Transcript Highlights:

• Most of that stuff is taxed when you buy it.
• All those products are going to get taxed when you sell them. It's just another layer of tax.
• tax, including tax on inventory, stands out as a negative factor when businesses consider expanding
• Current law allows a taxing unit to levy an unrestricted interest and sinking property tax rate to generate
• It does permit a taxing entity to adopt an interest and sinking taxing rate higher than the minimum rate

Bills: SB32 , SB464 , SB996 , SB1163 , SB1173 , SB1277 , SB1452 , SB1453 , SB1548 , SB1882 , SB1883 , SB2016

Committee: Senate Local Government

Summary: The Senate Local Government Committee heard several bills by Senator Bettencourt focused on property tax and local government accountability. SB 32 would provide about $700 million in business tax relief by raising the business personal property exemption from $2,500 to $25,000 and continuing a 20% franchise tax credit for inventory taxes paid. Witnesses from NFIB, the Texas Retailers Association, and Texas Realtors supported the bill, saying business personal property and inventory taxes are burdensome and especially hard on small businesses. After no opposition testimony, SB 32 was left pending. The committee also heard SB 1453, which would change how interest and sinking tax rates are calculated by using only the minimum debt service required under bond schedules, while still allowing a higher rate with a 60% governing body vote and a public explanation. A witness from the Texas Taxpayers and Research Association supported the bill as a way to keep debt rates from rising as property values increase and to preserve tax relief. The bill was left pending after testimony. SB 1883 would tighten rules on local impact fees by requiring 60 days of public availability for capital improvement plans and land use assumptions, raising the approval threshold for adopting impact fees from a simple majority to two-thirds, limiting how often fees can be increased, and expanding notice requirements. Builders and developers testified in support, arguing that impact fees are often poorly reviewed, lack accountability, and are passed on to homebuyers, worsening housing affordability. Committee members discussed adding audit provisions and questioned the lack of city testimony. The bill was left pending with subcommittee action. SB 1452 would require a voter election to decide whether a municipal management district continues to exist, with dissolution if voters reject it; supporters said it would add accountability, while others noted some districts provide essential services and infrastructure. The committee heard testimony from district representatives and builders, then left SB 1452 pending before recessing.

Transcript Highlights:

• By way of background, tax increment financing is a method of allocating a portion of taxes to finance
• The apportionment of taxes within the increment area are distributed as follows: Each taxing district
• must receive the portion of its regular property taxes produced by the rate of tax levied by or for
• the taxing district on the tax allocation base value for that increment area, and the local government
• district approve a property tax levy lid lift, the impacted taxing district and the local government

Summary: The Senate Local Government Committee waived the five-day notice rule and then took up two House bills. HB 2418 would tighten and expand permit-review timelines for residential projects, including requiring “procedural completeness” determinations, adding excluded time periods, extending timeline and refund requirements to certain fee-charging state and local entities, creating review deadlines for special purpose districts and public utility districts, and requiring local governments to designate a permit responsible official and a single point of contact. The sponsor said the bill was intended to improve predictability and reduce delays in permitting; builders and housing advocates strongly supported it, while sewer and water districts and county representatives raised concerns about incomplete referrals, staffing shortages, business-day versus calendar-day deadlines, and the cost of implementing the new contact requirements. The committee heard testimony but took no final vote on the bill in the transcript. HB 2451 would revise Washington’s local tax increment financing program. Staff explained that the bill adds guardrails and transparency, changes notice and hearing requirements, adjusts the assessed-value cap for increment areas, adds public safety facilities to eligible improvements, requires more detailed project analyses and annual reporting, and creates a negotiation/mediation/arbitration process for impacts to taxing districts. The sponsor said the measure was a carefully negotiated compromise intended to address junior taxing district concerns without creating an opt-out. Supporters from the Port of Tacoma, fire chiefs, cities, and counties said the bill improves the earlier TIF framework by strengthening the but-for test, notice, and participation rules, while counties still expressed concern about cumulative impacts and asked for future opt-out discussions. No final committee action was taken in the transcript.

Transcript Highlights:

• tax, motor vehicle sales tax is now the primary source of funding for these, although sales tax funds
• </c> regional sales and use tax uh functions. regional sales and use tax uh functions.
• Mindot transportation sales tax.
• </c> transportation sales tax. transportation sales tax.
• So, the MVEST tax, 12.4%; the sales tax, 4.55%; and then other sources as well.

