Transcript Highlights:

• tax.
• </c> we exempt fuel tax from sales tax. we exempt fuel tax from sales tax.
• tax.
• tax.
• </c> for the tax. for the tax.

Bills: SF0095 , SF0107 , SF0112

Committee: House Transportation, Highways & Military Affairs

Transcript Highlights:

• I can double... to get 50% off of their property taxes to get 50% off of their property taxes and<00:
• We've also heard in this tax committee a lot of times about tax breaks for big... here uh Mr chair and
• </c> regulations we've also heard in this tax regulations we've also heard in this tax committee<00:21
• </c> 457 which would establish a new tax 457 which would establish a new tax credit<00:29:50.640><c>
• </c><01:04:53.119><c> credit</c><01:04:53.400><c> like</c> tax base we know that a tax credit like tax

Bills: HF1277 , HF812 , HF457 , HF633

Committee: House Taxes

Transcript Highlights:

• So, it's kind of tax on tax.
• </c> Taxes Committee. Taxes Committee.
• So, this So, it's kind of tax on tax.
• </c> tax bill. tax bill.
• </c> wasn't strictly a tax provision in a tax wasn't strictly a tax provision in a tax bill.<00:29:09.880

Transcript Highlights:

• to any tax credit at this time?
• headquarters tax credit program.
• liability if the person receiving the tax credit does not have a tax... ...liability.
• liability if the person receiving the tax credit does not have a tax...
• Someone else who has a tax liability, if the person receiving the tax credit does not have a tax liability

Committee: House Budget

Transcript Highlights:

• credits or any any other property tax credits or any other<00:01:49.200><c> tax</c><00:01:49.560><c>
• The taxes I pay on two ag parcels enjoy the lowest tax burden in our state, along with the...
• The taxes I pay on two ag parcels enjoy the lowest tax burden in our state, along with the...
• local taxing property taxes the local taxing districts<01:12:24.360><c> were</c><01:12:25.320><c> losing
• </c> gross property taxes the amount of tax gross property taxes the amount of tax before<01:21:25.159

Committee: House Taxes

Transcript Highlights:

• This legislation takes advantage of the tax code on low-income housing tax credit tax credits to incentivize
• on profitability, there's a tax on a tax, not a tax.
• on profitability, there's a tax on a tax, not a tax.
• </c><00:23:32.200><c> There</c><00:23:32.440><c> are</c> a tax on a tax, not a tax.
• There are a tax on a tax, not a tax.

Committee: Senate Housing and Homelessness Prevention

Transcript Highlights:

• The Committee on Finance and Tax will now come to order. Stephanie, please call the roll.
• Let's take up Tab 1, SPB 7046, by Finance and Tax relating to taxation.
• SPB 7046 is the Senate tax package. The bill contains the following provisions.
• to state sales tax.
• The direct-to-home satellite service is a declining tax source.

Committee: Senate Finance and Tax

Summary: The Finance and Tax Committee met with a quorum and considered two Senate proposed bills. The first, SPB 7046, was the Senate tax package. It included changes to Live Local property tax exemptions, charter school distributions from voter-approved property tax levies, limits on special assessments for RV parks, revisions to fiscally constrained county funding and eligibility, a permanent sales tax exemption for small propane tanks, a hunting/fishing/camping sales tax holiday, restrictions on governmental net zero policies, and new voting thresholds for certain local millage actions. Staff estimated the bill would reduce general revenue by about $77 million in FY 2026-27 and about $50 million recurring. An amendment making the charter-school distribution change prospective starting July 1, 2026, was adopted. A late-filed amendment by Senator Gaetz on disability tax exemptions was withdrawn for lack of a fiscal analysis. The charter school provision drew the most debate. Senator Jones and Senator Bernard raised concerns that expanding eligibility to charter schools authorized through alternate authorizers could reduce funding available to traditional neighborhood public schools and that the effective date did not give districts enough time to plan. Senator Avila argued the change corrected an omission from earlier legislation and ensured public schools, including charter schools, were treated equally. Several speakers supported the fiscally constrained county provisions, while the Florida Association of Counties urged grandfathering for counties that could currently opt out of the Live Local exemption and asked the committee to review language on millage thresholds and net zero provisions. SPB 7046 was ultimately reported favorably as a committee bill by a roll call vote. The committee then took up SPB 7048, which updates Florida’s conformity to the Internal Revenue Code as of January 1, 2026, and partially decouples from federal changes in the One Big Beautiful Bill Act. The bill addresses federal changes to bonus depreciation, Section 179 expensing, research and experimental expenses, business meals, and business interest deductions, with some provisions phased in or adjusted over time. The Florida Chamber testified in support of continued conformity but expressed concerns about administrative burdens and the bill’s partial decoupling structure. After brief debate, the bill was reported favorably as a committee bill by roll call vote, and the committee then adjourned.

