Transcript Highlights:

• For the tax year 2027 and each tax year thereafter, a credit against the tax imposed by sections 10-3
• quarterly or annual tax payments.
• The tax credit may be claimed on one or more subsequent quarterly or annual tax payments beginning on
• For each tax year through the tax year 2026, a credit against the tax imposed by sections 10-3-209 and
• Fees function like a hidden tax. I know the good taxpayers know this. We go from taxes to fees.

Transcript Highlights:

• So we're moving it to say personal property tax or property tax. Thank you.
• So we are looking to remove the ability to say no tax increase tax proposal.
• Tax incentives or abatements must decrease the levy for real property tax or for real property owners
• is a school tax.
• The cost of doing a radio ad or a newspaper ad is the same in November as it is in April.

Summary: The House convened with prayer, the Pledge of Allegiance, and approval of the House Journal by roll call vote, 120-0. Members then used personal privilege and guest introductions to recognize several groups and visitors, including Alpha Phi Alpha members, students from multiple schools and programs, dental hygienists, public administrators, credit union representatives, National History Day participants, and others. One member also spoke emotionally about a relative killed in a domestic violence incident and requested a moment of silence in her honor. The main floor action centered on House Committee Substitute for House Bills 2780 and 2668, a large property tax reform package. The sponsor described it as the product of extensive statewide hearings and public testimony, aimed at stabilizing Missouri’s property tax system. The bill and amendments would, among other things, require clearer ballot language for tax measures, move tax-related ballot questions to November general elections, eliminate “no tax increase” wording, standardize ballot wording, address assessment and valuation rules, require physical inspections for certain commercial property assessment increases, allow quarterly tax payments in more counties, and make other technical changes. Members debated the size and scope of the bill, local control concerns, voter turnout and “voter fatigue,” and whether the changes were sufficiently vetted. Amendments were adopted to narrow the title to property taxation, add the ballot-language provisions, remove duplicative language, and exempt township counties so their levy elections could still occur on the schedule they need. The House then adopted the substitute as amended and ordered it perfected and printed. The chamber also took up House Bill 1917, a targeted utility/economic development bill involving a Jefferson County water district. The sponsor said the bill was prompted by a dispute in which a water district sought payment or infrastructure contributions from a company planning a roughly $400 million investment and about 250 jobs, despite the district’s inability to serve the site. Supporters said the bill would allow detachment of a ratepayer under specified conditions and prevent water districts from blocking development; the committee vote had been 15-0. Members raised concerns about the bill’s narrow, district-specific scope and possible litigation, but the House ultimately ordered the bill perfected and printed. The House also read three new bills for first reading and later recessed after announcements about committee meetings and a property tax discussion event with FFA students.

Transcript Highlights:

• and bullion B&O tax and sales and use tax exemptions; and the billing discounts public utility tax credit
• Next, House Bill 1060 added a new requirement for businesses claiming a B&O tax exemption for publishing
• This preference was added to an existing sales and use tax preference for anaerobic digesters, which
• and one against the property tax.
• Rather than waiting 10 years and adopting a 10-year chunk of new reviews, adding one year of tax preference

Committee: Joint Citizen Commission for Performance Measurement of Tax Preferences

Summary: The Citizen Commission on Tax Preferences met on May 7, 2025, with quorum present and first approved the October 22, 2024 meeting minutes. The Attorney General’s office then provided the annual open government refresher, reviewing key requirements of the Public Records Act and Open Public Meetings Act, including broad disclosure obligations, records retention, response procedures for public records requests, and meeting rules for quorums, executive sessions, and notice requirements. Staff then reviewed the 2025 legislative session, noting 23 tax-preference bills passed, with five signed by the governor at that time. Highlights included legislation extending or repealing several preferences, adding reporting requirements for newspaper and digital content tax exemptions, and creating a new exemption for zero-emission buses. The commission also approved updates to the 2026 tax preference review schedule, which includes eight preferences in seven reviews, and approved unchanged 2025 testimony questions for use in future reviews. JLARC staff presented the 2025 expedited tax preference review report covering 52 preferences, using Department of Revenue studies and prior JLARC work rather than full new reviews. Staff also outlined development of the next 10-year review cycle for 2027-2036, including a possible rolling schedule approach, with legislative input to be sought over the coming months. The meeting concluded with thanks and recognition of Ron Buing’s service as he steps off the commission, and no public comment was received.

