Sales tax, 6%.
• Sales tax, 7%, 14,000 miles. Arkansas gas tax is 25 cents. Sales tax 6.5 cents.

Summary: The House opened with prayer, approved the previous day’s journal unanimously, and then adopted a motion suspending House Rule 98 to allow members to wear hats on the floor. Members also introduced several special guests, including the Eugene High School Class 2 basketball champions, family members, scholarship recipients, and other visitors. One member used a lengthy personal privilege speech to criticize a recent U.S. Supreme Court voting-rights decision and warn about threats to democracy and minority voting power. The chamber then took up committee reports and several bills. It approved a motion to go to conference on the property-tax omnibus measure tied to Senate Bills 1066 and 1088. House Bill 3329, repealing expired tax credits, passed 142-0. House Bill 3405, clarifying the SALT deduction and improving tax-credit accounting, also passed 138-0. House Committee Substitute for House Bill 2426, a parental-rights bill that also drew criticism over a school financial-ledger requirement and possible burdens on schools and student safety, failed on third reading 70-60. The House next passed House Committee Substitute for Senate Bill 1233, a professional-licensing bill involving CPA exam access and other occupational licensing changes, by 129-6 after adopting an amendment removing compact language and rejecting a nursing-home physicals amendment. It then passed House Committee Substitute for Senate Bill 1408, which raises the maximum rural interstate speed limit to 75 mph and, through multiple amendments, also carried a mix of transportation-related provisions including vehicle inspections, hands-free enforcement, motorcycle lighting, driver education, and specialty license plates for women’s professional sports; the final vote was 82-53. The Speaker also appointed a conference committee for Senate Bill 1066. The final item mentioned was Senate Substitute No. 2 for Senate Bill 863, described as an interscholastic athletic oversight/appeals bill, but the transcript cuts off before its final action is shown.

Transcript Highlights:

• It also added two other provisions.
• The conference committee report dealt with things like property tax, local income tax, public notice,
• municipal advisors, steel mills, things like property tax, local income tax, public notice, municipal
• And in some cases, we have owners who are qualified tax exempt, yet they pay a tax on their use.
• tax-exempt use.

Transcript Highlights:

• $5 million added in FY26 and $1.7 million added in FY27.
• Income tax revenue.
• tax and corporate income tax.
• You know, there are tax credits, and there are tax credits. I'm all for the child tax credit.
• Child care and adding it to their employee benefits. There's the dependent tax care assistance.

Transcript Highlights:

• committee</c> property tax and changes tax committee property tax and changes tax committee makes<00:
• to the tax base or growth in tax makes to the tax base or growth in tax base<00:01:55.560><c> all</c
• </c> the property tax system made by the tax the property tax system made by the tax committee<00:02:
• Here's a list of those property tax class rates for that adjusted net tax capacity tax base.
• tax taxes and and discussion of property tax taxes and and part<00:14:31.000><c> of</c><00:14:31.240

Committee: House Education Finance

Transcript Highlights:

• there paying property taxes to impose any tax.
• So, a part of this tax package again will include Section one, Earned Income Tax Credit.
• Could you tell us what the tax expenditure amount is for the foster child tax credit, Mr.
• tax policy.
• exemptions or tax, um.

Transcript Highlights:

• Two, distribute that income tax and provide limited tax relief in 2029 and 2030.
• Recent Changes to Sales and Use Taxes and Business and Occupation Taxes.
• rather than doing a genuine tax swap to reduce regressive taxes like property taxes and the CCA tax.
• On sales taxes and layers on an income tax on top rather than doing a genuine tax swap to reduce regressive
• taxes like property taxes and the CCA tax.

Bills: SCR8410

Summary: The Senate considered engrossed substitute Senate Bill 6346, a major tax package creating a new income tax on high earners, providing tax reductions and credits, and funding various spending priorities. A point of order was raised that House amendments exceeded the bill’s scope under Senate Rule 66, focusing on new provisions affecting sales and use taxes and business and occupation taxes. The President ruled the amendments were within scope, finding they were tax reductions similar to those already in the Senate-passed bill, and the Senate then took up the motion to concur in the House amendments. Members debated the House changes at length. Supporters said the amendments improved the bill by expanding the Working Families Tax Credit, adding exemptions for diapers and over-the-counter medicines, bringing forward some tax relief, preserving business loss carryforwards, and adding funding or intent language for items such as Fair Start for Kids, K-12 investments, local government replacement funding, and universal school meals. Opponents argued the bill remained unconstitutional or unfair, criticized the income tax structure and inflation indexing changes, objected to the gambling-loss deduction and limits on charitable deductions, and said the bill’s promises on public defense, education, and other priorities were not secured in the body of the measure. On a roll call vote, the Senate concurred in the House amendments by a vote of 27-21, with one excused. The Senate then passed Engrossed Substitute Senate Bill 6346 as amended by the House by the same 27-21 vote, and the President signed the bill in open session. The chamber also received several messages from the House announcing signed bills, and then adjourned until the next scheduled meeting.