Transcript Highlights:

• Tax stream after stream after tax stream has been eliminated.
• pay the corporate income tax, look at the fact that we phased out the intangibles tax altogether, look
• More than we take in in ad valorem taxes.
• Bartleman: business tax.
• The same logic applies to our school taxes.

Transcript Highlights:

• House Bill 296 is doubling the working families tax credit. HB 296 doubles the tax credit.
• income tax filers.
• And so this doesn't raise taxes. It's based off of the current existing tax.
• tax waiver.
• or tax waiver.

Summary: The committee first heard House Bill 296, which would double New Mexico’s working families tax credit. The sponsor said the bill would increase work incentives, reduce poverty, and could provide families up to about $1,900 more per year, with benefits concentrated among families with children and lower earners. Public testimony from advocacy groups and faith organizations supported the bill. Members asked about foster family eligibility, age eligibility, refundability, and how the credit compared with a prior vetoed proposal. After discussion, a member moved to table the bill, and HB 296 was tabled. The committee then took up the committee substitute for House Bill 77, a tax credit for rehabilitating vacant or blighted buildings into affordable multifamily housing, with at least half of the credit reserved for rural New Mexico. Supporters from housing, business, construction, local government, and advocacy groups said it would expand housing supply, revitalize downtowns and vacant properties, and help rural communities. Members questioned the certification and recertification process, affordability requirements, and the role of the Mortgage Finance Authority. The sponsor asked to roll the bill to Friday so an amendment could be considered, and the committee agreed to roll HB 77 rather than vote on it. House Bill 275, authorizing revenue bonds for Hila Regional Medical Center to replace an aging linear accelerator used for radiation cancer treatment, was heard next. The sponsor and supporters said the equipment is essential for cancer care in southwest New Mexico and that patients would otherwise have to travel long distances for treatment. An amendment extending the bond term from 20 to 30 years was adopted after the New Mexico Finance Authority explained declining tobacco-tax revenues and the need to protect against default risk. The committee then gave HB 275, as amended, a do pass recommendation. Finally, the committee heard House Bill 285, as amended, which clarifies and streamlines the disabled veteran property tax exemption. The sponsor said the bill limits the exemption to a primary residence, clarifies how it applies to multiple owners, and gives veterans more time and clearer procedures to claim or protest the exemption while they await VA certification. County assessors and realtor representatives supported the measure, saying it would reduce administrative confusion and ensure eligible veterans receive the benefit consistently. The committee adopted the bill on a do pass motion. The meeting then adjourned with notice that work would continue on Friday.

Transcript Highlights:

• No new tax up, no new tax down.
• </c> tax distilled Spirits requires a tax tax distilled Spirits requires a tax reduction<00:36:24.640
• up no new tax down uh it is no new tax up no new tax down uh it is for<00:36:40.040><c> clarification
• Again, tax increment financing.
• similar or taxes impose ose a tax similar or taxes similar<00:40:01.599><c> to</c><00:40:02.160><c>

