Transcript Highlights:

• Property tax.
• taxes.
• She added that the existing statute already lists the local tax codes from which they are exempt.
• She added that there is already local tax from which they are exempt because it is spelled out in statute
• But this just cleans up that language because there's been new taxes that have been added since these

Committee: House Special Committee on Tax Reform

Transcript Highlights:

• </c> one of my members uh on the sales tax one of my members uh on the sales tax and<00:08:02.599><c>
• </c> so whatever's not paid in in sales tax so whatever's not paid in in sales tax here<00:08:45.080>
• </c> and impacted by tax and impacted by tax increment<00:41:14.000><c> um</c><00:41:14.160><c> they<
• It is not because of tax increment financing that we have not had a tax bill.
• It is not because of tax increment financing that we have not had a tax bill.

Committee: Senate Taxes

Transcript Highlights:

• The large one in the House was relative to the business tax, real estate transfer tax, and tobacco tax
• The large one in the House was relative to the business tax, real estate transfer tax, and tobacco tax
• The large one in the House was relative to the business tax, real estate transfer tax, and tobacco tax
• tax.
• </c> business taxes. business taxes.

Summary: The Legislative Budget Assistant staff presented an overview of the Senate changes to the House-passed budget, focusing on revenue estimates, appropriations, and ending balances across the general fund and education trust fund. The presentation emphasized that the Senate’s budget reflected higher revenue assumptions than the House, driven in part by updated April revenue figures, changes to business, tobacco, and real estate transfer tax splits, and different assumptions about video lottery terminal revenue. The Senate also adjusted lapse estimates upward, especially for HHS, after receiving updated information that lapses could be much larger than originally assumed. The presenter walked through the major differences in the surplus statements for fiscal years 2025 through 2027. Compared with the House, the Senate budget generally showed higher revenues, lower or different appropriations in some areas, and larger balances carried forward, including a larger education trust fund balance and a different rainy day fund transfer. The Senate’s approach also changed several policy assumptions, such as maintaining liquor revenue dedication, removing the House’s meals-and-rooms distribution cap, changing the treatment of unique revenue, and altering the process for meeting a targeted revenue amount by giving the governor more flexibility. On the appropriations side, the Senate removed or modified several House reductions and added funding or adjustments in areas including the judicial branch, corrections, HHS, the Human Rights Commission, and certain settlement costs. The presenter also highlighted Senate changes in House Bill 2 and related budget provisions, including a new arts tax credit, a nursing home bed fee, changes to Medicaid premium assumptions, and differences in how motor vehicle inspection repeal and BLT-related revenue are handled. No votes were taken in the portion shown; the discussion was informational and comparative, aimed at explaining the Senate budget changes before conference committee negotiations.

Transcript Highlights:

• And they're not adding an additional tax on the residents of the county.
• They're adding the tax to those who are coming. ...adding an additional tax on the residents of the county
• They're adding the tax to those who are coming in to visit the county.
• They're adding the tax to those who are coming. adding an additional tax on the residents of the county
• They're adding the tax to those who are coming in to visit the county.

Bills: HB 1039 , HB2289 , HB2370 , HB2404 , HB3066 , HB3076 , HB3117 , HB3118 , HB3169 , HB3178 , HB3179 , HB3182 , HB3196 , HB3241 , HB3377 , HB3500 , HB3567 , HB3715 , HB3954 , HB4098 , HB4109 , HB4222 , HB4226 , HB4412 , HB4659 , HB4682 , HB4683 , HB4755 , HB4926 , HB5165 , HB5562 , HB5596

Committee: House Ways & Means

Summary: The committee heard a long series of bills, most of them expanding or adjusting hotel occupancy tax or qualified hotel project authority for specific local governments. Measures discussed included HB 2404 for Childress County; HB 3066 for Allen’s Kalahari resort project; HB 4682 for Plano; HB 4683 for Anna; HB 3076 creating a project finance zone in Frisco; HB 3567 for Wichita County; HB 3715 for McAllen; HB 1039 for Alpine; HB 3182 for Burleson; HB 4926 for Grimes County; HB 4222 for Victoria County; HB 3377 for Katy; HB 4659 for Addison; HB 3241 for Georgetown; HB 4098 for Taylor; HB 3178 for Kerr County; HB 3179 for Mason County; HB 2289 for New Braunfels; HB 4412 for Kermit; HB 5165 for Monahans; HB 3500 for Bastrop; and HB 3169 for Carrollton. In each case, authors and local officials described tourism, convention, hotel, airport, or mixed-use development needs and argued the bills would help attract visitors, investment, and jobs. One non-hotel-tax bill, HB 4226, would exempt Texas food banks from sales tax on vehicle purchases and rentals, with testimony emphasizing the scale of food bank operations and the savings’ impact on meal delivery and disaster response. Testimony was generally supportive from city officials, economic development representatives, and industry groups such as the Texas Hotel and Lodging Association. Several witnesses described major private projects, including Kalahari in Allen, a proposed hotel and conference center in Addison, a mixed-use project in Georgetown, and a large development tied to Samsung growth in Taylor. For HB 4226, food bank representatives said the bill would help them purchase refrigerated trucks and other delivery vehicles, while an opponent questioned the fiscal note and the scope of the exemption. HB 4926 drew opposition from Camp Allen, whose representative argued a new county hotel tax would raise costs for guests and could hurt the retreat center’s operations. HB 3178 also drew an objection from a Kerr County resident who argued the tax would grow county government and pointed to event center losses, though the author said the revenue would support tourism-related county uses. The committee took no final votes on the bills in this transcript. After each bill was laid out and testimony concluded, the chair repeatedly asked whether there was objection to leaving the bill pending; in each instance, no objection was heard, and the bills were left pending. Several committee substitutes were offered and then withdrawn or noted as conforming drafts, but no bill was reported out or otherwise acted on beyond being left pending.