Transcript Highlights:

• So that's the language that we added.
• They're not waiving the tax. They're waiving the penalty. But they still have to pay the taxes.
• You still have to pay your taxes.
• There's fees and penalties both that get added on. So both those things are added on.
• The tax penalty component was, at the time, a logic point to say, good actors pay their taxes on time

Committee: House Special Committee on Intergovernmental Affairs

Transcript Highlights:

• </c> questions just have a few for U ad questions just have a few for U ad that's<00:36:28.920><c> okay
• Question for AD Gan with Hilo.
• tax and amends the cigarette tax disposition of revenues by allocating the increase in the cigarette
• The tax is just applied on a transaction basis, and our friends at the Tax Foundation in Washington,
• You know, we heard from two ads today, ad man and thank you for joining us in person, as well as ad gan

Committee: House Higher Education

Summary: The House Committee on Higher Education met at the University of Hawaiʻi’s Bachman Hall and heard testimony on several UH-related bills. HB 542 would expand the Hawaiʻi Promise Program to provide unmet-need scholarships at four-year UH campuses. UH system officials, the UH Student Caucus, and a Honolulu Community College student testified in support, emphasizing college affordability, student retention, and workforce needs. Committee members asked about current program data, eligibility, transfer patterns, and cost; UH said it had data available, noted about 10% of current Hawaiʻi Promise students transfer to four-year campuses, and estimated the full expansion would cost about $12 million. UH also suggested a possible alternative of focusing on transfer opportunities from two-year to four-year campuses. The committee then heard HB 840, which concerns athletics appropriations for UH. UH Mānoa and UH Hilo supported the bill. UH officials said the funding would help cover recurring athletics operating costs, women’s sports travel and recruiting, Austin Awards, and a new nutrition fueling station, while Hilo said the money would help with travel, per diem, and conference-related costs. Members asked about the history of the athletics funding, the difference between Austin Awards and special talent waivers, NIL planning, and whether the appropriation should be restored to the base budget. UH explained that a $4 million athletics appropriation was originally made in 2018 or 2019, later removed from the base, and has been reappropriated annually since then. Finally, the committee heard HB 842, which would fund three additional permanent mental health practitioner positions at UH Mānoa’s Counseling and Student Development Center. UH supported the bill, and Academic Labor United and a high school student testified in favor, citing student stress, overwork, and the need for more counseling access. In questions, members discussed the current counselor-to-student ratio, recruitment challenges in a tight labor market, and strategies for hiring, including looking at candidates on soft-money grants who may be seeking stable employment. No votes or final committee actions were taken during the portion of the meeting provided.

Transcript Highlights:

• That's been added onto this.
• That's been added onto this.
• That's been added onto this.
• That's been added onto this.
• used for the special tax.

Committees: House Local Government , House Local Government, Elections and Pensions

Transcript Highlights:

• What we're doing just to add is we're rounding out the plate, so to speak, and adding or possibly adding
• I'm here to present HB 142, the rural health care tax credit changes.
• care tax credit and would replace the current legislation.
• I've had a problem with this tax credit for a long time.
• So it would update the name from the rural health care tax credit to the health care tax credit and would

Committee: House House Health & Human Services

Transcript Highlights:

• $1.1 million in state sales tax revenue alone.
• Those producing ads will need more specificity.
• What if the ad also features human actors in the foreground, who are the primary focus of the ad?
• We do ads for campaigns, and at the end of the ads we say it real quickly: paid for by Tina McKinder
• We do ads for campaigns, and at the end of the ads, we say it real quickly paid for by Tina McKinner

Committee: House Arts, Entertainment, Sports, and Tourism

Transcript Highlights:

• So that's the language that we added.
• They're not waiving the tax. They're waiving the penalty. But they still have to pay the taxes.
• You still have to pay your taxes.
• There's fees and penalties both that get added on. So both those things are added on.
• Pays over $100,000 in property taxes a year. $100,000 in property taxes a year. $100,000.