Summary: The committee met on March 11, 2025, with a quorum present and first adopted a committee substitute for Senate Bill 28. The bill would create a framework for using $5 million previously set aside for agricultural economic development through the Kentucky Department of Agriculture, including loan and grant programs. Members asked about changes in the substitute, and the sponsor explained that it revised the board composition to include members with more experience in finance, lending, and economic development. SB 28 was approved 20-0 and reported favorably. The committee then approved Senate Joint Resolution 26, which directs the Department for Medicaid Services to provide the Legislative Research Commission a report on pharmacist pay parity and the cost of allowing independent pharmacists and pharmacies to be reimbursed by Medicaid for services within their scope of practice. The sponsor and Kentucky Pharmacists Association representative described it as a request for information rather than a policy change. The resolution passed 20-0 and was reported favorably. House Bill 741, relating to public water and wastewater systems, was next. The sponsor said the substitute incorporated Kentucky Infrastructure Authority recommendations, clarified best management practices, and allowed storm water inflow and groundwater infiltration reduction projects to be scored more fairly alongside water projects. Members discussed how the bill narrows eligibility to systems most in need and refines the scoring process for the program created last session. HB 741 passed 20-0, was reported favorably, and received a title amendment. The committee also considered House Bill 544, a branch budget bill amendment creating a new SAFE fund for the most recent Eastern Kentucky flood disaster, indexed to the relevant presidential disaster declaration. The bill would allow state money and other funds to support local governments, utilities, school districts, and other eligible recipients for recovery costs, planning, and short-term liquidity, with reimbursement provisions if FEMA or other sources later pay. Members discussed the amount of available funding, the use of prior SAFE fund balances, and the emergency clause. HB 544 passed 20-0, was reported favorably, and a title amendment was adopted. The committee then began House Bill 775, relating to development areas, and adopted PHS 2 and a committee amendment; the sponsor started explaining the bill’s provisions on development areas, tax increment financing, brewers’ electronic filing, distilled spirits property tax language, income tax reduction conditions, tourism development incentives, and other tax-related sections, but the transcript cuts off before final action on the bill.

Transcript Highlights:

• tax.
• </c> tax. We call it the major business tax. tax. We call it the major business tax.
• and sales tax.
• The motor fuels tax, the gas tax, and the motor vehicle usage tax, or basically the sales tax on the
• The motor fuels tax, the gas tax, and the motor vehicle usage tax, or basically the sales tax on the

Summary: The committee first established a quorum, approved the July minutes, and recognized Jennifer Hayes of the Department of State Budget Director for her retirement and long service. Secretary Hicks then presented a review of fiscal year 2025 closeout for the general fund and road fund, explaining that the general fund ended with a $313 million surplus and the road fund with a $61 million surplus. He attributed the general fund result to strong corporate income and LLC tax receipts, investment income, and lower-than-budgeted spending, while noting that individual income tax and sales tax underperformed estimates. He also described how the general fund surplus was allocated, with $62 million used for necessary government expenses and $251 million deposited into the budget reserve trust fund, which remained at historically strong levels. For the road fund, he said the surplus would be deposited into the Department of Highways construction account, and he highlighted record motor vehicle usage tax receipts despite lower motor fuels tax revenue due to a rate decline. Members asked questions about the pass-through entity tax, delayed filing deadlines, THC beverage sales, and income tax collection from undocumented workers. Hicks said the pass-through entity tax remains difficult to model because of timing issues and the first year’s unusual filing pattern, and that staff are still working with the Department of Revenue and other states to improve forecasting. He said the delayed filing deadline likely would not require a major restatement and that any related receipts would still be counted in fiscal 2026. On THC beverages, he said the issue would be considered in the next forecasting cycle. On the undocumented-worker question, he said withholding may capture some of the revenue but referred broader collection efforts to the Department of Revenue. The committee then shifted to an overview of the federal reconciliation act’s potential impact on the next biennial budget, with Hicks and Commissioner Lisa Dennis focusing on Medicaid and SNAP. Hicks said the Congressional Budget Office estimated roughly $900 billion in federal savings over 10 years, driven in part by work or community engagement requirements for the Medicaid expansion population and limits on state-directed payments. He emphasized that CMS still must issue regulations to define how the state-directed payment reductions will be calculated, making the exact fiscal impact uncertain. He referred members to a prior Medicaid Oversight Advisory Board presentation for more detail, and the discussion remained informational with no votes or formal actions taken on the federal changes.

Transcript Highlights:

• The rules are designed to prevent abuse of the tax exemption called tax arbitrage.
• Severance tax bonds are also issued based on severance tax—taxes from severing oil and minerals and other
• Sometimes we have special tax counsel for complicated tax-exempt deals.
• On a tax-exempt basis, our bond counsel also acts as our special tax counsel.
• tax pledges.

Committee: House New Mexico Finance Authority Oversight Committee

Transcript Highlights:

• There is a provider tax that is paid by hospitals. And through that tax, That is paid by hospitals.
• still distributes those taxes to the taxing authorities.
• still distributes those taxes to the taxing authorities.
• Other question I has: Is this a redeemable, or is this a straight tax credit to income tax?
• This is now a refundable tax credit for those that don't have tax liabilities.

