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> 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:

• 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:

• 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.

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:

• </c> uh on the beginning farmer tax credit. uh on the beginning farmer tax credit.
• </c> beginning farmer tax credit at the MDA. beginning farmer tax credit at the MDA.
• </c><01:08:39.839><c> tax</c> kind of looking at where the tax tax kind of looking at where the tax tax
• </c> and higher net tax share. and higher net tax share.
• Residential property taxes go up, and residential property taxes are going up.

Committee: Senate Taxes

Transcript Highlights:

• </c> levy taxes on property within the tax levy taxes on property within the tax increment<03:43:16.160
• </c><04:09:13.040><c> Tax</c> the tax increment district. 16. Tax the tax increment district. 16.
• </c><04:09:32.000><c> 18</c><04:09:32.560><c> taxing</c> tax increment district. 18 taxing tax increment
• The tax tax increment district.
• </c> all tax increments received for a tax all tax increments received for a tax increment<04:23:04.640

Summary: The meeting included a Senate recognition ceremony honoring the Winona High School boys basketball team for winning the 2026 Alabama High School Athletic Association 5A state championship. A resolution was read commending the team for its 101-40 victory over Silicag, noting the team’s record-setting performance, Brendan Davis’s MVP honor, the contributions of other players, and Coach Cedric Lane’s leadership. Senators and the lieutenant governor praised the players’ sportsmanship, the school community, and the team’s historic season, and copies of the resolution were presented to the team, coaches, and administrators. Several guests and school representatives also spoke briefly, including the coach and principal, who thanked the Senate and noted the team’s success and the principal’s retirement after 35 years. After the recognition, the Senate returned to session and adopted the Committee on Rules report setting the special order calendar. The calendar included Senate Bill 99 on the Ten Commandments, Senate Bill 298 on Class 3 municipalities, House Bill 381 on camp safety, Senate Bill 370 on tax increment districts, Senate Bill 363 on the Department of Economic and Community Affairs, House Bill 466 on firefighters, House Bill 95 on elections, House Bill 259 on stablecoin, and Senate Bill 342 on education. The chamber then took up SB 99, sponsored by Senators Kelly and Sessions. Senator Kelly described the bill as requiring local school boards to display the Ten Commandments, together with founding documents such as the Declaration of Independence, Constitution, Bill of Rights, and Alabama Constitution preamble, in certain history classrooms and common areas for grades five through 12, using donated displays and funds when available. He said the bill was intended as a historical and educational measure, not religious instruction, and emphasized the inclusion of a disclaimer stating Alabama is not establishing a religion. After extended debate and a petition to close debate from the Rules Committee, the Senate voted on the bill by long roll and passed SB 99, with the recorded vote announced as 30 yeas and 4 nays.

Transcript Highlights:

• SB 63 doesn't raise taxes.
• SB 56 extends that same principle to property tax relief.
• It’ll expand KETFRA’s sales and use tax extension program.
• One underscore three points: this is a federal tax credit; this is not a state tax giveaway.
• So imagine what a tax relief would do for our veterans.

Committee: House Revenue and Taxation

Summary: The Assembly Committee on Revenue and Taxation heard several bills dealing with taxes, transit funding, clean energy incentives, veterans’ property tax relief, housing-related remediation fees, and federal tax conformity. Early in the hearing, SB 63 was presented as a Bay Area transit funding measure authorizing a local sales tax ballot measure for BART, Caltrain, Muni, and AC Transit, with supporters emphasizing service cuts that could occur without new funding and an opponent raising Proposition 13/218 concerns. SB 56 and SB 296 both focused on disabled veterans’ property tax relief, with supporters arguing that disability compensation should not count as income for eligibility and that the bills would help veterans remain housed; SB 296 was described as a broader exemption for 100% disabled veterans and surviving spouses. SB 86 sought to extend and expand the California Alternative Energy and Advanced Transportation Financing Authority’s sales and use tax incentive program, including fusion energy, and SB 302 would conform state tax law to federal clean energy credit provisions to help projects monetize federal incentives. SB 328 would cap Department of Toxic Substances Control fees for contaminated-soil remediation on housing projects, with supporters saying current fees can make infill housing infeasible. SB 711 would update California’s tax conformity date to January 1, 2025 to align with federal tax law changes and simplify filing. After quorum was established, the committee took formal action on the bills. SB 63 was approved 4-2 and sent to Appropriations; SB 86, SB 302, SB 328, SB 711, and SB 293, SB 359, SB 419, SB 587, SB 603, SB 663, SB 710, and SB 785 were approved with various amendments and sent to Appropriations, while SB 56, SB 284, SB 723 were held in committee and SB 296 and SB 353 were made two-year bills. The committee also adopted amendments on several measures, including reducing SB 86’s aggregate cap, delaying SB 302’s effective date with a sunset, and narrowing SB 710’s exclusion to certain nonresidential solar systems. The hearing concluded with the chair thanking members and staff and adjourning the committee.