Committee: House Special Committee on Intergovernmental Affairs

Summary: The committee first took up House Bill 2388 in executive session, considering a substitute that would combine two bills, add counties to the measure, and impose a felony penalty with a $100,000 fine for certain false claims. After Representative Black objected to the size of the fine and members discussed possibly amending it, the sponsor withdrew both the substitute and the motion to do pass, and the bill was set aside for reconsideration later. The committee then heard House Bill 3381, which would allow counties and certain cities to waive penalties on delinquent property taxes in hardship cases. The sponsor and several supporters, including a Clay County commissioner and a state public advocate, argued the bill would give local officials flexibility to help taxpayers who were delayed by events beyond their control, such as illness, theft, postal delays, or banking errors, while still requiring the underlying taxes to be paid. Members raised questions about proof of hardship, how the bill should be drafted, and whether local retirement funding tied to late fees would be affected. A representative of the county employees’ retirement fund testified in informational opposition, explaining that a portion of county tax penalties—about $20 million to $25 million annually—helps fund the retirement system and that waiving penalties would reduce that revenue. He said the fund was not opposed to flexibility for difficult cases, but wanted the committee to understand the fiscal impact and suggested that counties could instead appropriate money directly if they wanted to preserve funding. No final vote was taken on House Bill 3381 before the committee adjourned.

Transcript Highlights:

• So we’re just adding that.
• tax rates.
• If you go to Target in Gilbert, you're going to be taxed the Gilbert tax.
• Barnes, what was the tax, the original tax, and who paid it? Mr. Barnes: Mr.
• This is a tax credit.

Committee: House House Ways & Means Committee of Reference

Summary: The committee first took up House Bill 2290, which would clarify transaction privilege tax sourcing rules for tangible personal property by specifying that servers are not used to determine where an order is received and by defining business location. The sponsor and supporters argued the bill simply codifies existing origin-based treatment for Arizona businesses and provides certainty, while the League of Arizona Cities and Towns and ATRA warned it would shift revenue, create compliance problems, and potentially subject businesses to multiple tax rates depending on distribution or pickup locations. The Department of Revenue said it was neutral, noted a 2023 draft ruling had reflected a legal analysis of the issue but was never finalized, and said the bill would address a real need for clarity. After extensive debate over examples involving feed stores, Target, pizza delivery, and online orders, the committee voted 5-3 with one absent to return HB 2290 with a do pass recommendation. The committee then heard House Bill 2373, which would add a space on the individual income tax return for taxpayers to voluntarily contribute part of a refund to the Veterans Donations Fund or Veterans Service Organization Fund. The sponsor and a veterans policy advocate said the measure would give taxpayers a simple way to support veterans organizations, with examples from Colorado and local veterans projects. The bill passed unanimously, 8-0 with one absent, and was returned with a do pass recommendation. Finally, the committee considered House Bill 2143, a technical PSPRS measure that would limit the 5% ownership cap to publicly traded corporations. PSPRS representatives said the change would align the statute with its intended purpose, reduce unnecessary workarounds and legal costs, and preserve broader investment flexibility while maintaining other risk controls. Members discussed how the cap compares with ASRS and other retirement systems, and the bill was still under discussion at the end of the transcript.

Transcript Highlights:

• We also added... We also added Dr. Recreation to the commission.
• Fundamentally, we need to improve our tax base and not increase our tax rates.
• The hotel tax dedicates there.
• So you impose the tax on the people without an election? Well, it’s already a tax.
• It’s already a tax, yes, sir. It’s a hotel-motel tax.

Summary: The Committee on Municipal, Parochial and Cultural Affairs met on March 26 at 9:07 a.m., approved the prior session minutes, and then heard a series of local government and district-creation bills. Members and witnesses repeatedly emphasized regional cooperation, economic revitalization, and neighborhood security. The committee also welcomed several new members and staff before moving into the agenda. HB 892 by Rep. Hilferty would create the West End Economic Development District spanning Orleans and Jefferson Parishes to support redevelopment of the former Fitzgerald’s/Bruning’s site; the bill was backed by local officials, and members noted a survey-related legal description would be added later. HB 681 would raise the Lakeview Crime Prevention District’s maximum fee authority from $150 to $250, subject to district approval. HB 99 (Fair Day Downtown Entertainment District) was amended to revise board appointments, add sheriff’s patrol/arrest authority, and adjust board terms, then advanced favorably. HB 138/139 created or updated crime prevention districts in East Baton Rouge Parish, including Parkwood Terrace, Victoria Farms, and Parkview Oaks, with changes to fee-setting authority, boundary descriptions, and board composition; these bills were also moved forward. The committee also advanced HB 213, a cleanup bill for the Baton Rouge Downtown Development District that restructures the board to include property owners and lessees and adds powers and duties; members praised the district’s work downtown. HB 247 would create the Allen Parish Economic Development District and abolish the Allen Parish Tourist Commission, but an amendment preserved tourism-related functions, and the bill was supported by the Louisiana Travel Association. HB 122 created the Spring Lake Subdivision Improvement District with an election-based fee increase up to $325, and HB 462 changed the board composition of the Capital Area Road and Bridge District to add legislative members for oversight. Several other bills were deferred, including HB 788, HB 200, HB 12, and HB 239.