Bills: SB101 , SB58 , SB55

Committee: Senate House Appropriations & Finance

Summary: The committee first heard Senate Bill 101, which would repeal the July 1, 2030 sunset on the Health Care Delivery and Access Act and make the hospital provider-tax program permanent. The sponsor, the Health Care Authority secretary, and the New Mexico Hospital Association said the program has generated substantial federal Medicaid matching funds and has supported hospital workforce, quality, and infrastructure investments, especially in rural areas. Members asked why the sunset existed originally and whether federal changes under H.R. 1 would phase the program down; the secretary explained the sunset was meant as a review point, but that federal law now prevents creating a new similar program if this one expires. The committee heard support from hospital and business representatives, no opposition, and voted due pass 7-0. The committee then considered Senate Bill 58, as amended, which extends the property tax abatement period for metropolitan redevelopment areas from a fixed seven years to up to 14 years. The sponsor and Albuquerque redevelopment officials said the change would give local governments more flexibility to structure projects based on financial need, while still preserving current tax payments and encouraging redevelopment of blighted or underused areas. Several supporters, including realtors and the Greater Albuquerque Chamber, argued the longer window would improve certainty for developers and help spur housing and other reinvestment. Some members raised concerns about lost revenue for schools and whether the tool could be overused, but were told the program applies only in designated redevelopment areas and is intended to leverage future higher assessments. The committee adopted the amendment and then passed the bill as amended 7-0. Finally, the committee heard Senate Bill 55, which increases New Mexico’s state solar tax credit from 10% to 30% after the federal credit was reduced, and raises the individual cap from $6,000 to $15,000 while keeping the overall annual program cap at $30 million. The sponsor and numerous solar industry, business, and clean-energy advocates said the change is needed to prevent layoffs, stabilize the rooftop solar market, support local jobs, and preserve grid and affordability benefits for customers. Members asked about permitting, certification, consumer protection, and whether battery storage was included; the sponsor said the bill covers rooftop solar only, the credit is refundable, and EMNRD certifies systems before credits are issued. The committee heard broad support, no opposition, and voted due pass 7-0 before adjourning.

Transcript Highlights:

• Millions of Americans already benefited from no tax on tips, no tax on overtime, and no tax on Social
• <c> on</c><02:08:46.239><c> social</c> no tax on overtime, and no tax on social no tax on overtime, and
• <c> and</c> committing tax fraud, tax evasion, and committing tax fraud, tax evasion, and other<03:38
• tax purposes.
• </c> says that uh settlement is not taxed. says that uh settlement is not taxed.

Transcript Highlights:

• It allows tax credits claimed under the state's low-income housing tax credit program to be used to offset
• taxes imposed by the state Transient Accommodations Tax law.
• It specifies that tax credits amount applies to the state transient accommodations taxes be limited to
• taxes imposed by the state Transient Accommodations Tax law.
• It specifies that tax credits amount applies to the state transient accommodations taxes be limited to

Summary: The joint hearing of the Committee on Tourism and the Committee on Economic Development and Technology met on February 11, 2025, to hear House Bill 96 and House Bill 106. HB 96 would allow low-income housing tax credits to offset state transient accommodations taxes, limit the credit to taxes imposed in the same county as the qualified building, and make Act 129 permanent. The Department of Taxation opposed the bill, saying it would be difficult to administer, would complicate the tax system, and could be susceptible to abuse; it also noted the credit would benefit the hotel owner even though the tax is paid by the customer. The Tax Foundation of Hawaii raised consumer protection concerns. No other testimony was offered, and the chair later recommended deferring HB 96 for further work with the Department of Taxation and the committee. HB 106 would authorize the Agribusiness Development Corporation to financially support farming businesses engaged in agricultural tourism and expand the definition of enterprise accordingly. The Agribusiness Development Corporation testified in support, saying farmers requested the change, it would diversify income, and it would provide technical and financial support. The Hawaii Farm Bureau also supported the measure, and the chair noted eight pieces of testimony in support and one in opposition. No questions were raised, and the chair recommended passing the bill as is. The committee voted on HB 106, with the chair and vice chair voting aye, along with Representatives Holt, Hussey, Ilagan, and Todd; Representative Matsumoto was excused. The chair’s recommendation to pass HB 106 was adopted, and the hearing was adjourned.

Transcript Highlights:

• They would send it to us, and then we'd apply a 100% tax through a tax order or tax adjustment.
• </c><00:05:17.320><c> The</c><00:05:17.400><c> penalty</c> tax order or tax adjustment.
• The penalty tax order or tax adjustment.
• </c> able to assess that that tax right away. able to assess that that tax right away.
• </c> all of the taxes. all of the taxes. &gt;&gt; Representative<00:13:03.520><c> Smith.

