Transcript Highlights:

• </c><00:16:02.240><c> credit</c> fuel tax credit establishes a tax credit fuel tax credit establishes
• </c> &gt;&gt; Hawaii do tax with comments. &gt;&gt; Hawaii do tax with comments.
• Do tax being refundable in 2022.
• We have to go tax. committee, Robert W. We have to go tax.
• Hono Kakua in support on Zoom. tax cut, the billion dollars in tax cuts tax cut, the billion dollars

Summary: The committee heard testimony on HB 1694, which would create a sustainable aviation fuel tax credit, and HB 1695, which would expand the state’s renewable fuels production tax credit. For HB 1694, supporters from the airlines, renewable fuels industry, business groups, and some environmental and youth representatives said sustainable aviation fuel is a practical near-term way to cut emissions in aviation, a hard-to-decarbonize sector, and argued the credit would send a market signal, support local production, and help meet state climate goals. Opponents, including Energy Justice Network and a taxpayer-focused testifier, argued the bill could subsidize expensive fuels that may not be truly clean, could duplicate benefits available under other tax provisions, and should not support transpacific aviation or technologies they said are unproven or harmful. The Department of Taxation stood on written testimony, and the chair later asked that all verbal testimony on remaining bills be limited to one minute because of time constraints. HB 1695 drew similar support and opposition, but focused more broadly on renewable fuels for transportation, trucking, shipping, and other sectors. Supporters, including the Hawaii State Energy Office, airlines, PAR Hawaii, the Hawaii Renewable Fuels Coalition, Pacific Biodiesel, and the RNG Coalition, said the bill would help scale local fuel production, reduce greenhouse gas emissions, support jobs and agriculture, and advance the state’s climate and energy goals. Several supporters emphasized that the credit would help build a local industry and that life-cycle accounting should be used to measure emissions benefits. Opponents repeated concerns that some biofuels and waste-based fuels may not be climate-beneficial, may rely on flawed modeling, and could create costly infrastructure that would need to be replaced later. No votes or final committee action were taken in the portion of the meeting provided.

Transcript Highlights:

• Taxes that will start in 2027, and counties will be receiving new revenue from solar property tax.
• Without certainty around tax liability, we will be losing...
• If you're having an asset that's not having any tax revenue and then the law changes to bring in tax
• If you're having an asset that's not having any tax revenue and then the law changes to bring in tax
• Tax Board.

Summary: The Assembly Revenue and Taxation Committee held a final hearing on a series of Senate bills, with the chair explaining the committee’s suspense-file process and then taking up measures in regular order and later from suspense. SB 1329 on solar property tax assessment drew the most extensive testimony: the author and industry supporters said it would create statewide assessment standards, exclude intangibles, and provide certainty for solar development, while county assessors and county representatives opposed it as a statutory formula that would undercut fair market value and reduce local revenue. The bill was sent to suspense during the first portion of the hearing and later passed suspense 5-2 after amendments. SB 661, dealing with airport funding and aviation fuel tax revenues, also generated support from airport and local government representatives but opposition from airlines over the proposed distribution formula; it was referred to suspense and later passed 7-0 with amendments. SB 1172, which places guardrails on tax-sharing agreements, was supported by local governments and retailers; after the author accepted committee amendments, opposition was withdrawn and the bill passed 4-2 to the floor. SB 9-1-1, a wildfire safety measure using the Preliminary Change of Ownership Report to notify fire agencies about defensible-space compliance, was supported by fire chiefs and wildfire-safety advocates but opposed by assessors; it passed 5-2 to Appropriations. SB 1408, authorizing Contra Costa County to place a transportation sales tax on the ballot, passed 4-2 to the floor. SB 1072, the housing omnibus bill, passed 7-0, and SB 1424, expanding a sales tax exemption for zero-emission vehicle fueling equipment, was held in committee after support from hydrogen and electric transportation advocates and no opposition. In suspense-file action, the committee also passed SB 1435, SB 288, SB 296, SB 420, SB 881, SB 888, SB 1053, SB 1406, and SB 1407, while SB 353 and SB 1249 were held. The chair closed by thanking members, staff, stakeholders, and a retiring consultant, and adjourned the committee.

