Transcript Highlights:

• . that would add lifeguards as an approved use for TDT revenues.
• And as a mayor, I removed the fire fee, but we found another source of revenue.
• They don't take funding from general revenues from their cities.
• And again, spending a lot of money and we're getting tax revenue because of that.
• But it's not revenue that the locals can directly use themselves.

Summary: The Ways and Means Committee met on April 16, 2025, with one agenda item: PCB WMC-2502, the committee’s tax package. Chair Duggan presented the bill as a broad tax measure covering sales tax, tourist development taxes, ad valorem/VAB procedures, affordable housing property tax changes, tangible personal property, special assessments, fuel taxes, communication services taxes, corporate income tax updates, pari-mutuel/card room taxes, local incentives, and a redistribution of horse industry trust fund money. He also noted emergency rulemaking authority for the Department of Revenue and estimated a recurring state impact of $34.6 million in FY 2025-26. Members questioned several provisions, including the aviation fuel tax repeal, the delay of the natural gas fuel tax, the extension of the local communication services tax freeze, the charitable trust corporate income tax clarification, the reduction in card room taxes, and the affordable housing changes tied to the Live Local Act. Public testimony included support from airlines, UPS, child care management, and others, while the Florida Restaurant and Lodging Association opposed the lifeguard/TDT change, the Florida Association of Counties and Florida League of Cities opposed the missing-middle exemption changes, and local government representatives raised concerns about revenue impacts and the loss of local opt-out authority. The committee also adopted Amendment 1 by Representative Rizzo, which limits certain special assessments on RV parks when based on square footage. During debate, members split on some provisions but generally supported the package, with comments focused on aviation competitiveness, preschool assessment relief, lifeguard funding, affordable housing, and the horse industry funding shift. Representative Duggan closed by emphasizing that the bill was only the beginning of the process and would continue through conference and floor consideration. The committee then voted 16-1 to report PCB WMC-2502 favorably, with Representative Alvarez voting no.

Transcript Highlights:

• again that you have seen the revenue again that you have seen the revenue estimate<00:25:40.679>
• <00:36:19.920> any Minnesota Department of Revenue any Minnesota Department of Revenue any
• <00:48:18.960> um on the um uh Revenue um on the um uh Revenue um analysis<00:48:21.280>
• <01:37:47.639> Revenue<01:37:48.119> notices department of revenues Revenue notices
• Senator Klein when I look at the revenue Senator Klein when I look at the revenue notices<01:43:

Keywords: 1187, senate, all

Transcript Highlights:

• And with that, we have the chairman of revenue to present it. Come on up, Representative Lock.
• <00:04:41.440> addition tax revenue addition tax revenue addition uh<00:04:43.400> from
• shown as an absolute revenue decrease in lieu of estimating the school district recapture revenue decrease
• out of revenue this last year. out of revenue this last year.
• I'm with the Department of Revenue. I'm the administrator of the property tax division.

Bills: SF0025, SF0027, SF0043, SF0066

Keywords: landowner licenses, hunting, wildlife management, quota hunt areas, game and fish commission, game management, hunting regulations, black bear, tracking dogs, wildlife conservation, conservation, contracting, supervisor, funding, districts, hunting licenses, donated licenses, life-threatening illness, vision impairment, nonprofit organizations

Transcript Highlights:

• over our most recent revenue estimate. over our most recent revenue estimate.
• reflects their revenue estimates. reflects their revenue estimates.
• revenue sharing with cities and towns. revenue sharing with cities and towns.
• This is a revenue sharing item. Revenue sharing is separate from meals and rooms.
• something on the revenue by then. something on the revenue by then.