Bills: HF4693

Committee: House Transportation Finance and Policy

Transcript Highlights:

• </c><00:03:35.160><c> increases</c> who have large property tax increases who have large property tax
• relief, it does not shift the tax relief, it does not shift the property<00:03:41.600><c> tax</c><00
• But now the income tax, sales tax made up the difference.
• </c> from getting taxed out of their home. from getting taxed out of their home.
• </c> tax system." tax system."

Transcript Highlights:

• That is what is reported to the tax department on actual tax returns filed.
• Okay, so we're going to the 125 agenda item, tax updates, and we have our tax commissioner here.
• Do they ever give you credit for the property tax rebate that we've, a property tax credit that we've
• income tax.
• income tax.

Committee: Joint Government Finance Committee

Transcript Highlights:

• and everybody pays sales taxes taxes and everybody pays sales taxes whether<00:37:07.200><c> they</c
• tax bill.
• of rent goes to property taxes.
• that pay property taxes and wealthy people who pay a lot of income tax.
• > if</c> it's income taxes or property taxes if it's income taxes or property taxes if somebody<01:13

Bills: HF25 , HF4

Committee: House Ways and Means

Transcript Highlights:

• It's tax on which is uh in the tax code.
• So that includes the motor vehicle sales tax, lease sales tax, the short-term rental tax, the automotive
• So that includes the motor vehicle sales tax, lease sales tax, the short-term rental tax, the automotive
• > uh</c><01:26:14.800><c> the</c> sales tax, lease sales tax, uh the sales tax, lease sales tax, uh the
• , the wheel tax, the excise tax, and the gravel tax.

Transcript Highlights:

• , not property tax.
• Nothing else is taxed other than an RV.
• What is the actual state and local sales tax revenue? $4.2.25. 4-2. And local sales tax revenue.
• start charging tax.
• There ain't no tax on that.

Committee: House Government Efficiency

Summary: The Committee on Government Efficiency held a public hearing on House Bill 2809, sponsored by Representative Knight, which would exempt long-term RV campground stays of 30 consecutive days or more from state and local sales tax. Knight said the bill responds to a Department of Revenue ruling and is intended to treat long-term RV site rentals more like other long-term lodging, noting that many full-time RV users are effectively living in their units. Committee members asked about the tax treatment, the fiscal impact, and whether the bill was aimed at camping and campground stays generally; Knight and witnesses said the issue has created confusion for campground operators and customers. Supporters included the Missouri Association of RV Parks and Campgrounds, Associated Industries of Missouri, and the Missouri Canoe and Floaters Association. They argued the Department of Revenue’s rulings have been inconsistent and have sometimes labeled campgrounds as places of amusement or recreation based on amenities or activities such as cornhole, karaoke, or nearby trails, leading to surprise tax bills and competitive disadvantages for some operators. Witnesses said a legislative fix is needed, that campgrounds operate on thin margins, and that the change would help Missouri remain competitive with other states. They also said long-term RV guests, including travel nurses and workers staying near Fort Leonard Wood, would benefit from the exemption. Committee members largely expressed support and frustration with the Department of Revenue’s interpretation, comparing campground sites to other long-term rentals and noting the lack of a clear standard. No one testified in opposition. The hearing concluded without a vote or other action on the bill.

Transcript Highlights:

• </c> for possible inclusion in the 2025 tax for possible inclusion in the 2025 tax bill<00:10:47.959>
• </c> doesn't meet the blight test for tax doesn't meet the blight test for tax increment<00:14:41.480
• 12.480><c> in</c> impacted by foregoing tax base for in impacted by foregoing tax base for in some<00
• </c><00:37:21.560><c> credits</c> receive lowincome housing tax credits receive lowincome housing tax
• </c> larger Tax larger Tax Bill<00:41:04.240><c> thank</c><00:41:04.359><c> you</c><00:41:04.520><c>

Bills: HF1746 , HF2585 , HF1159 , HF2574 , HF2839 , HF157 , HF158 , HF160 , HF338 , HF512

Committee: House Taxes

Transcript Highlights:

• It's a senior tax credit, but what I realized is that it's really a tax cut.
• be considered tax revenue actually received."
• So the tax credits authorized under this section shall be considered tax revenue actually received.
• So that means that they're not going to adjust once this tax credit happens, or tax cut, and lay the
• And for HB 2672, it's going to be $10 million for the tax credit on personal property tax.