Transcript Highlights:

• extraordinarily high local sales tax rates.
• and use tax cap.
• County's property tax, I mean, sales tax. And then another thing...
• County raises their taxes to 2.5 on their sales tax, what about cities? What happens to cities?
• AB 1768 does not raise taxes. Make it clear. AB 1768 does not raise taxes.

Summary: The Senate convened with a quorum, prayer, the Pledge of Allegiance, and a floor introduction welcoming Berkeley Mayor Adina Ishi. The body then moved through a series of third-reading bills, with most measures presented as responses to current policy concerns and several placed on call before roll votes were completed. Early measures included SB 1312 on abandoned cemeteries, SB 1112 increasing penalties for towing industry notice violations, SB 877 requiring insurers to disclose claim materials and revisions, SB 1046 directing Cal/OSHA to develop protections for workers exposed to transboundary pollution in the Tijuana River Valley, and SB 1091 creating a community anti-displacement and preservation housing program. These bills generally drew support and passed, with SB 1091 ultimately passing 34-2 after a call vote. The floor also considered SB 951 on AI-related layoffs and worker notice, SB 1030 repealing the “man in the house” rule in CalWORKs, SB 1218 tying vehicle registration renewal to payment of illegal dumping fines, SB 1013 tightening privacy and oversight rules for automated license plate readers, SB 1116 making technical changes to the Starter Home Revitalization Act, SB 1201 protecting veterans from food-assistance cuts, and SB 1164 strengthening state voting-rights protections. Debate on SB 1013 featured sharp disagreement over whether the bill’s 30-day retention limit and audit requirements were necessary guardrails or would hinder law enforcement investigations. SB 1164 also drew opposition over concerns about litigation and expanded Attorney General oversight, but supporters argued California should codify voting-rights protections amid federal uncertainty. Most of these measures passed, with SB 1013 and SB 1164 receiving notable no votes. A major portion of the session focused on AB 1768, an urgency measure authorizing Los Angeles and Contra Costa counties to place local sales-tax measures before voters to help offset federal funding cuts to health care and safety-net services. Supporters framed it as a local-control measure needed to backfill losses from federal disinvestment and protect Medi-Cal, CalFresh, hospitals, clinics, and county services; opponents argued it would worsen affordability, expand regressive taxation, and bypass normal committee review. After extensive debate, the urgency measure received the required votes and passed. The Senate also adopted SCR 171 designating May 20 as California Nonprofits Day by unanimous roll call. The session ended with committee announcements, including budget subcommittee meetings, and a notice that the Senate would recess and reconvene later in the week.

Transcript Highlights:

• be in the tax bill.
• be in the tax bill.
• individual property tax bill.
• individual property tax bill.
• individual property tax bill.

Committee: House Education Finance

Transcript Highlights:

• </c><00:02:29.360><c> changes</c> issues looking at tax changes issues looking at tax changes for<00:
• Minnesotans have had enough of this tax-and-spend agenda. Instead, Minnesotans want tax relief.
• Finally, we need to be repealing our taxes like the gas tax inflator, getting rid of the tax on tips,
• 05:10.600><c> tax</c> motans want tax relief we want tax motans want tax relief we want tax relief<00
• </c> repealing our our taxes like the gas tax repealing our our taxes like the gas tax inflator<00:05

Transcript Highlights:

• sales tax revenue for the state.
• sales tax revenue for the state.
• sales tax revenue for the state.
• That means our members are paying excise taxes, collecting meals tax, sales tax, and bottle deposits
• We collect, as Sarah mentioned, bottle deposits, meals, food and beverage tax, and sales tax.