Transcript Highlights:

• tax, and it's not a refundable tax credit.
• The film tax credit that's a refundable tax credit that's sort of funded by the General Fund.
• motor fuels taxes, one being the diesel excise tax.
• We oppose the SAF tax credit.
• We oppose the SAF tax credit.

Summary: The subcommittee heard 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 credit would help decarbonize aviation, support refinery transitions, and keep fuel production and jobs in California. The Legislative Analyst’s Office recommended rejecting the proposal, saying it is a relatively expensive way to reduce greenhouse gases, could have uncertain or limited climate benefits, and would reduce diesel excise tax revenue that supports highways, local streets and roads, and other transportation programs. A major point of debate was whether the credit would simply shift limited feedstocks from renewable diesel to SAF rather than create new low-carbon fuel supply. Professor Aaron Smith and the LAO said that because feedstocks such as used cooking oil, tallow, and vegetable oils are limited and already used in other fuel markets, the policy could increase SAF at the expense of renewable diesel, with possible increases in fuel prices and little net emissions benefit. Administration and CARB staff disputed that outcome, saying additional waste-based feedstocks are available and that the policy would not meaningfully raise gasoline or diesel prices. Senators focused on feedstock availability, impacts on road funding, fairness to consumers, and whether the proposal was really aimed at preserving specific refineries such as Phillips 66. Public comment was sharply divided. Labor representatives, refinery workers, airlines, Boeing, airports, and some local residents supported the proposal, emphasizing jobs, refinery investment, and aviation’s need for a liquid-fuel decarbonization pathway. Environmental and transportation groups, including the Center for Biological Diversity, World Resources Institute, Earthjustice, California Environmental Voters, counties, cities, and trucking and asphalt associations, opposed it, citing weak net climate benefits, possible fuel-price impacts, and losses to transportation funding. No vote was taken; the chair announced all items would be held open for a future hearing.

Transcript Highlights:

• </c> of their residents is the property tax. of their residents is the property tax.
• </c> property tax aids. property tax aids.
• Moving on to sales and use tax. Yes. Moving on to sales and use tax.
• </c><01:21:59.719><c> tax</c> of electricity is the sales tag. tax of electricity is the sales tag. tax
• </c> which is um the local sales tax reforms. which is um the local sales tax reforms.

Transcript Highlights:

• They're not tax collectors.
• Of the 60 RVs Swansea taxed in 2024, the average tax bill was $114.
• higher taxes on everyone else.
• First is the tax burden shift.
• And, you know, tax exemptions are popular. No one likes paying taxes.

Committee: House Municipal and County Government

Transcript Highlights:

• We have a tax that's paid. Well, we previously had a tax that was per milliliter.
• So that's a wholesale tax.
• That's what the previous tax was and what this current tax is going to do.
• to the vapor tax account.
• Is it the cost plus the tax?

Summary: The committee first heard House Bill 2483, which would create an annual data broker registry at the Department of Licensing beginning in 2027. Staff explained that data brokers would have to register, pay a fee, and disclose information about the types of data collected, security measures, opt-out options, and whether precise geolocation or consumer health data is involved. Prime sponsor Rep. Kloba said the bill is intended to make data collection and resale more visible to consumers and to address harms such as scams, tracking, and surveillance pricing. Testimony was mixed: TechNet, the Association of Washington Business, and the Washington Retail Association opposed the bill as drafted, saying the definition of data broker is too broad and could sweep in businesses that are not true data brokers, while the sponsor and committee members discussed possible clarifying amendments and public-data carve-outs. The committee then heard House Bill 2400, which would regulate monetized social media content featuring children. Staff described provisions requiring vloggers above certain revenue thresholds to register with the Department of Revenue, creating trust accounts for minor children appearing in monetized videos, allowing young adults to request deletion of monetized childhood content, requiring reporting by social media services, and establishing civil penalties and statutory damages. Rep. Reeves said the bill is meant to draw a line between ordinary family posting and monetizing children online, citing concerns about child labor protections and exploitation. TechNet and AWB opposed the bill, arguing that social media platforms should not be made the middleman for trust accounts and that the private right of action and enforcement structure should be revisited; they urged further work during the interim. Finally, the committee took testimony on House Bill 2439, an omnibus tobacco and vapor product bill. Staff said it would create a responsible vendor program, raise license fees and penalties, require retailers to buy from licensed wholesalers or distributors, add certification requirements for vapor manufacturers, study extended producer responsibility for vapor waste, expand lab testing authority, tighten age-verification rules, prohibit certain imitation or entertainment vapor products, remove state preemption so local governments could adopt stricter rules, and redirect portions of tobacco tax revenue to public health accounts. Supporters, including public health groups, King County, the American Heart Association, and pediatricians, backed the youth-prevention, local-control, and funding provisions. Industry and retail witnesses opposed the bill, focusing on the loss of preemption, higher fees, compliance burdens, and the risk of pushing sales to the illicit market; some also argued the bill should rely more on state-level uniform regulation and stronger enforcement rather than new restrictions.