Summary: The committee heard House File 5040, the “Take It Back Act,” presented by Representative Anderson. The bill, as amended by the DE1 amendment, would impose a 100% tax on amounts a person is convicted of stealing through fraud against Minnesota public programs, with the stated goal of recovering taxpayer dollars. Anderson said the measure is bipartisan, has many co-authors, and was developed with the Department of Revenue to ensure it could be administered without undue burden. Joanna Bears of the Department of Revenue testified in support of the bill’s administration and thanked the authors for working with the department. She explained that the bill has two parts: a conviction-based tax that would be assessed after a fraud conviction, and a penalty piece tied to fraud identified through the department’s existing review and tip processes. In response to member questions, Bears said the department already receives tips and information from other agencies, reviews them carefully, and would use the bill as another tool to address public fund fraud. Members also asked about timing, restitution, and whether the bill could be misused by bad-faith tips; Anderson and Bears said the conviction-based portion is not tip-driven and that the bill is intended to be administered legally and efficiently. Representative Smith asked about the relationship to the Fraud Restitution Fund and whether the bill would apply to private-sector tax fraud. Bears said restitution would likely be collected first depending on statutory priority, and clarified that the new 100% penalty would apply only to public fund fraud, not general tax fraud, and only to the fraudulent public-fund amount. Representative Witty and others expressed support for the bill as a tool to combat fraud. At the end of the hearing, Representative Anderson renewed her motion to lay over House File 5040, as amended, for possible inclusion in the omnibus tax bill, and the chair indicated that was the plan.

Transcript Highlights:

• tax, and tab fees.
• We can index the current $75 annual EV tax to the gas tax.
• </c> current $75 annual EV tax to gas tax. current $75 annual EV tax to gas tax.
• First, tax equity.
• This is the tax committee, so I won't talk extensively on the provisions unrelated to tax.

Bills: HF2438

Committee: House Taxes

Transcript Highlights:

• There are winners and losers on every tax relief.
• We do have the best property tax system in the country.
• And now targeted tax relief that your constituents understand.
• taxes equals the levy.
• And for the over-65s, they've already paid a lifetime of taxes.

Bills: SB23 , SJR85 , SB 23

Committee: Senate Local Government

Summary: The Senate Committee on Local Government heard testimony on Senate Bill 23 and its companion constitutional amendment, Senate Joint Resolution 85, both by Senator Bettencourt. The bills would increase the additional homestead exemption for elderly and disabled homeowners from $10,000 to $60,000, which proponents said would significantly reduce property taxes and help seniors and disabled Texans age in place. Bettencourt and supporters described the measure as part of a broader property tax relief package, estimating combined savings of about $950 for over-65 and disabled homeowners when paired with other recent homestead exemption changes. Witnesses largely supported the proposal. Testimony in favor came from a lawyer, a private citizen, Texas Realtors, the Texas Silver-Haired Legislature, and the Texas Association of Builders, all emphasizing relief for fixed-income seniors, housing stability, and the ability to remain in their homes. Several witnesses noted rising property taxes, medical costs, and the challenges seniors face in moving or affording home modifications. One witness from Every Texan said a flat homestead exemption is the most equitable way to cut property taxes, but argued against additional tax cuts generally, favoring a circuit-breaker approach and warning that permanent tax cuts could reduce funding for schools and other needs. The committee also discussed data showing many over-65 homeowners already pay no school property taxes in some counties and that the proposed changes would increase that share. After closing public testimony, the committee voted on the measures. Senate Bill 23 was reported favorably to the full Senate by a 7-0 vote, and S.J.R. 85 was also reported favorably by a 7-0 vote. The transcript also shows Senate Bill 898 being laid out and passed unanimously earlier in the meeting, with a recommendation for the local and uncontested calendar.

Transcript Highlights:

• The post-production tax credit is not tied to the $750 million budget for the motion picture tax credit
• I don't see this tax credit as a liability. I see this tax credit as an investment.
• definition of tax elsewhere.
• revoke our state tax-exempt status.
• revoke our state tax exempt status.