Summary: The commission met for its second hearing to study the future of credit card payments and sales transactions and their impacts on small businesses. Members heard extensive testimony from credit unions, retailers, restaurants, and payment-industry representatives on interchange fees, processing fees, fraud, chargebacks, rewards programs, and the ability of businesses to pass fees on to customers. Several witnesses argued that swipe fees have risen sharply, are especially burdensome for restaurants and other small businesses, and are charged on taxes and tips that are merely pass-through amounts. They urged state action to prohibit fees on tax and tip portions, improve transparency, and allow surcharging or convenience fees, while opponents warned that state regulation could reduce fraud protections, increase compliance costs, and threaten consumer rewards programs. Business owners and trade groups described thin margins, rising costs, and the difficulty of understanding merchant statements or negotiating with processors. Restaurant witnesses said card-not-present and online transactions create the greatest fraud and chargeback risk, with money often removed immediately from merchants’ accounts and disputes rarely resolved in their favor. Retail witnesses gave examples of rising effective rates, higher fees on rewards cards, and the burden of processing fees on low-value transactions. A representative from the Massachusetts Restaurant Association and others said restaurants are effectively paying fees on meals tax and gratuities, which they argued should not be subject to interchange charges. On the other side, the Cooperative Credit Union Association said interchange revenue helps credit unions fund fraud prevention, rapid card replacement, and member protections, and warned that state limits on interchange could weaken those safeguards and lead to higher consumer costs or reduced services. Airlines for America testified that airline credit card rewards are popular, support travel and jobs in Massachusetts, and could be harmed by interchange reform. The National Restaurant Association and a payments-policy attorney countered that interchange fees are set by card networks rather than competitive markets, that banks remain highly profitable even with rewards, and that states can act after recent court decisions. No votes were taken; the hearing consisted of testimony and questions from commissioners.

Transcript Highlights:

• </c> Draft 1 relating to income tax. Draft 1 relating to income tax.
• . taxes.
• of our tax reform policy.
• </c> income tax credit and food excise tax income tax credit and food excise tax credit<00:34:53.399>
• </c> at the core of our tax reform policy. at the core of our tax reform policy.

Transcript Highlights:

• The conference committee amendment for HB 7031E provides for a number of tax reductions and other tax-related
• taxes from 8% to 5%, a reduction on slot machine revenue taxes from 35% to 34%, the elimination of a
• sales tax holiday, language clarifying the sales tax exemption for small propane gas tanks, a reduction
• of carbon taxes from 8% to 5%, a reduction on slot machine revenue taxes from 35% to 34%, the elimination
• We are offering up a ton of tax relief. We are offering up a ton of tax relief.

Summary: The House convened with prayer, a moment of silence for former Senator Don Childers, the Pledge of Allegiance, and recognition of Officer Antonio Richardson as law enforcement officer of the day. The chamber announced it would take up 11 budget conference committee reports, with no third-reading bills or special-order calendar items. Members were reminded that conference reports were subject to debate but not amendment, and that the required review periods had been satisfied. The first major action was on HB 7031E, the tax package. Representative Duggan explained that the conference report included a mix of retained, modified, and new tax provisions, including sales tax holidays, property tax and homestead-related changes, reductions in certain gaming and carbon-related taxes, changes to child care and documentary stamp tax credits, a new refund process for public works construction tax paid by universities and colleges, and other tax administration changes. Debate focused on the bill’s consumer impact, the reduction of the child tax credit from three years to one, the inclusion of firearm accessories in a sales tax holiday, the absence of gas tax relief and combined reporting, and the homestead exemption provision for certain deployed diplomatic and foreign service personnel. Critics argued the package favored niche or corporate interests over broad affordability relief, while supporters said it provided targeted tax relief and reflected conference negotiations. The House adopted the conference report and passed HB 7031E by a vote of 88-11. The House then began presenting the conference report for HB 501E, the state budget, which totaled $114.5 billion for fiscal year 2026-27 and was described as below the prior year’s spending level while maintaining reserves. Subcommittee chairs outlined major budget areas: pre-K-12 funding included an increase in FEFP, salary increases for veteran teachers, stabilization funding, and support for declining enrollment; higher education included full Bright Futures funding, workforce programs, college operating support, university initiatives, and school guardian expansion; IT funding focused on Palm, ACCESS, APD’s I-Connect replacement, corrections systems, emergency management systems, and cybersecurity grants; health care funding covered Medicaid, nursing home rates, waiver provider increases, ADAP funding and restructuring, child welfare, and behavioral health; transportation and economic development included housing, cultural grants, jobs and rural infrastructure, Visit Florida, Space Florida, highway patrol equipment, and local transportation projects; justice funding included correctional construction, juvenile justice facilities, law enforcement grants, and clerk and due process reimbursements; state administration included fire stations, constrained counties, building maintenance, and Safe Florida Home; and agriculture/natural resources funding emphasized Everglades restoration, water quality, land acquisition, Florida Forever, state parks, and citrus research. Members then began questioning the budget details, including school voucher accountability, school funding formulas, public defender parity, prison technology, wastewater monitoring in prisons, ADAP policy, SNAP fraud controls and AI-assisted verification, Florida Forever funding, school lunch funding, and coral reef restoration. No final vote on HB 501E appears in the transcript excerpt.