Transcript Highlights:

• This is also taking the gas tax automatic inflator on gas taxes and getting rid of that.
• </c> we continue to put more and more gas tax we continue to put more and more gas tax on<00:01:29.920
• of the gas tax indexing.
• and a half-cent sales tax.
• I support the tax, the Social Security tax, you know, the complete elimination.

Bills: HF5

Committee: House Transportation Finance and Policy

Transcript Highlights:

• CORRESPONDING REDUCTIONS IN OTHER TAXES SUCH AS THE BUSINESS RENT TAX, IS NOW PART OF THE TAX PACKAGE
• taxes.
• tax reduction today.
• They can't touch sales tax, but they can touch property tax.
• Thank you. 1% tax on total wagering, 3% tax on rose derived thoroughbred.

Bills: HB 118 , HB 388 , HB 114 , HB 205 , HB 2789 , HB 2791 , HB 499 , HB 2960 , HB 3163 , HB 3135 , HB 2427 , HB 1618 , HB 1672 , HB 1722 , HB 1338 , HB 787 , HB 2618 , HB 879 , HB 1126 , HB 4134 , HB 3513 , HB 718 , HB 1536 , HB 1445 , HB 1640 , HB 1893 , HB 1734 , HB 3229 , HB 3306 , HB 1276 , HB 3272 , HB 3276 , HB 3516 , HB 4145 , HB 1585 , HB 4810 , HB 2989 , HB 2558 , HB 3014 , HB 2742 , HB 1695 , HB 29 , HB 125 , HB 145 , HB 171 , HB 255 , HB 50 , HB 363 , HB 116 , HB 491 , HB 1495 , HB 368 , HB 1285 , HB 1905 , HB 2002 , HB 917 , HB 2723 , HB 2067 , HB 1238 , HB 745 , HB 1188 , HB 1606 , HB 2003 , HB 2147 , HB 2355 , HB 2546 , HB 2495 , HB 2818 , HB 2249 , HB 3228 , HB 3240 , HB 1507 , HB 658 , HB 1748 , HB 1851 , HB 1922 , HB 2798 , HB 107 , HB 1587 , HB 3684 , HB 118 , HB 388 , HB 114 , HB 205 , HB 2789 , HB 2791 , HB 499 , HB 2960 , HB 3163 , HB 3135 , HB 2427 , HB 1618 , HB 1672 , HB 1722 , HB 1338 , HB 787 , HB 2618 , HB 879 , HB 1126 , HB 4134 , HB 3513 , HB 718 , HB 1536 , HB 1445 , HB 1640 , HB 1893 , HB 1734 , HB 3229 , HB 3306 , HB 1276 , HB 3272 , HB 3276 , HB 3516 , HB 4145 , HB 1585 , HB 4810 , HB 2989 , HB 2558 , HB 3014 , HB 2742 , HB 1695 , HB 609 , HB 630 , HB 420 , HB 767 , HB 1708 , HB 1404 , HB 2457 , HB 140 , HB 227 , HB 913 , HB 2198 , HB 2763 , HB 1261 , HB 1135 , HB 1318 , HB 2358 , HB 2765 , HB 2735 , HB 3307 , HB 1242 , HB 2842 , HB 333 , HB 201 , HB 694 , HB 2415 , HB 155 , HB 272 , HB 405 , HB 519 , HB 1136 , HB 1275 , HB 1437 , HB 1532 , HB 1675 , HB 1868 , HB 1888 , HB 1990 , HB 2286 , HB 2523 , HB 3129 , HB 3251 , HB 3354 , HB 3479 , HB 3803 , HB 3804 , HB 3805 , HB 3806 , HB 3887 , HB 4163 , HB 4238 , HB 1240 , HB 1842 , HB 2029 , HB 2622 , HB 3255 , HB 654 , HB 4643 , HB 4945 , HB 3611 , HB 3724 , HB 3623 , HB 3810 , HB 4127 , HCR 78 , HCR 12 , SB 767

Transcript Highlights:

• tax line?
• > or</c> taxes or business profits taxes or taxes or business profits taxes or formly<04:27:54.680><c
• </c><04:35:30.879><c> the</c> education's tax and the state tax the education's tax and the state tax
• </c> from property tax bills the total tax from property tax bills the total tax paid<04:37:13.680><c
• /c><04:38:48.719><c> are</c> determine the tax is um tax taxes are determine the tax is um tax taxes

Summary: The hearing focused on HB 563, which would revise the education funding formula for pupils receiving special education services by replacing the current single special education amount with three differentiated categories. Representative Rick Ladd, the prime sponsor, said the bill largely tracks a House-passed version from the prior session with minor figure adjustments, and explained that the proposal uses projected FY26 amounts for three categories based on time in general education versus more intensive placements. He also noted that the bill does not address catastrophic aid directly, but that special education aid, CAT aid, and proration all remain issues for later work sessions. Ladd and supporters argued that weighted categories better reflect actual costs and are more sustainable than treating all IEPs the same. Representative Margaret Drye said the approach was one of the best ideas from the education funding subcommittee and urged the committee to support differentiated aid. Representative Ames asked how the category amounts were derived, and Ladd said Category A follows the FY26 base, Category B is a higher weight, and Category C is a still higher weight for more intensive services, though he acknowledged the exact multipliers were developed earlier and could be revisited. He also said the committee would continue discussing whether the weights are appropriate and how they interact with CAT aid. Testimony from Bonnie Dunham strongly opposed the bill. She argued that funding based on placement rather than actual service need would create incentives to move students into more restrictive settings, could stigmatize children with labels such as "Category C," and would undermine the least restrictive environment requirements under federal special education law. She described her son’s experience in inclusive settings as beneficial and said the bill would have penalized the district for serving him there. In response to questions, she said schools and parents should base funding on the child’s actual needs and costs, not on placement, and urged the committee to recommend the bill inexpedient to legislate.

Transcript Highlights:

• It suspends the gas tax, the most regressive gas tax on everyday Californians.
• An alternative tax credit to the May revision proposal for certain business tax credits lowers taxes
• This bill adds more taxes, more taxes on everyday businesses.
• Now members, I know most of our constituents cannot use tax breaks to zero Tax breaks.
• describe as the sick tax.

Transcript Highlights:

• An example of this is the Highway User Tax Distribution Fund.
• tax, and TAB fees.
• We can index the current $75 annual EV tax to the 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:

• And this is another tax that's being layered on top of another tax on top of another tax.
• You got a transit tax. You have an existing housing tax.
• You got a transit tax. You have an existing housing tax.
• You got a transit tax. You have an existing housing tax.
• Families have to keep buying clothes, and then you tax them, tax them, tax them.

Bills: HF3279 , HF1879 , HF1417 , HF2462

Committee: House Housing Finance and Policy

Transcript Highlights:

• Furthermore, interest accrued on these accounts would be tax exempt.
• That they have earned, and we shouldn't tax those.
• tax rates in the nation.
• By reducing personal income tax rates for the middle class, California can promote a more equitable tax
• But they do pay taxes. They pay a lot of taxes.

Summary: The Assembly Committee on Revenue and Taxation met under suspense-file procedures, with the chair explaining limits on testimony, position letters, and that bills with fiscal impacts of $150,000 or more would generally be sent to suspense rather than voted on immediately. Several bills were pulled from hearing, and a consent calendar of committee bills later passed 4-0. AB 761 by Addis, the only item initially slated for a vote, was ultimately held over to the next hearing. The committee heard testimony on a series of tax-related proposals. AB 232 would create catastrophe savings accounts for homeowners to save pre-tax money for wildfire, flood, or earthquake-related expenses; it drew support from the Department of Insurance and the California Bankers Association, but was sent to suspense. AB 1443 would exempt tips from state income tax for five years and was supported by the California Restaurant Association and a restaurant owner, but also went to suspense. AB 1435 would provide relief to businesses and property owners facing cleanup and security costs from unauthorized encampments and illegal dumping; it received broad support from business, real estate, trucking, retail, and local government representatives, and was referred to suspense. The committee also heard AB 1428, which would create a California Affordable Child Care Fund financed by a 0.5% tax on income above $10 million; child care workers and SEIU-backed witnesses supported it, while taxpayer and business groups opposed it as harmful to competitiveness and affordability. AB 691 proposed a tax credit for adopting shelter pets and covering veterinary costs, AB 1219 proposed a middle- and low-income personal income tax cut, AB 1354 proposed a credit for increased homeowners insurance premiums, AB 19 proposed an education savings account/voucher-style program, and AB 567 proposed insurance rate stabilization and related tax/fund changes; each drew testimony for and against where present, but all were referred to suspense. The meeting ended with the committee adjourning after the held-over AB 761 item was postponed.