Transcript Highlights:

• So by adding trigger locks, that's just an expansion of the same tax expenditure and is not considered
• So by adding trigger locks, that's just an expansion of the same tax expenditure and is not considered
• So by adding trigger locks, that's just an expansion of the same tax expenditure and is not considered
• So by adding trigger locks, that's just an expansion of the same tax expenditure and is not considered
• So by adding trigger locks, that's just an expansion of the same tax expenditure and is not considered

Committee: Senate Taxes

Transcript Highlights:

• tax policies contained within the federal tax bill.
• He added that a constituent recently told him that if they conformed to the federal tax bill, it would
• The CBO produces tax incidence for federal taxes.
• We have a 9.875% sales tax. You have some payroll taxes. You may have some income tax.
• </c> sales tax. You have some payroll taxes. sales tax. You have some payroll taxes.

Committee: House Workforce, Labor, and Economic Development Finance and Policy

Transcript Highlights:

• plus $1,342 RTA excise tax, so that total of taxes are...
• If you put a camper shell on the back of your pickup truck, there's no RTA tax added to the license.
• tax.
• price RV and added $22,000.
• If you put a camper shell on the back of your pickup truck, there's no RTA tax added to the license.

Summary: The committee held public hearings on three transportation-related bills on February 2nd. House Bill 2305 would exempt travel vans from the motor vehicle excise tax by distinguishing them from motor homes; staff said the Department of Revenue saw no fiscal impact, while the Department of Licensing estimated a $129,000 one-time system update cost and an indeterminate revenue impact. Representative Keaton sponsored the bill, and the lone testifier, Dennis Rhodes, argued that travel vans should not be taxed like motor homes and said the current tax unfairly applies to accessories and interior build-outs. House Bill 2601 would create a new motorcycle weight-fee category with a $15 fee instead of the current $35 fee. Staff estimated about 190,000 annual transactions and roughly $3.8 million per year in lost revenue to multimodal transportation accounts, plus about $20,000 in Department of Licensing programming costs. Representative Richards described the bill as a fairness issue for riders, and the only testifier, Larry Walker of ABATE of Washington, supported the measure as more equitable because motorcycles do not weigh anywhere near 4,000 pounds and the implementation date would give the state time to adjust. House Bill 2604 would remove notarization requirements for certain vehicle title-transfer documents used when an insurer totals a vehicle, allowing electronic or printed signatures for those limited transactions. Staff reported no fiscal impact from the Office of the Insurance Commissioner or the Department of Licensing. Representative Richards said the bill would reduce burdens on people in rural areas and others without easy access to notaries or transit, and testimony from Copart representatives and Robert Foley supported the bill as a consumer-friendly way to speed title processing and payment after total-loss claims. After closing public testimony on the last bill, the committee adjourned and moved to caucuses.

Transcript Highlights:

• And so I'm sorry. an business enterprise tax return. an business enterprise tax return.
• </c><00:18:12.799><c> I</c> uh tax any changes to the tax codes.
• I uh tax any changes to the tax codes.
• </c> had the $98 million in business taxes had the $98 million in business taxes that<00:23:37.280><c
• combined business enterprise tax and business profits tax surplus equals $100 million or more.