Transcript Highlights:

• </c> feed stock eligible for this um tax feed stock eligible for this um tax credit<00:20:44.720><c>
• first come, first served aspect of that tax credit, and the state does have other tax credits which do
• </c> more likely a $110 million ongoing tax more likely a $110 million ongoing tax credit<00:31:54.639
• that you have a good standing with the Department of Tax and a solid tax history before you can make
• such a large claim on tax credits.

Committee: House Economic Development & Technology

Summary: The Committee on Economic Development and Technology heard testimony on HB 976, a measure related to incentives for renewable fuels, including renewable diesel and sustainable aviation fuel. Supporters said the bill would help close the cost gap between renewable and conventional fuels, strengthen Hawaii’s energy security, support climate goals, and encourage local economic development. Testifiers from Pono Pacific, PAR Hawaii, Hawaiian Electric, Hawaiian Airlines/Alaska Airlines, the Hawaii Department of Transportation, Pacific Biodiesel, Aloha Carbon, and others described ongoing or planned projects, local feedstock development, and potential benefits for agriculture, waste diversion, and emissions reductions. Several testifiers also discussed proposed amendments. The Hawaii Renewable Fuels Coalition said it wanted to remove the import tax credit, eliminate the aggregate cap increase to avoid additional state funding, and revise local-production language to rely on a carbon-intensity threshold rather than location-based preferences. The Tax Foundation of Hawaii raised technical concerns about the bill’s administration, including prorating credits if the cap is exceeded and the feasibility of a 30-day filing window. Some supporters urged keeping solid waste, including construction and demolition debris, as eligible feedstock, while Energy Justice Network opposed that approach and also urged removing GMO-related language and waste-based feedstocks because of environmental and toxic emissions concerns. Opposition testimony focused on the bill’s cost and feasibility. Energy Justice Network and Ted Metros argued the measure could become a large subsidy for a refinery and questioned whether Hawaii has enough land and water to produce meaningful quantities of biofuel locally. Metros also criticized the refundable credit structure and said the state should not bear the cost for what he described as a benefit largely tied to tourism and imported fuel. No vote was taken during the portion of the hearing provided; the chair later noted the committee had received 13 testimonies in support, 18 in opposition, and seven comments, and then invited further discussion on cost allocation and lowering caps to broaden participation.

Transcript Highlights:

• </c> for tax year 2025. for tax year 2025. &gt;&gt; Thank<00:05:20.400><c> you.
• </c> house because the the we we tax house because the the we we tax properties<00:38:10.400><c> as</
• </c> different matter of moving the taxes different matter of moving the taxes from<00:41:07.119><c>
• </c><00:59:16.319><c> Um,</c> part of our tax law. Um, part of our tax law.
• </c> years of paid residential property tax. years of paid residential property tax.

Bills: HB0045

Committee: House Revenue

Transcript Highlights:

• DoR estimates the expanded exemption will cause a minimal shift of local property taxes.
• Bill 5252 to allow the full acreage of each grange to be tax-exempt.
• Senate Bill 5994 relates to the distribution of timber tax revenues.
• Senate Bill 5994 relates to the distribution of timber tax revenues.
• For some quick background, the timber tax is an excise tax imposed on timber in lieu of property tax.