Keywords: 928, house, all

Summary: The committee of conference on HB 1 and HB 2 met to review revenue estimates and begin working through a side-by-side of the budget. New Hampshire Lottery Director Charlie McIntyre testified that lottery revenues are outperforming prior estimates, projecting a $27 million return to the state this year, up $7 million, and $200 million per year in the next biennium, up $6.5 million per year. He attributed the increase to stronger scratch ticket sales, no negative impact from Massachusetts sports betting, and overall better performance. Members questioned the assumptions behind the higher numbers, including the proposed $50 scratch tickets, the effect of inflation, and whether the projections were conservative enough. McIntyre said the $50 ticket could produce modest growth and that the estimates were intentionally cautious. The discussion also covered gaming revenue assumptions for historical horse racing and video lottery terminals, with McIntyre saying the state market is not yet saturated and that future conversions from HHR to VLTs should be net positive for the state. Members also discussed differences between House and Senate revenue numbers for gaming, including machine counts, daily revenue assumptions, and the tax split. The Senate version used higher machine counts and a 31.25% tax rate, with a quarter-point reserved for responsible gaming and the remainder split between charities and the state. The House had used a 30% rate with a different distribution. McIntyre and committee members also reviewed House Bill 2 items affecting Kino hours and local option games of chance, with McIntyre explaining that the bill would expand playing hours and shift towns to an opt-out model. No votes were taken during the lottery discussion, but the committee indicated it would continue refining the revenue model and circulate the spreadsheet used for the estimates. The committee then moved through the HB 1 detail change sheet, accepting several Senate positions and holding others for later. It agreed to a zero-cost realignment in the Department of Safety moving the international fuel tax agreement function from administration to motor vehicles, and it restored eight passenger motor vehicle inspection positions for later discussion in HB 2. The Department of Corrections reorganization was set aside for a later, more detailed discussion. The committee also accepted no-change positions for the Department of Employment Security and agreed to a technical footnote fix in the Judicial Council section. It discussed a new HB 2 item moving contract counsel for involuntary mental health admissions from the judicial branch to the Judicial Council, funded at $100,000 per year, and noted that the public defender funding issue would be revisited when the overall budget picture is clearer. The meeting ended with the committee continuing its review of the remaining pages of the detail change sheet.

Transcript Highlights:

• That's a 20% decrease in income tax revenue, and you combine that with...
• A lot of our day job is working on the operating side of the budget, watching revenues come in.
• share revenue.
• And the fair share revenue, we're a few years in now, but it's been quite robust.
• registry, and you have recourse now to fair share revenue.

Keywords: 995, all

Summary: The committee heard testimony on House Bill 4987, the administration’s transportation bond bill centered on Chapter 90 roadway funding and related capital programs. Administration officials described the bill as a roughly $5.5 billion package that would continue $300 million per year for Chapter 90 over four years, with part of the funding distributed by the traditional formula and an additional $100 million based solely on road miles to better support rural and smaller communities. They also highlighted authorizations for municipal pavement work, Shared Streets and Spaces grants, accelerated bridge and pavement repairs, MBTA rail modernization and reliability, housing-related transportation improvements, and a new DCR-focused PRISM program for parkways and related infrastructure. Officials emphasized that the bill is financed through the Commonwealth Transportation Fund and Fair Share revenues, and said it would help municipalities plan more predictably, speed project delivery, and support housing, safety, and climate goals. Committee members and witnesses discussed the bill’s broader scope beyond traditional Chapter 90, especially the $200 million for transportation projects that support housing development and the $200 million for MBTA modernization and rail reliability. Members asked about the rationale for a four-year authorization amid fiscal uncertainty, federal funding volatility, and the status of commuter rail electrification. Administration officials responded that the capital authorization is backed by dedicated transportation revenues rather than the operating budget, and said multi-year certainty helps cities and towns make better long-term repair decisions. They also said the MBTA’s rail modernization funds would support locomotive procurements, including battery-electric and Tier 4 diesel locomotives, as part of a longer-term regional rail and electrification strategy. Municipal officials and regional advocates strongly supported the bill. The Massachusetts Municipal Association, along with town and city officials from Sherborn, Conway, and Yarmouth, said the increased Chapter 90 funding and road-mile-based distribution are especially important for small and rural communities with limited local revenue capacity, and that multi-year funding would let them bundle projects, bid at better prices, and address backlogs more proactively. A Better City and MAPC also supported the bill but urged the committee to treat it like a traditional bond bill by adding policy provisions and considering new transportation revenue tools, such as TNC fee changes, road pricing, parking taxes, and other mechanisms. The committee took no vote during the hearing and adjourned after testimony concluded.