Summary: The committee heard and advanced several tax-related bills, beginning with AB 760, which would exempt settlement payments tied to the Garden Grove chemical incident from California income tax. The author and a school district trustee described evacuations, school closures, and losses to residents, businesses, students, and staff, arguing the payments should make victims whole rather than be taxed. There was support from the Orange County Board of Supervisors, no opposition, and the bill passed 3-0 to Appropriations, with committee amendments accepted. Members then heard AB 2319, creating a California post-production tax credit for film and television work done in-state, even when principal photography occurred elsewhere or the project did not receive the existing film credit. The author and supporters from the Motion Picture Editors Guild, California Post Alliance, and others said post-production jobs and facilities are leaving California and that the bill would help retain high-wage work; opponents were not present. The committee members generally supported the measure, and it passed 3-0 to Appropriations. AB 2186 followed, excluding future reparations benefits for descendants of formerly enslaved people from state income tax. The author and NAACP California-Hawaii State Conference said taxing such benefits would undermine reparative justice; there was no opposition, and the bill passed 3-0. The committee also heard AB 762, which would ban the sale of disposable nicotine vapes and add enforcement tools. Supporters, including waste, recycling, local government, and public health groups, said disposable vapes create fire hazards, waste problems, and costs for local agencies; opponents argued the bill would mainly eliminate the legal market while leaving illicit products untouched and urged stronger enforcement instead. The author accepted committee amendments adding CDTFA enforcement, but the bill was not voted on because a motion was pending and members were absent. Later, AB 1519, AB 2172, AB 2222, AB 1793, AB 2089, and AB 1265 were heard and each received support from committee members and passed 2-0 or 3-0 to Appropriations, with amendments accepted where noted. AB 1519 clarified that the 20-year tax collection statute of limitations should not be reset by later fees or penalties; AB 2172 would let large counties use a single assessment appeals commissioner for complex property tax appeals; AB 2222 would create a temporary tax credit for local news organizations to retain and hire journalists; AB 1793 would authorize symmetrical cash rounding to the nearest nickel after the federal penny phaseout; AB 2089 would streamline the welfare exemption filing process for affordable housing; and AB 1265 would extend and revise the historic building tax credit to encourage adaptive reuse for housing and mixed-use projects.

Transcript Highlights:

• And, of course, individual income tax.
• directly to the tax dollars.
• More of a volume-based tax than a value-based tax like we have on the oil side.
• So, of course, the majority comes from sales tax, expecting some continued growth in sales tax, expecting
• It is both state funding, local property taxes, and in lieu of property taxes.

Summary: The Budget Section approved the March 18 minutes and received an OMB update showing the general fund is still ahead of the budgeted starting point, but revenues through May are now about $76 million below the legislative forecast, driven mainly by individual income tax and sales tax shortfalls. OMB also reported the budget stabilization fund is above its cap, meaning a transfer to the general fund is expected, and reviewed oil price/production assumptions, noting continued volatility. Members asked about the income tax netting process, the sales tax decline, oil price discounts/premiums, natural gas taxation, and when the executive branch would present its revenue forecast. The committee then acted on several Emergency Commission requests. It approved, as a group, requests for federal mine reclamation funds for the Public Service Commission, an additional criminal investigator FTE and funding for the Attorney General’s office, and a DPI transfer for bridge software costs. It separately approved DPI request 2164 for $500,000 to support the food vendor program after debate over whether the program’s savings were known and whether the money was simply a pass-through. OMB also reported on federal grants, fiscal irregularities, tobacco settlement proceeds, budget guidelines for agencies, FTE pool usage, vacancy savings, and the DAPL settlement, noting the settlement funds had been deposited and that a deficiency appropriation may be needed later to cover remaining accrued interest. Tax Commissioner Brian Kroshus presented on the primary residence credit program, saying participation has grown sharply and that the current biennium will likely need about $431 million, roughly $22 million above the appropriation. He explained how the credit interacts with homestead and disabled veteran benefits, how the 3% property tax cap works, and why county valuations and mill rates vary. The committee also received a Legacy Fund/Budget Stabilization Fund report showing strong returns, and DOT Director Ron Henke received approval for two Flex Fund highway projects on ND 49 and ND 31. Henke also explained remaining Highway 85 funding and said the department is exploring uses for leftover state dollars. Finally, the Department of Mineral Resources reported on abandoned well plugging and site restoration, noting North Dakota remains in relatively strong shape compared with other states, and DPI began a presentation on gap funding tied to the 3% levy cap, reporting 24 districts received $1.8 million in the first year and projecting higher future needs.