Summary: The meeting began with unanimous committee approval of amendment 2026-2021S to HB 2. Senator Lang explained the amendment corrected a drafting error so that $2.5 million in state funds, matched with federal money for a total of $5 million, could be spent during the biennium rather than lapse at the end of the fiscal year. The money is intended to stabilize Medicaid per diem rates for county nursing homes, and members agreed without objection to adopt the amendment and continue working from the bill as amended by the Senate. The committee then discussed HB 155 and a proposed amendment, 2026-201H, dealing with the business enterprise tax. The House side described the proposal as a compromise that would raise the filing threshold from $250,000 to $375,000 and create a trigger that would reduce the BET rate by 0.05% for each $100 million in combined business tax surplus, down to a floor of 0.25%. Senate members opposed lowering the rate at this time, arguing that tax relief should focus on the filing threshold, which they said would remove filing burdens for about 3,500 small businesses, and that rate cuts should be considered in a budget cycle rather than an off-year. Concerns were raised that one-time revenues, such as tax amnesty receipts or federal repatriation-related surpluses, could unintentionally trigger reductions. Representative Sweeney later offered a revised approach by moving the effective date of the trigger mechanism to January 1, 2028, and said he was also willing to carve out tax amnesty revenues or adjust the effective date to avoid using one-time funds. The Senate remained unwilling to agree to a rate reduction, though it expressed openness to raising the filing threshold further. The committee ultimately did not resolve the business tax issue and recessed to continue discussions at a later time. The final item discussed was HB 1102, concerning an increase in the research and development tax credit paired with changes to state park fees. House members supported the R&D credit increase but opposed tying it to higher park fees, citing concerns about tourism, especially at border parks, and noting that the Department of Natural and Cultural Resources had said it did not need the increase. Senate members defended the park fee changes as a fairness issue, arguing that New Hampshire residents should pay less than out-of-state visitors and that the department had not raised rates in many years. No vote was taken on this item during the discussion captured here.

Transcript Highlights:

• Districts may impose up to three regular property tax levies.
• could be done outside of the city tax.
• These tax dollars make sense.
• Less than 15% of the areas added to the UGA are critical resource areas.
• The areas added are suitable for urban growth.

Summary: The Senate Local Government and State Parks Committee heard several bills focused on local government finance, land use, and public safety. SB 5903 would deem a cemetery district commissioner elected if only one qualified candidate files, with sponsor Senator Cortez saying it would save ballot-printing costs and local resources; there was no testimony in opposition. SB 6037 would create or modify a voter-approved option for cities and towns to form a single-city fire protection district, adjust levy and notice rules, allow administrative service contracts with the city, and clarify commissioner elections; Senator Cortez and multiple city and fire officials said it would give communities more flexible, locally controlled funding tools for fire service, while committee members asked about how it would work and the fiscal impact. SB 5983 would exempt certain current-use land transferred to a government entity for right-of-way from rollback taxes when the transfer is tied to development conditions and stays within a 20% acreage limit; Senator Leas described it as helping a family farm avoid an unfair tax bill, and there was no testimony on the bill. The committee also heard SB 5995, which would remove the 2031 sunset on the prohibition against using port funds to buy fully automated marine container cargo handling equipment. The sponsor and labor witnesses argued the bill protects jobs, keeps public dollars from underwriting automation, and still allows zero-emission, human-operated equipment; port and labor representatives testified in strong support, while the sign-in sheet showed substantial public interest both for and against. SB 6016 would change how urban growth area swaps treat critical aquifer recharge areas, making the rules for annual and periodic updates more consistent and allowing swaps if they do not increase net CARA acreage within the UGA; the sponsor, Commerce, housing, business, and development interests said it was a technical fix that supports housing and consistency, while one witness warned it could weaken groundwater protections and create litigation risk. Finally, the committee heard SB 6066, which would let counties, cities, towns, or WSDOT designate “accident risk zones” on roads with repeated crashes, require a public hearing and engineering review, double certain traffic penalties in the zone, and dedicate half the extra revenue to safety improvements before dissolving the zone. Supporters from cities, counties, and Pasco said it could help address dangerous intersections and fund fixes, though several witnesses raised liability and implementation concerns and asked for further stakeholder work. No votes were taken in the transcript; the chair closed each hearing after testimony and sign-in counts were noted.

Transcript Highlights:

• And some of these taxing jurisdictions are very, very small, especially with special taxing and there
• And some of these taxing jurisdictions are very, very small, especially with special taxing districts
• And some of these taxing jurisdictions are very, very small, especially with special taxing and there
• And some of these taxing jurisdictions are very, very small, especially with special taxing districts
• But with tax, well, that one should never be with tax.