Committee: House Veterans and Armed Forces

Transcript Highlights:

• And we'll start with gas taxes.
• of the gas tax?
• The Utah fuel tax is actually kind of an interesting tax.
• The Utah fuel tax is actually kind of an interesting tax.
• fuel taxes.

Summary: The committee first received a presentation from NCSL staff on national transportation funding trends and alternative user-fee options as gas tax revenue declines. The presentation covered declining fuel-tax purchasing power, the effects of more fuel-efficient and electric vehicles, and a range of state responses including indexed gas taxes, EV and hybrid registration fees, voluntary and mandatory road usage charges, transportation network company fees, retail delivery fees, and per-kilowatt-hour EV charging fees. Members asked about Virginia’s mileage-fee program, enrollment rates, and whether states had reduced gas taxes alongside new fees; the presenters said they would follow up with additional information. Committee staff then presented a comparison of Washington’s transportation budget with Arizona, Colorado, Nevada, and Utah, focusing on population, lane miles, road condition, fuel taxes, preservation spending, mega-projects, and governance structures. The discussion highlighted Washington’s unique transportation pressures, including ferries, fish-passage obligations, high debt service, and major capital projects. Members asked follow-up questions about debt service, interest costs, CCA impacts on fuel prices, and whether project costs differed by state. The committee held public hearings on three bills. House Bill 2109 would allow vehicles being towed on trailers to use coverings to contain mud, rocks, or debris instead of requiring prior cleaning; the bill’s sponsor and construction witnesses supported it as a practical solution, and the fiscal note showed modest costs to WSP and WSDOT. House Bill 2139 would raise snowmobile registration fees to support snow park and trail grooming; State Parks, DNR, and several snowmobile advocates supported it, while some snowmobile users opposed it, arguing that enforcement of unregistered sleds should be addressed first. House Bill 2192 would expand the Washington Traffic Safety Commission’s fatal crash review authority and allow it to collect certain health data; the sponsor and agency supported the bill as a public-health tool, while one attorney raised concerns about limiting civil discovery and evidentiary access in fatal crash litigation.

Transcript Highlights:

• tax that they paid.
• The other would be the affordable housing tax credit.
• The other would be the affordable housing tax credit.
• Because I personally don't want tax money being forgone for housing because I personally don't want tax
• So my understanding is the tax credit is to go against the tax liability exposure of the employee.

Bills: SB1280 , SB1392 , SB1393 , SB1395 , SB1400 , SB1405 , SB1832 , SB1839 , SB1989 , SB2001 , SB2143

Committee: Senate Revenue and Taxation

Summary: The Senate Revenue and Taxation Committee took up a mix of tax policy, incentive, and administrative measures, beginning with an annual motion authorizing the chair to request OSBI background checks for any Horse Racing Commission nominees. The committee then passed Senate Bill 1839, as amended, to create a de minimis ad valorem tax exception for personal property valued at $5,000 or less per account. The committee also confirmed Daniel LaFortune to the Oklahoma Tax Commission by a 12-0 vote, with LaFortune emphasizing his IRS background and commitment to customer service and fairness. Several other bills were approved, including Senate Bill 1280 to align the plugging fund sunset date in the tax code with another statute; Senate Bill 1832 to reauthorize income tax refund checkoffs for veterans programs; Senate Bill 2001 to freeze property taxes for three years for homeowners displaced by a turnpike or eminent domain, though members raised concerns about downsizing and future valuation; and Senate Bill 1405 to renew the wildlife diversity checkoff, with testimony clarifying it would fund non-game species rather than predator reintroduction. Senate Bill 1989 also passed, expanding the Oklahoma College Savings Plan to accept digital payment platforms such as Venmo and PayPal, with members discussing how deposits would be tracked. The committee then considered Senate Bill 2143, which would allow counties to use aerial or satellite imagery and fixed-wing aircraft for property assessment while excluding drones; supporters cited efficiency, safety, and accuracy, while opponents raised privacy, foreign-company, and taxpayer-frustration concerns. The bill passed 7-4. Senate Bill 1393, a housing redevelopment tax credit for vacant and abandoned properties, passed 8-3 after discussion about affordable housing requirements and project ranking. The committee also approved three Incentive Evaluation Commission recommendations: Senate Bill 1392 to increase the aerospace engineer employee tax credit, Senate Bill 1395 to limit carryforward of the new jobs tax credit to seven years, and Senate Bill 1400 to consolidate aircraft-related sales tax exemptions. The meeting adjourned after the chairman noted more bills would be heard at a later meeting.