Summary: House Finance held public hearings on two Senate bills. On Senate Bill 5252, staff explained that the bill would remove the one-acre limit on a property tax exemption for nonprofit public assembly halls, beginning with property taxes due in 2027. Staff said the fiscal impact would be minimal, with no loss to the state levy and only a small local property tax shift, though the Department of Revenue anticipates a one-time administrative cost. Senator Shoemaker and a grange representative testified in support, saying the change would help rural granges that serve as community gathering places and are facing rising costs and property tax burdens. The committee then heard Senate Bill 5994, which would change how timber tax revenues are distributed to school districts. Staff said the bill would extend distributions to districts that had qualifying levies in either of the prior two years, even if they do not have such a levy in the current year, and that it would take effect immediately with no state revenue impact but an indeterminate effect on school district funding. A county assessor testified that he supported the policy but was concerned the immediate effective date would disrupt current levy distribution calculations and suggested a January 1, 2027 effective date instead. No votes were taken, and both hearings were closed before the committee adjourned.

Transcript Highlights:

• c><02:38:29.600><c> purchase</c> generation tax or tax rate to purchase generation tax or tax rate to
• You're taxing separate business transactions, but to be taxed at a single event like a sales tax, correct
• So that's why they're taxed the way they are taxed.
• Okay. additional tax taxation. additional tax taxation.
• </c> are taxed. are taxed.

Summary: The committee first heard HB 2021, a transportation measure creating a framework for electric bicycle and micromobility regulation. The bill would define electric bicycle and electric micromobility device, set age and helmet rules, restrict class 3 e-bikes from sidewalks, allow limited sidewalk use for class 1 and 2 bikes, prohibit high-speed electric devices and certain nonconforming devices in specified locations, update county tax definitions, and change related terminology. Testimony was largely supportive from DOT, police, Honolulu officials, Hawaii Bicycling League, AAA Hawaii, the Hawaii State Teachers Association, and several individuals, while DCCA’s Insurance Division asked for clarity on whether insurance would be required. Committee discussion focused on safety, enforcement, and the fact that no insurance market currently exists for these e-bike classes; members also discussed the need to target bad actors rather than ordinary riders. The chair then proposed and the committee adopted amendments to HB 2021, including clarifying that road-legal, permitted, classified electric bicycles are not subject to insurance requirements at this time; allowing properly classified electric bicycles on sidewalks at 10 mph or less subject to county restrictions; barring high-speed electric devices and other nonconforming devices from public roadways; authorizing impoundment of non-road-legal or improperly registered devices; and requiring direct parental supervision for riders under 16 on class 2 or 3 e-bikes. The committee also made technical and effective-date changes. The recommendation to pass HB 2021 with amendments was adopted unanimously by the members present. The committee next took up HB 1641, a related transportation bill addressing high-speed electric devices. The chair explained that the measure would prohibit the sale, lease, rental, distribution, possession, or operation of high-speed electric devices and establish penalties, but the committee’s version would narrow the focus to devices covered by HB 2021. The amended bill would prohibit offering high-speed electric devices for lease or rent, require sellers to comply with the new regulatory framework, ban operation on bicycle lanes, highways, roadways, and streets, and set a civil penalty of $250 to $1,000 per violation. After no further questions, the committee voted to pass HB 1641 with amendments, and the recommendation was adopted. The meeting then moved to HB 1709, which would transfer regulation of the Hawaii Water Carrier Act from the Public Utilities Commission to the Department of Transportation and make conforming changes with an appropriation. DOT testified in support, while the PUC and DCCA’s Consumer Advocacy Division raised concerns about preserving consumer protections and the complexity of moving the regulatory framework. Young Brothers supported the bill and said the current system is outdated, but the discussion remained ongoing; the transcript cuts off before any final action on HB 1709 is shown.

Transcript Highlights:

• There is no tax break on In the tax bill, there is no tax break on gas, and we know that our people are
• It reduces the tax on slot machine revenues from 35% to 34%, and it reduces the gross receipts tax on
• And it also allows for the tax collector to also waive those commissions on that tax collection.
• I agree with Senator Pizzo that we should not be rewarding donors via tax exemptions in this tax package
• When you ask your constituents, would you rather have a tax break on gas or a tax break on guns?