Transcript Highlights:

• We're ready to get started with House Taxation and Revenue. Might we go to roll call please?
• I'm Stephanie Chardon Clark, Secretary of the Taxation and Revenue Department.
• On that part, I really want to thank the Secretary of Tax and Revenue.
• We have an IRS, the Internal Revenue Service, right?
• The decoupling that we did doesn't get all of that revenue maintained.

Bills: SB240

Keywords: capital outlay, capital projects, severance tax bonds, general fund appropriations, supplemental severance tax bonds, UNM School of Medicine, University of New Mexico, infrastructure, state buildings, courts, schools, higher education, road improvements, water and wastewater, tribal infrastructure, tribal projects, public safety, housing, emergency services, bonding

Transcript Highlights:

• generate revenue.
• generate revenue. uh with respect to generating our own uh with respect to generating our own Revenue
• <00:27:36.279> when<00:27:36.440> you potential Revenue when you potential Revenue
• generating some kind of Market Revenue generating some kind of Market Revenue so<00:27:45.159>
• <00:29:40.360> is annual loss in revenue is annual loss in revenue is about2<00:29:42.240>

Keywords: 912, senate, all

Summary: The joint hearing focused primarily on Senate Bill 1409, which would cap county user fees charged to Department of Hawaiian Home Lands beneficiaries. Department of Hawaiian Home Lands supported the measure, arguing it would reduce monthly housing-related costs for lower-income beneficiaries and help make homesteading more affordable. Several testifiers, including the Tax Foundation of Hawaii and some individuals, also submitted comments or support. County and city water and sewer agencies, including the County of Kauai Department of Water, the City and County of Honolulu Department of Facility Maintenance, the Honolulu Board of Water Supply, and the City and County Department of Environmental Services, strongly opposed the bill, saying it would shift substantial costs to other ratepayers, create lost revenue, and could force fee increases for everyone else. They also raised concerns about the bill’s cap structure and potential misuse, while noting their systems are funded by user fees rather than taxes. During committee discussion, Honolulu Board of Water Supply officials estimated about 4,500 DHHL customers on Oʻahu and projected lost revenue of roughly $30 million to $36 million over five years, with larger cumulative impacts over time; they said any waiver would be absorbed by other customers. The County of Hawaiʻi representative estimated nearly 2,000 DHHL customers on the Big Island and about $2.4 million in annual lost revenue. DHHL responded that it is pursuing revenue-generating projects on unused lands, but members questioned whether the department should do more to generate its own revenue and suggested looking at other affordability mechanisms, including market rent on commercial properties or a similar cap on other beneficiary fees. After hearing the testimony and discussion, the committee chair announced the recommendation to defer SB 1409 indefinitely, and the Committee on Energy and Intergovernmental Affairs agreed with that decision. The hearing then moved to Senate Bill 1408, a housekeeping measure. DHHL testified in support, saying the bill was part of an effort to lower housing costs through a modular manufacturing approach. DHHL described plans to use an unused hangar at Kalaeloa for a potential modular housing manufacturing plant, including discussions with the University of Hawaiʻi and a Denver-based company, and said it was also exploring a pilot project with Habitat for Humanity on Maui. No vote or final action on SB 1408 was taken in the portion of the transcript provided.

Transcript Highlights:

• We're also part of the Consensus Revenue Estimating Group that is presenting a consensus revenue. new
• That is now a permanent revenue reduction for the general fund.
• So that's already built into the revenue estimate. Um, high level.
• The Consensus Revenue Estimating Group (CREG) is looking at this.
• I'm Chief Legal Counsel and Director of the New Mexico Revenue Department.

Transcript Highlights:

• distributions of beverage tax revenues.
• know how much revenue it is until the race is held.
• don't know how much revenue it is until the race is held.
• We permanently redirected this excise tax revenue to that purpose.
• A key... ...including $7 billion in unallocated general revenue.