Transcript Highlights:

• </c> rentals tax. rentals tax.
• I mean, our biggest tax is the business profits tax.
• </c> with tax credits. with tax credits.
• </c> an R&amp;D tax credit." an R&amp;D tax credit."
• </c> profits tax and business enterprise tax. profits tax and business enterprise tax.

Committee: Senate Ways and Means

Transcript Highlights:

• And each certify to property taxes.
• paying taxes, sales taxes<00:17:34.240><c> on</c><00:17:34.480><c> meals</c><00:17:34.799><c> as</c><
• </c> be included in the omnibous tax bill. be included in the omnibous tax bill.
• Property taxes go up.
• </c> not to get additional tax charge. not to get additional tax charge.

Bills: HF238 , HF3381 , HF3754 , HF1049

Committee: House Taxes

Transcript Highlights:

• So the bigger this tax credit is, the less diesel excise tax revenues the state will have to spend on
• tax, and it's not a refundable tax credit.
• various motor fuels taxes, one being the diesel excise tax.
• Tax credit is not in effect yet.
• We oppose the SAF tax credit.

Summary: The subcommittee heard extensive testimony on the governor’s proposed sustainable aviation fuel (SAF) tax credit, which would provide a $1 to $2 per gallon credit against the diesel excise tax for SAF sold for use in California from 2026 to 2036. The Department of Finance and CARB argued the proposal would help decarbonize aviation, support a long-term transition in the fuel sector, and encourage in-state investment and jobs. The Legislative Analyst’s Office and several outside witnesses recommended rejecting the proposal, saying it is a relatively expensive way to reduce greenhouse gases, could have uncertain or limited net climate benefits, and may shift limited feedstocks away from renewable diesel rather than create additional fuel supply. A major point of debate was whether the credit would mainly benefit California refineries and workers or instead subsidize out-of-state producers while reducing revenue for transportation programs. Supporters, including union members, refinery workers, airlines, Boeing, and airport representatives, said SAF is one of the few viable near-term options for aviation, that California should keep fuel production and jobs in-state, and that the credit would help maintain refinery operations and support the industry’s transition. Opponents, including the LAO, trucking and fuels groups, environmental organizations, and county/road advocates, warned that the proposal could raise gasoline and diesel prices, reduce diesel excise tax revenue for highways and local streets and roads, and provide limited climate benefit compared with other uses of state funds. Some members also raised concerns about feedstock availability, food-system impacts, and whether the policy should be more narrowly targeted if the goal is to support a specific refinery. No vote was taken. The chair stated at the outset that all items on the agenda were being held open for a future hearing, and public comment was taken after the first item because of the level of interest. The hearing then continued with public testimony, which was split between strong support from labor and industry and strong opposition from environmental, transportation, and local government groups.

Transcript Highlights:

• These are the amount of tax credits available each school year, each tax year.
• school tax credit.
• school tax credit. tax than they use in a private school tax credit.
• There are refundable tax credits and non-refundable tax credits. This is a refundable tax credit.
• tax bill of $75,000.

Bills: HB1675 , HB3242 , HB1739 , HB3320 , HB3047 , HB4434 , HJR1089 , HB4432 , HB3718 , HB3705

Committee: Senate Rules

Summary: The Rules Committee met to consider a long slate of executive nominations and several bills. All of the nominations received broad support and were advanced to the floor, including Lori Burns to the Redlands Community College Board of Regents, Lisa Daly to the Oklahoma State Credit Union, Juana Ellison to the Forensic Review Board, Haley Frick to the Regional University System of Oklahoma, Michael Hillary to the Wildlife Conservation Commission, Dustin Hillary to the University of Oklahoma Board of Regents, John Holt to the Used Motor Vehicle Dismantler and Manufactured Housing Commission, Brian Sweeney to the Capital Medical Center Improvement and Zoning Commission, and Cale Walker to the USAO Board of Regents. Most nominations passed unanimously; Brian Sweeney’s nomination passed 15-2. The committee then heard and passed several policy bills. HB 1675 created a severe-weather preparedness framework for youth camps and passed 16-1. HB 3242, the Women’s Safety and Protection Act covering shelters, schools, and higher education, passed 15-2 after questions about enforcement and legal remedies. HB 1739 increased state police pension benefits and employer contributions to help retain officers, passing 16-1. HB 3320 overhauled the sunset review process for boards and commissions and passed 15-2. HB 3047 designated LOFT as the central recipient for legislative reports and passed unanimously, and HB 4434 required the governor or acting governor to notify the next successor before leaving the state, also passing unanimously. The committee also advanced HB 4432, which would restore the ability to deduct gambling losses against gambling winnings for state income tax purposes; supporters said it would help ordinary taxpayers, while opponents raised fiscal concerns, and it passed 16-1. HB 3705 raised the parental choice tax credit cap from $250 million to $275 million and passed 13-3 after extended debate over school choice, public funding, and reporting. HB 3718 set timelines for school districts to process evaluations tied to the Lindsay Nicole Henry Scholarship program and passed 12-2, with critics arguing it could create a separate track and strain school psychology resources. HJR 1089, which would have sent voters a constitutional convention referendum, was laid over and not voted on. The meeting ended with adjournment after the final vote.