Transcript Highlights:

• </c> builds on the nationleading SAF tax builds on the nationleading SAF tax credit<00:03:42.159><c>
• The SAP tax our clean water goals.
• </c> dioxide, are eligible for the tax dioxide, are eligible for the tax credit.<00:20:22.160><c> Power
• </c> success by extending Minnesota's SAF tax success by extending Minnesota's SAF tax credit,<00:30:
• </c> policy and enough dollars in the tax policy and enough dollars in the tax incentive<00:34:39.280

Transcript Highlights:

• for a fuel tax increase, an excise tax, and registration fee increase.
• I think the estate tax is a fair tax.
• I recognize that a lot of people think the estate tax is an unfair tax.
• I do think that the death tax is an unfair tax. You work your whole life.
• I do think it's an unfair tax overall, but certainly a 20% tax rate is much better than a 35% tax rate

Bills: HB2720 , HB2073 , SB5816 , SB5919 , SB5831 , SB6244 , SB6044 , SB5109 , SB5877 , SB6258

Summary: The House first took up Substitute Senate Bill 6225, a transportation bond measure. Supporters said it was needed to fund preservation and maintenance of Washington’s transportation system, including road upkeep and emergency repairs, while opponents argued the state had already addressed current needs through a recent unanimous budget and existing bond authority. The bill passed final passage 59-38, meeting the required three-fifths vote. The House then considered Gross Substitute Senate Bill 6260, an education budget-related bill with many floor amendments focused on transition to kindergarten, alternative learning experience (ALE) funding, local effort assistance (LEA), educational service district reserves, superintendent pay, MSOC funding, and collective bargaining limits. Most proposed amendments were rejected, though Amendment 2654 on TK priorities was adopted. After the committee amendment as amended was adopted, the bill advanced to third reading and then passed 50-47. Supporters described it as a necessary budget reduction and risk-management measure; opponents argued it cut K-12 funding too deeply, especially in rural and property-poor districts, and would worsen inequities and invite litigation. The House also concurred in Senate amendments and passed several other bills. House Bill 1796, about school construction financing and capital levy use, passed 95-2. Second Substitute House Bill 2105, dealing with immigrant worker protections, passed 58-38. Engrossed House Bill 2211, on food sourcing for a health-related program, passed unanimously. Engrossed Substitute House Bill 2225, regulating companion chatbots and child safety, passed 74-21. Engrossed Substitute House Bill 2247, related to animal care, passed unanimously. Engrossed Second Substitute House Bill 2418, streamlining permitting timelines to support housing affordability, also passed unanimously. The House then moved on to additional Senate-concurred bills, beginning with Second Substitute House Bill 1906.

Transcript Highlights:

• sales tax revenue for the state.
• So yes, if we want to pay our meals tax online or if we're paying a fee, an excise tax, something to
• We pay 7% tax. So that increases the fees that we have to pay just to collect meals tax. We pay 7%.
• I don't think that necessarily, by saying they can't tax taxes and tip, that's within a Massachusetts
• That means our members are paying excise taxes, collecting meals tax, sales tax, and bottle deposits

Summary: The commission met to hear testimony on the future of credit card payments and swipe fees, with a focus on impacts to small businesses, especially restaurants and retailers. Members and witnesses discussed interchange fees, processing fees, chargebacks, fraud risk, rewards programs, and the growing use of card-not-present and digital wallet transactions. Several witnesses urged the commission to support legislation that would prohibit fees on the tax and tip portions of transactions and allow businesses to pass credit card fees on to customers if they choose, while others warned that state regulation of interchange could reduce fraud protections and harm consumer rewards programs. Small business owners and trade groups described rising costs and thin margins, saying card fees are now among their largest expenses and are often charged on money that is merely passing through the business, such as sales tax and gratuities. Restaurant representatives said the current system shifts fraud and chargeback losses onto merchants, with little ability to negotiate rates or recover disputed funds, and argued that transparency and fee relief would help keep independent businesses open. Retailers gave similar testimony, citing rising swipe fees, complex statements, and the burden of online and phone transactions. A representative from the airline industry opposed interchange reform, arguing that airline credit card rewards are popular with consumers and support travel and jobs in Massachusetts. Credit union representatives cautioned that state-level interchange limits could weaken fraud prevention and force higher rates or reduced services, while the National Restaurant Association and a payments-policy attorney countered that banks and networks already operate under fee caps in other contexts and that interchange rates are fixed rather than competitive. Commission members asked questions about how chargebacks work, how fees are broken down, whether businesses can negotiate with processors or POS providers, and how consumer behavior has shifted toward cards, online ordering, and delivery since the pandemic. No votes or formal actions were taken during the hearing.