Summary: The House convened on the final day of session, observed a moment of silence for the Minnesota House Speaker Melissa Hortman and her husband, and for Representative Rosenwald’s father, then swore in and seated new members Boyles and Hodgers. The Speaker also outlined the chamber’s end-of-session priorities, including action on the budget and related conforming bills. The House then took up H.J.R. 5019, a constitutional amendment to expand Florida’s budget stabilization fund by raising the cap, requiring annual transfers, and allowing withdrawals for critical state needs. After sponsor explanations and questions about what would qualify as a critical need and how the fund might respond to possible federal funding cuts, the House adopted an amendment that added more flexibility for suspending transfers and withdrawals. The joint resolution then passed on final passage. Members next considered HB 7031, the tax package conference report. The bill repeals the business rent tax and aviation fuel tax, delays the natural gas fuel tax, creates or extends several sales tax exemptions and holidays, and makes changes affecting property taxes, local taxes, pari-mutuel taxes, and revenue distributions. Debate focused heavily on the new permanent exemption for ammunition and hunting-related items, the elimination of recurring housing trust fund and transit-related distributions, and the shift of some funding from recurring to nonrecurring status. Supporters argued the package provides tax relief and preserves annual budget flexibility, while opponents criticized the ammunition exemption and the reductions in recurring housing and transit support. The conference report was adopted and the bill passed. The House then passed HB 5017, which creates a debt reduction program funded by a recurring transfer from general revenue to retire state bonds early, and HB 5015, the state group insurance conforming bill, which directs DMS to develop a formulary management plan and codifies the administrative health insurance assessment. Finally, the chamber began explanation and questions on the General Appropriations Act conference report for fiscal year 2025-26, described as a $115.1 billion budget that is down from the current year and includes more than $12 billion in reserves. Subcommittee chairs summarized major budget areas, including K-12 education, health care, transportation and economic development, agriculture and natural resources, higher education, state administration, justice, and information technology, highlighting funding for school choice, Medicaid, housing, transportation infrastructure, Everglades restoration, workforce programs, cybersecurity, and technology modernization.

Transcript Highlights:

• <00:03:06.239> um is from the Department of Revenue um is from the Department of Revenue um
• <00:04:36.240> to up some of the uh decline in Revenue to up some of the uh decline in Revenue
• <00:05:21.840> uh before with the Department of Revenue uh before with the Department of Revenue
• What we really have been seeking is ongoing revenue that we can count on.
• <00:29:05.559> that with that will give us the revenue that with that will give us the revenue

Keywords: 1183, house

Summary: House File 5 was heard in the Transportation Committee and moved by the author, Representative Jim Joy, to be referred to the Tax Committee. Joy described the bill as a package to make Minnesota more affordable by fully eliminating the Social Security tax subtraction, ending the motor fuels tax indexing, repealing the retail delivery fee, and studying vehicle registration/license taxes compared with neighboring states. Committee fiscal staff explained the bill’s fiscal effects across the general fund, highway user tax distribution fund, transportation advancement account, and metro county sales tax allocations, including that the delivery fee repeal would reduce Transportation Advancement Account revenue and that the bill would shift some revenue sources to offset losses. Several stakeholders testified. The Minnesota Grocers Association strongly supported repealing the retail delivery fee, arguing it is costly and complex for retailers to administer, especially small businesses, and that the costs are ultimately passed on to consumers. The Minnesota Propane Association also supported repeal, saying the fee is burdensome for propane businesses, that only a small share of deliveries are actually subject to it, and that compliance costs can exceed the fee revenue collected. Fiscal staff noted that delivery fee revenue forecasts have fallen below earlier projections, and explained that the fee is imposed on sellers with several exemptions, including a $100 transaction threshold and exemptions for some sales such as bars, restaurants, nonprofits, and certain small businesses. Opposition came from local government groups. The League of Minnesota Cities said it supported the Transportation Advancement Account and its 2023 funding sources, including the delivery fee and motor vehicle parts sales tax, and warned that the bill would prematurely alter a funding structure that cities rely on for predictable transportation revenue. The Minnesota Association of Small Cities said small cities had long lacked dedicated transportation funding and wanted a stable, ongoing revenue stream, but were neutral on the exact source as long as it was reliable. Metro Cities echoed support for stable, predictable transportation funding for metro-area cities. The committee took testimony and discussion only; no final vote was recorded in the excerpt beyond the motion to refer the bill to the Tax Committee.