Transcript Highlights:

• You'll hear about various tax policy changes.
• I focused on the tax policy.
• In tax year beginning with tax year 2026, it does exclude some of the provisions that were contained
• returns got a tax cut for this.
• But again, overall on taxes, $1.4 billion, no tax on tips, no tax on overtime, giving standard deduction

Transcript Highlights:

• That brings us to RS 33580, sales tax, sales price.
• You said you can't raise taxes.
• Back to the tax issue with respect to the exemption.
• The reason it's before this Revenue and Tax Committee is that there is $80,000 specified in the tax code
• And House Revenue and Tax stands adjourned.

Committee: House Revenue and Taxation

Transcript Highlights:

• </c> and corporate franchise taxes. and corporate franchise taxes.
• </c> tax revenues. tax revenues.
• year</c><00:37:04.000><c> 25</c> estimated tax payments for tax year 25 estimated tax payments for tax
• </c> to the sales tax. to the sales tax.
• . taxes. taxes.

Bills: HF3425

Committee: House Ways and Means

Transcript Highlights:

• sales tax exemption that has now expired.
• The rental car tax.
• It also increases the aircraft excise tax.
• tax.
• Consider requiring current aviation fees and taxes, and future increases in aviation fees or taxes, be

Summary: The Senate Transportation Committee met for a work session and public hearing on February 19, 2026. In the work session, Switch Maritime presented a proposal for hydrogen fuel cell ferries for Washington State, including a budget proviso directing the Joint Transportation Committee to study hydrogen propulsion and a lease model for future Washington State Ferries procurement. The company described its Sea Change vessel, said the design could be adapted for Washington routes such as San Juan Islands–Anacortes, and emphasized that hydrogen fueling could be delivered through a mobile supply chain without new charging infrastructure. Senators asked about vessel flexibility, size, hydrogen availability, and terminal compatibility. The committee also received an update from WSDOT on the new public-private partnership program authorized in 2025. Staff said the agency is developing a four-phase implementation process, including consultant selection, a steering committee, a program manual, stakeholder engagement, and candidate project identification, with a report due to the transportation committees on September 1, 2026 and program launch targeted for January 1, 2027. The presentation stressed that the program manual will provide flexibility within the statute and that legislative input is being sought on engagement and project timing. The public hearing was on Senate Bill 6352, an omnibus transportation resources bill that revises and expands provisions from last year’s ESSB 5801. Staff outlined sections covering a mobile driver’s license and ID card program, a reduced-fee ID card for older drivers, changes to alternative fuel and aviation taxes and fees, revised sales tax distributions for ferry and multimodal funding, transit and bicycle education grants, fish passage permitting, clean energy siting on WSDOT right-of-way, toll notice procedures, older driver safety outreach, traffic safety camera revenue sharing, and a delay to the tow-truck indigent impound reimbursement program. The prime sponsor highlighted two priorities: digital driver’s licenses and dedicated ferry funding. Testimony was mixed. Supporters included airlines and aviation groups backing mobile ID and repeal of the luxury aircraft tax, transit and bicycle safety advocates supporting grant flexibility and continued bike education funding, and ferry advocates supporting dedicated ferry revenue. Local governments, including Bellevue, Kenmore, and Tacoma, raised concerns about the traffic camera revenue change, saying the shift from net to gross revenue would reduce local safety funding and could discourage new camera programs. The Association of Washington Cities also warned about unintended consequences in the fish passage and traffic camera provisions. RV dealers sought a delay to the luxury vehicle tax, and peer-to-peer car-sharing platform Turo asked for clarification on documentation requirements. The committee took no final vote and announced it would consider executive action the following week.