Transcript Highlights:

• The tip wouldn't necessarily apply at Racetrack, but on the sales tax and tips, sales tax applies to
• Yours is more fuel tax.
• And so the convenience factor, whether it's tax, sales tax, the actual product, or a tip, is the same
• Property taxes were about $283,000. Liquor, beer, and wine tax...
• Income tax, right? And then we put it in the Constitution; we don't want an income tax here.

Bills: SB231 , SB584 , SB600 , SB668 , SB841 , SB986 , SB1003 , SB1244 , SB1625 , SB1960 , SB1963 , SB1964 , SB2026 , SB2056 , SB2368

Committee: Senate Business & Commerce

Transcript Highlights:

• But remember that whenever we do make modifications to the property tax system, that it's a tax shift
• This would apply to tourist development taxes and local option taxes, except when those taxes have been
• local option taxes.
• This would apply to tourist development taxes and local option taxes, except when those taxes have been
• local option taxes.

Committee: Senate Community Affairs

Summary: The committee took up several claims bills and tax-related measures. It reported favorably SB 20, providing $400,000 in relief to J.N., a minor injured on a Hillsborough County sidewalk, and SB 14, providing $1.7 million to the estate of Pineal Januier after a drowning at a Miami Beach youth center pool. It also approved SB 674, which would let property appraisers, like tax collectors, budget for hiring and retention bonuses with Department of Revenue approval. In each claims bill, the sponsor described the underlying incident, the settlement amount, and the remaining payment sought under sovereign immunity limits; there was no opposition on the claims bills. The bonus bill drew support from property appraisers who said it would help them compete for specialized staff without requiring new appropriations. The committee then considered SJR 1510 and its implementing bill, which would create a new homestead-like property tax benefit for owners who lease a non-homestead property for more than six months as residential rental housing. Supporters said it was intended to encourage more affordable rental housing by extending a $50,000 exemption and Save Our Homes-style assessment cap to qualifying properties. County and city representatives, the Florida League of Cities, and the Florida Association of Counties opposed the proposal, warning of major revenue losses, reduced public safety funding, and tax shifts to other property owners and businesses. Several senators also raised concerns about density, parking, and whether landlords would actually pass savings on to renters. Despite the opposition, both the constitutional amendment and the implementing bill were reported favorably. The committee also approved CS for CS SB 268, as amended to include congressional members, creating a public-records exemption related to certain residential information for elected officials. The First Amendment Foundation opposed it, arguing the bill lacked a sufficient public purpose and could hinder transparency, while senators supporting it cited real threats and harassment against themselves and their families. SB 100, which bans government display of flags representing political viewpoints and allows active or retired military members to use reasonable force to stop desecration of the U.S. flag, also passed after extensive debate. Opponents argued it was vague, unconstitutional, and aimed at pride and other identity-related flags; supporters said government buildings should not display political messages and that the bill protects neutrality. Finally, the committee approved CS/SB 1664, which would require voter reapproval every eight years for local discretionary taxes such as tourist development taxes and local option taxes, with exceptions for pledged bond revenues. Cities, counties, tourism groups, and the restaurant/lodging industry opposed it, saying it would create uncertainty, threaten tourism and infrastructure funding, and complicate long-term planning; Senator Sharief and others said the measure would disrupt existing surtax-backed projects and revenue streams.

Transcript Highlights:

• sales tax revenue for the state.
• So yes, if we want to pay our meals tax online or if we're paying a fee, an excise tax, something to
• We pay 7% tax. So that increases the fees that we have to pay just to collect meals tax. We pay 7%.
• I don't think that necessarily, by saying they can't tax taxes and tip, that's within a Massachusetts
• That means our members are paying excise taxes, collecting meals tax, sales tax, and bottle deposits