Transcript Highlights:

• First, if they have other revenue sources, such as fee revenues for a licensing board, they can bring
• Fee revenues for, like, a licensing board, they can bring in up to 5% of that fee revenue and increase
• And that the revenue, it would be cut from unanticipated increased revenue.
• On line 45, they got very technical revenues that come in.
• There's trust fund revenues that the House used.

Keywords: 996, all

Transcript Highlights:

• It continues to face operational shortfalls as expenditures outpace revenues, with total revenue in 2025
• You could look at the revenue side of the ledger. Raising new revenues will be difficult.
• or revenue sources that are not ongoing.
• If we value it, then we have a responsibility to find the revenue for it, and revenue that is not patched
• Which is kind of inherent in those revenues.

Keywords: 988, house, all

Transcript Highlights:

• > and<00:52:36.359> that revenues uh estimated revenues and that revenues uh estimated revenues
• Appropriations and impact on revenues Appropriations and impact on revenues just<01:05:38.200>
• <01:09:22.040> Etc Revenue Etc Revenue Etc so<01:09:24.719> thank<01:09:24.880> you<
• categories are uh Revenue categories are uh Revenue uh<01:14:25.840> but<01:14:26.000>
• 25 less funds for Budget Revenue 25 less funds for Budget Revenue transfers<01:25:29.040> other

Keywords: 1189, house, all

Summary: The Finance Committee met for an organizational opening session in which the chair, Ken Weyler, called the committee to order and members introduced themselves. The introductions established the committee’s leadership and membership, including Vice Chair Dan McGuire, ranking member Mary Jane Wallner, deputy ranking member Karen Eil, clerk Jerry Griffin, and other members from both parties. Many members briefly described prior legislative service and professional backgrounds, with several noting prior experience on Finance or related budget committees. Chair Weyler then outlined committee procedures and expectations. He emphasized that Finance handles spending bills and fiscal notes, that bills will generally be heard by the full committee and then referred to the appropriate division, and that executive sessions may be used to save time when positions are clear. He reviewed rules on attendance, dress, phones, paperwork handling, committee replacements, conflict of interest and recusal, and the process for testimony, including that members should listen without debating witnesses and that sponsors of bills must recuse themselves from questioning witnesses on their own bills. He also described the committee’s structure and workload, noting three divisions and the role of legislative budget staff. Weyler said the committee would likely see bills from many policy committees that have fiscal impacts, and he encouraged policy committees to find offsets within their own areas rather than assume new spending will be added. No bills were heard and no votes were taken during this portion of the meeting.

Transcript Highlights:

• The HST is collected by the Department of Revenue.
• And that's the HST revenue from non-petroleum products.
• the revenue going into the accounts.
• the revenue going into the accounts.
• We still have six revenue forecasts this biennium, and if revenue continues to decline, the hole we face