Transcript Highlights:

• However, when it comes to putting tax credits, if you added up all the tax credits in this building of
• Now we're talking about adding user taxes and sales taxes on them, and so we're just making the whole
• It's not a tax deduction. It's a tax credit.
• And we keep adding tax credit upon tax credit, upon tax credit, upon tax credit, tax giveaway.
• as a tax credit and you report it as a tax credit.

Committee: House Ways and Means

Summary: The committee first heard Senate Bill 994, which would extend taxpayer protection from penalties and interest when a taxpayer claims a tax credit that has reached its cap and then receives a Department of Revenue notice for underpayment. Senator Henderson said the bill mirrors existing language for the Champion for Children tax credit, would require payment within 60 days to avoid penalties and interest, and includes technical fixes for the beginning farmer tax credit and school-district reporting. The bill drew support from Missouri Soybean, Feeding Missouri, Missouri Farm Bureau, and Missouri Corn Growers, while the State Public Advocate initially objected to tax credits generally but said he would support the bill once he understood it did not create a new credit. No vote was taken. The committee then heard House Bill 1743, which would bar courts from depriving individuals of property for failure to pay property taxes, with the sponsor arguing that tax sales disproportionately harm low-income and elderly homeowners. Members raised concerns about weakening tax collection and the impact on local taxing districts, while the sponsor said liens and wage garnishment would still be available and that the bill was aimed at protecting homeownership. The Missouri County Collector’s Association opposed the bill, saying tax sales are rare, payment plans are common, and redemption periods already provide protection. The bill was left at hearing with no action. House Bill 2461, presented with nearly identical companion language from another member, would extend and expand Missouri’s donated food tax credit through 2032, raise the cap for food pantries, soup kitchens, and homeless shelters, and create a separate bucket for food banks. Sponsors and Feeding Missouri said the credit is expiring, demand for food assistance is high, and food banks need access to the program to leverage corporate donations; they also discussed a possible amendment to preserve eligibility if the individual income tax is eliminated. The State Public Advocate opposed the bill as another tax credit cost, but the Department of Revenue said the bill would streamline administration and had no fiscal impact. The committee also heard House Bill 3405, which would reclassify the SALT parity pass-through entity provision as a deduction rather than a tax credit for reporting purposes; the sponsor and Department of Revenue said this would improve clarity and reduce administrative burden without changing revenue, and business groups supported it. No votes were taken on any of the bills.

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
• Again by the individual income tax and the taxes, license, and fees level, individual income tax and
• the corporate income 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 December 11, 2025 minutes. Members then recognized the FYI end-of-balance of $577,077,871 as non-recurring revenue. The main business was revising the state revenue forecast for FY 2026, with the Division of Administration recommending a reduction of about $113 million, driven primarily by weaker individual income tax collections, softer general sales tax receipts, and a substantial cut to corporate income tax forecasts. The Legislative Fiscal Office presented a somewhat different but still cautious outlook, and members discussed withholding rates, refund growth, corporate collections, and the effects of the franchise tax repeal and tax reform changes. After questions to the Department of Revenue about collections, refunds, enforcement, and settlements, the conference adopted the Division of Administration’s FY 2026 forecast. The conference then reviewed the FY 2027 recurring forecast. The Division of Administration again recommended a reduction, this time about $104 million, citing continued caution on individual income and corporate taxes, while the Legislative Fiscal Office projected a net increase of about $127 million, largely from sales tax, severance, royalties, vehicle sales tax, and other revenue streams. Members discussed the practical budget impact of the revised forecasts, including the need to reduce spending and the difficulty of funding a possible teacher stipend if a constitutional amendment fails. The FY 2027 recurring forecast was adopted. Members also adopted the long-range forecast, the proposed inflation rates for the Millennium Trust and parish severance allocation, and the incentive expenditure forecast. The incentive discussion noted that reported incentive costs reduce available revenue before appropriations, and members raised the possibility of reviewing or capping such incentives. The Treasurer’s Office then reported that the General Fund cash balance was $404.1 million as of May 5, 2026, and the interfund borrowing base was about $9.18 billion, with cash positions generally similar to the prior year. The meeting ended with a note that another REC meeting might be needed after the May 16 election, followed by adjournment.

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:

• </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:

• 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:

• 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:

• </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:

• 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:

• 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:

• 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:

• 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:

• 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:

• 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.