Summary: The commission met to continue studying credit card payments, interchange fees, fraud, chargebacks, and the impact of card processing costs on small businesses, especially restaurants and retailers. Members heard extensive testimony from credit unions, retailers, restaurant owners, payment-industry representatives, and an airline trade group. Supporters of reform argued that swipe fees are a major and rising expense, that businesses are paying fees on sales tax and tips that are merely pass-through amounts, and that merchants have little negotiating power. Several restaurant and retail witnesses described thin margins, higher costs for card-not-present transactions, and chargebacks that they said usually favor cardholders and leave merchants absorbing losses and fees. Witnesses from the Cooperative Credit Union Association cautioned that state-level interchange regulation could reduce revenue used for fraud prevention, compliance, and member services, and could lead to higher rates or reduced access. Retail and restaurant representatives countered that fees have risen sharply, that statements are difficult to decipher, and that rewards programs and card-network pricing are subsidized by merchants and ultimately by all consumers. The Massachusetts Restaurant Association and independent operators urged legislation to bar fees on tax and tip portions of transactions and to allow businesses to pass along card fees if they choose, saying this would improve transparency and fairness and help keep small restaurants open. Other testimony came from the National Restaurant Association, which supported interchange reform and said modern point-of-sale systems can already separate tax and tip amounts, and from a payments-industry group that emphasized the broader economic benefits of digital payments and warned against state-by-state rules. Airlines for America opposed changes that could undermine airline credit card rewards programs. Commission members asked detailed questions about fee structures, card types, chargebacks, POS systems, and whether consumers paying cash are also affected. No votes or formal actions were taken at the meeting.

Transcript Highlights:

• The tax and tip interchange proposal is not a simple spreadsheet adjustment.
• In this case, I'm just mentioning sales tax from the equation.
• due, up to $1,000 for a tax filing period.
• It's a credit off of the sales tax that is legally due and owed to the state.
• Can Massachusetts, you know, you mentioned a state that does a tax credit.

Summary: The Special Legislative Commission on the Future of Payments and Sales Transactions by Credit Card and the Impacts for Small Businesses held a public hearing focused on interchange fees, sales tax and tip processing, chargebacks, fraud, surcharging, and the broader future of payment systems. Chair Paul Feeney and co-chair Rep. Jamie Murphy opened by explaining the commission’s charge and inviting testimony from small businesses, industry groups, banks, and policy experts. Representative Sean Garballey testified first, arguing that Massachusetts tourism depends on universal card acceptance and stable interchange, and urging the commission not to disrupt the current system ahead of major events expected to bring millions of visitors to the Commonwealth. A large portion of the hearing featured independent restaurant owners and advocates describing thin margins and the burden of paying percentage-based processing fees on sales tax and tips that are not business revenue. Jen Ziskin, Kristen Canty, Nancy Cushman, Kerry Colzer, and others said restaurants often operate on very small profits and that processing fees on taxes and gratuities can amount to tens or hundreds of thousands of dollars annually. Ryan Lotz also urged reforms to chargebacks, including refunding chargeback fees when merchants prevail, requiring consumers to contact businesses before disputing charges, and limiting repeat abuse. Commission members pressed witnesses on whether tax and tip amounts could be separated at the point of sale, and several witnesses said current consumer card systems do not transmit that level of detail. Testimony from credit union, banking, and payments representatives largely opposed state-level changes that would carve out taxes or tips from interchange, warning of compliance burdens, higher costs, reduced rewards, and possible effects on fraud protection and access to credit. Alex Verine of America’s Credit Unions and Deb Peters and Keely McEwen of the Electronic Payments Coalition said the payment system is complex, that interchange funds fraud prevention and network infrastructure, and that new state mandates could create operational and legal uncertainty. Dan Swanson argued states have authority to act and pointed to Illinois litigation and federal court rulings, while Julian Morris and Brad Popolado emphasized the benefits of card acceptance, the decline of cash, and the need to consider other payment methods and check fraud as well. Several witnesses discussed international payment systems, instant payments, and QR standards as possible future directions. The chairs and members engaged in extended back-and-forth with witnesses about whether Massachusetts could exempt sales tax from swipe fees, whether surcharging should be revisited, and whether vendor compensation or other targeted relief might be more workable than broad changes to interchange. No votes were taken. At the close of the hearing, the chairs said the commission would hold one additional public hearing date to be determined, after which members would begin developing next steps and a report.