Summary: The committee first heard updates on the Model Toxics Control Act (MTCA) and related funding. Department of Ecology staff explained how MTCA and the hazardous substance tax support cleanup, prevention, stormwater, and local assistance programs, but said forecasted revenues have declined while appropriations and transfers have outpaced incoming funds. Ecology said the operating account will require underspending to stay balanced this biennium and that the problem is ongoing, with further reductions possible if forecasts worsen. Ecology also reviewed the state cleanup program, noting there are more than 14,500 cleanup sites in Washington and that new sites continue to be discovered faster than they are cleaned up. A question from Representative Lee raised the long-term issue of declining fossil-fuel-based revenue, and Ecology agreed that this is a future structural concern even though the current shortfall is driven more by forecasts and transfers than by fuel-use decline. The Pollution Liability Insurance Agency described its underground storage tank and heating oil programs, saying it has modernized from a reinsurance model to a financial assurance model with stronger state oversight and cleanup milestones. Russ Olson said the agency’s dedicated petroleum tax account is in strong financial condition, but emphasized the importance of preserving that funding source. He also discussed the loan and grant program for historic commercial releases and a new heating oil loan/grant program, while noting the agency is working on equity concerns where liens can be disproportionate to property values in smaller communities. Practitioners and advocates then offered differing views on MTCA’s performance: one attorney urged a collaborative review process to make cleanups faster, less expensive, and more certain, while another consultant argued the program is too conservative and process-heavy and should focus more narrowly on actual exposure and realistic cleanup standards. Environmental and community groups countered that MTCA is essential for cleanup, pollution prevention, stormwater control, and public participation, and that it is especially important for environmental justice communities such as the Duwamish Valley. Port and city representatives stressed that MTCA grants and cleanup funding are critical for large redevelopment projects, but said long timelines, permitting delays, and funding uncertainty can slow projects and jeopardize commitments. The committee then shifted to utility wildfire risk. Staff summarized recent legislation, including requirements for utility wildfire mitigation plans, creation of a wildfire mitigation standards work group, authorization for captive insurance by local governments and PUDs, securitization authority for disaster costs, and the existing wildfire response and resilience account. Chelan County PUD and Puget Sound Energy described extensive mitigation efforts such as vegetation management, grid hardening, undergrounding, AI smoke cameras, weather stations, enhanced operating settings, public safety power shutoffs, and community outreach. Both said wildfire risk is rising and insurance costs are increasing, and Chelan PUD asked the Legislature to restore funding to the wildfire response and resilience account. The Office of the Insurance Commissioner said a 2022 utility liability market study found insurance availability is tightening as perceived risk rises, and reported that a 2025 work group recommended restoring community resilience funding, requiring insurers to share wildfire risk scores and mitigation steps with property owners, and creating a grant program based on insurance industry wildfire standards. A PNNL scientist added that wildfire probability is increasing in parts of Washington and that mitigation requires long-term, landscape-scale coordination. The final speaker began describing California’s approach to wildfire risk, but the transcript cuts off before that presentation concluded.

Transcript Highlights:

• Next, we have Transportation Revenue, National Trends, and New Mexico's Approach.
• Revenues going to the City Road Fund, another 18.75% of those revenues go to the Transportation Project
• Transportation revenues.
• And one if all of the revenue had gone to transportation.
• Revenues. And I'm wondering what you mean by "principled."

Transcript Highlights:

• In the revenue sports that are receiving revenue share, and we have to do it to compete with other schools
• In the revenue sports that are receiving revenue share, and we have to do it to compete with other schools
• have a hard time managing revenue share without some additional support.
• have a hard time managing revenue share without some additional support.
• No, I'm not aware of general revenue going to schools to offset revenue share. I've not seen that.

Summary: The committee first considered revisions to the JBC rules, which staff said were all prompted by acts passed in the 2025 legislative session. The rules were adopted without objection. Members then received a balanced budget presentation from DFA Secretary Jim Hudson on the governor’s FY27 proposal, which he said was built around three priorities: limiting state government growth, continuing investments in education, and advancing income tax cuts. He highlighted major additions for education funding, EFA growth, pay plan costs, higher education productivity funding, drug task forces, corrections medical costs, the governor’s 1033 initiative, SNAP error-rate reduction, and Medicaid sustainability, while also explaining a new A/B funding category structure intended to prioritize recurring costs and preserve room for tax cuts. Members questioned Hudson about the cost of income tax reductions, the constitutional balanced-budget requirement, education funding, the Educational Adequacy Fund, Medicaid trust fund balances, and the impact of federal changes on Medicaid and SNAP. Hudson said each tenth of a percent income tax cut would cost about $58 million, the budget remained balanced, public education would still receive historic increases, and the Medicaid trust fund would be monitored closely with additional set-asides proposed. He also said the FY27 SNAP administrative cost increase would be about $18 million. The committee then heard from the Division of Higher Education, which reported institutions were 2.61% more productive overall and that the budget recommendation followed the statutory productivity formula. Questions focused on why some institutions were receiving decreases or large increases, how the formula works, and how the new return-on-investment metric and committee composition would affect future funding. The committee approved several higher education-related actions, including personnel changes for nine institutions and special language for North Arkansas College’s move into the University of Arkansas system. Staff then walked members through the higher education appropriation summary, explaining large percentage increases at several institutions were tied to federal funds or corrected carry-forward issues, including the U of A School of Mathematical, Sciences and the Arts, South Arkansas College, SAU Tech, ASU Mountain Home, and ASU Newport. Members also discussed UAPB’s 1890 extension program and the University of Arkansas Division of Agriculture’s land-grant matching funds; officials said UAPB’s recommendation was being aligned with actual spending and that the Division of Agriculture’s Smith-Lever and Hatch matches were included within its overall appropriation. The committee ultimately adopted the Higher Education Coordinating Board’s recommendations for all institutions and then moved on to the Department of Corrections section, with the chair outlining how the committee would proceed through those appropriations by section.