Transcript Highlights:

• their tax returns from the state income tax perspective.
• And as I mentioned, these tax cuts really aren't tax cuts.
• Our tax system is set up to tax profits. If you make an expense... We're going to tax.
• Our tax system is set up to tax profits.
• tax returns.

Summary: The joint House Ways and Means and Senate Finance committees met to hear identical conformity bills, HB 2153 and SB 1106, which would align Arizona tax law with the federal Internal Revenue Code as of Jan. 1, 2026, including some retroactive provisions for tax year 2025. Staff explained that the bills would exclude three federal provisions: the higher federal SALT deduction, the new senior deduction as written in H.R. 1, and the deduction for interest on new car loans. They would instead include a $6,000 retirement-income deduction for taxpayers age 60 and older, a $6,000 Roth IRA contribution deduction, a higher dependent tax credit, and a deduction for child and dependent care expenses above the federal credit. JLBC estimated the package would reduce general fund income tax revenue by about $441.3 million in FY 2026. Members also discussed that the Department of Revenue’s forms had been issued assuming full conformity, and staff and supporters argued the bills were needed quickly to avoid confusion and amended returns during filing season. Committee members and sponsors largely framed the bills as tax relief and a way to provide certainty for taxpayers and preparers. Supporters said the package would help families, seniors, and workers, and noted that the Arizona version was negotiated to keep the overall tax relief roughly comparable to full conformity while shifting benefits away from the SALT deduction and toward child credits, retirement income, and child care. The sponsors also criticized the governor’s executive action and urged prompt passage so taxpayers would know how to file. Opponents argued the bills would reduce state revenue, worsen the budget outlook, and disproportionately benefit higher-income taxpayers and corporations. Several witnesses and members also raised concerns about the child care deduction, the retirement-income deduction, and the business expensing provisions, while supporters responded that the bill was designed to help working families and encourage saving and investment. Public testimony was mixed. The Arizona Society of Certified Public Accountants and the Arizona Free Enterprise Club supported the bills, emphasizing early conformity, filing certainty, and reduced confusion for taxpayers and software providers. Opponents included Save Our Schools Arizona, the Arizona Center for Economic Progress, Opportunity Arizona, and several individuals, who argued the package would deepen budget problems and favor the wealthy. One witness objected to a federal school-choice-related provision she said was being tied to the bill, though committee members said the measure before them was a tax conformity bill and not a school finance bill. The hearing included extended debate over the fiscal impact, the governor’s prior requests for some of the same tax changes, and whether taxpayers would need to file amended returns if the legislature later changed course. The transcript ends during testimony from NFIB, with no final committee vote or action shown in the excerpt.

Transcript Highlights:

• file their tax returns from the state income tax perspective.
• And as I mentioned... ...these tax cuts really aren't tax cuts.
• Our tax system is set up to tax profits.
• and adopting the Trump tax cuts in Arizona, applying the Trump tax cuts to the Arizona tax code.
• tax returns.

Summary: The joint House Ways and Means and Senate Finance committees met to hear identical Arizona tax conformity bills, HB 2153 and SB 1106, which would conform state tax law to the federal Internal Revenue Code as of Jan. 1, 2026, with some provisions applied retroactively to tax year 2025. Staff explained that the bills exclude the federal senior deduction for those 65 and older, the higher state and local tax deduction, and the new car loan interest deduction, while including a $6,000 retirement-income deduction for taxpayers 60 and older, a $6,000 Roth IRA contribution deduction, a higher dependent tax credit, and a deduction for child and dependent care expenses above the federal credit. The JLBC fiscal note estimated a $441.3 million general fund revenue loss in FY 2026, and members discussed that this was roughly the same as full conformity because the bill’s adjustments offset some of the federal changes. Bill sponsors and supporters argued the measure should be enacted early to give taxpayers and tax preparers certainty before filing season, noting that the Department of Revenue had already issued forms assuming conformity and that delay could force amended returns. They said the bill reflects a negotiated package that preserves most of the federal tax relief while tailoring it for Arizona, especially by lowering the senior deduction age to 60 and replacing the auto loan deduction with family-focused provisions such as the higher child credit and child care deduction. The Arizona Society of CPAs and the Arizona Free Enterprise Club supported the bills, emphasizing the need for early conformity and fewer filing complications. Opponents, including Save Our Schools Arizona, the Arizona Center for Economic Progress, Opportunity Arizona, and several individuals, argued the package would reduce state revenue, worsen the structural deficit, and mainly benefit higher-income taxpayers and corporations. Some witnesses criticized the inclusion of federal school-choice-related provisions and warned about uncertainty around future federal guidance, while others said the bill should not move ahead before the budget process. Members also debated whether taxpayers would need to file amended returns if the state later diverged from the Department of Revenue forms, and whether the senior and child care provisions were targeted or equitable. The transcript ends during public testimony, with no final committee vote or action shown.