Transcript Highlights:

• The first is from the Department of Revenue. Um, this is a confidential request for MB 019.
• <00:04:57.759> to up some of the uh decline in Revenue to up some of the uh decline in Revenue
• Is the main concern the stream of revenue or where it comes from, the source, how it's done?
• Gas tax revenues didn't go as far as they did. The gas tax is now up to 31.8 cents a gallon.
• We need to have those revenue streams, but this is not the right way to do it.

Keywords: 1183, house

Summary: The Minnesota House Transportation Finance and Policy Committee met on January 22, 2025, for its first meeting and took up House File 5, introduced by Representative Jim Joy and moved to the Tax Committee. Joy said the bill would make Minnesota more affordable by eliminating the Social Security tax, repealing the motor fuels tax inflator, removing the retail delivery fee, and changing vehicle-related taxes and metro-area sales tax allocations. Committee fiscal staff reviewed the bill’s fiscal effects, including impacts on the general fund, the Highway User Tax Distribution Fund, the Transportation Advancement Account, and the split between Metropolitan Council and metropolitan counties. Testimony was largely divided along stakeholder lines. The Minnesota Grocers Association and Minnesota Propane Association supported repealing the retail delivery fee, arguing it creates administrative burdens, requires costly software changes, and raises costs that are passed on to consumers; propane representatives said the fee is especially burdensome because most of their deliveries are exempt but still require tracking and reporting. In contrast, the League of Minnesota Cities, Minnesota Association of Small Cities, Metro Cities, and Minnesota Association of Townships emphasized the need for stable, predictable transportation funding for local roads and said they support the Transportation Advancement Account and related revenue streams, though some were neutral on the exact source of funding. The League and small cities groups said local governments need reliable annual revenue and that past funding has been inconsistent. Committee members asked about who pays the delivery fee, its exemptions, and how much revenue it has generated versus earlier forecasts. Fiscal staff said current estimates for delivery fee revenue are below original projections, and explained the fee’s exemptions and $100 transaction threshold. Representative Joy said his intent was to keep small cities and townships whole as the bill moves forward. No vote was taken in the portion of the meeting provided; the bill was heard and referred as noted at the outset.

Transcript Highlights:

• <00:27:20.640> to Massachusetts, bringing the revenue to Massachusetts, bringing the revenue
• So we're charging revenue.
• up that revenue from what bucket? up that revenue from what bucket?
• revenue. So, I really can't answer that. revenue. So, I really can't answer that.
• So VLT revenue is increasing.

Keywords: 1189, house, all

Transcript Highlights:

• coming along, what is the revenue on that?
• that have been let And awarded and as those revenues might change or those revenue estimates might change
• Yes, and it was general revenue funded. Correct, correct.
• As a business owner, your job is revenue, right?
• This transfer of the general revenue to the VR program caused an increase of general revenue requirements

Keywords: 1184, house, all

Transcript Highlights:

• rental revenues and tours.
• Some other revenue and then leased interest revenues.
• So we could focus purely on revenue, but there are customers that might pay a higher revenue but have
• Have that revenue come in. So there's something there.
• We charge revenues currently and use up our expenses, but we can't use those revenues until like 18 months