Committee: House Special Committee on Property Tax Reform

Transcript Highlights:

• So we're moving it to say personal property tax or property tax. Thank you.
• We are looking to remove the ability to say no tax increase tax proposal.
• So there is no opportunity if a taxing entity wants to raise a tax or pass a bond.
• a school tax.
• The cost of doing a radio ad or a newspaper ad is the same in November as it is in April.

Summary: The House convened with prayer and the Pledge of Allegiance, then approved the House Journal for February 10, 2026 by roll call vote, 120-0. Members then used personal privilege and guest introductions to recognize fraternity members, students, advocacy groups, and other visitors. One member delivered remarks honoring Alpha Phi Alpha Fraternity, and another gave a personal statement about a cousin who died in a domestic violence-related murder-suicide, followed by a moment of silence. The main floor action focused on House Committee Substitute for House Bills 2780 and 2668, a major property tax reform package. The sponsor described the bill as a broad effort to stabilize Missouri’s property tax system after extensive statewide hearings and testimony. The bill and amendments addressed issues including clearer ballot language for tax measures, moving tax-related ballot questions to November general elections, prohibiting “no tax increase” ballot descriptions, standardizing ballot wording, changes to assessed valuation and inspection rules, quarterly tax payment options in some counties, and a fix to a CPI-related provision. Members debated the size and scope of the bill, concerns about local control, election timing, voter fatigue, and possible litigation. Amendments were adopted to narrow the title, add clear ballot language, exempt township counties from the election timing requirement, and remove duplicative language. After the previous question was ordered, the committee substitute as amended was adopted and ordered perfected and printed. The House also perfected House Bill 1917, a Jefferson County-specific water district bill. Supporters said it would allow detachment of a ratepayer from a water district under certain conditions so a large manufacturing project could proceed, describing the district’s demands as obstructive to economic development. The bill passed committee unanimously and was ordered perfected and printed after discussion about the federal loan issue, the district’s refusal to cooperate, and whether the measure should be limited to one district or expanded later. The chamber then moved to announcements, including upcoming committee meetings, a property tax issues presentation by FFA students, birthday wishes, and a recess until 2 p.m.

Transcript Highlights:

• tax receipts.
• not speak specifically to property taxes.
• Those revenues would include property taxes as provided by the Constitution, local business tax as provided
• by statute, as well as communication services tax and the municipal utility service tax.
• We've gotten rid of sales tax, rent tax, business sales tax.

Summary: The Committee on Community Affairs met with a quorum present and took up SB 122, which would repeal Chapter 205 on local business taxes while allowing municipalities to continue imposing a gross-receipts-based business tax on merchants. Senator Trumbull presented the bill for the sponsor, and committee members questioned what services local governments fund with local business tax revenue and whether the bill should be considered alongside broader property tax changes. County and city representatives opposed the bill, arguing that local business taxes are capped home-rule revenues used for general fund services such as public safety, zoning and licensure checks, economic development, and business support, and warning that repeal would shift costs to residential taxpayers and reduce local flexibility. Senator Shreve said he would vote no because of ongoing property tax discussions, while Senator Pizzo said he would support the bill but wanted clearer accounting of how the revenue is spent. The committee voted 5-1 to report SB 122 favorably. The committee then held a housing panel discussion focused on Florida’s housing shortage, affordability, and supply constraints. Dr. Samuel Staley said Florida is in a housing crisis driven largely by insufficient supply, arguing that the state needs roughly 100,000 additional units per year just to keep up with in-migration and that local planning systems often do not prioritize housing enough. He urged more emphasis on measurable impacts, streamlined permitting, accessory dwelling units, smaller lot sizes, and other market-responsive tools. Ann Ray of the Shimberg Center said Florida is seeing more single-family and multifamily construction but that production is concentrated in a handful of counties, while condo construction remains limited; she also noted that rents and home prices spiked sharply in the early 2020s and remain above pre-2020 levels, with nearly 905,000 low-income renters cost-burdened. Leslie Deutsch of John Burns Research said the national housing market is slow, Florida has a severe affordability problem, and builders are lowering prices and offering incentives but still face high land, labor, materials, and insurance costs. In committee discussion, senators focused on whether Florida should encourage more density, including townhomes, build-to-rent products, modular housing, and redevelopment of existing sites rather than relying on large new subdivisions. Members also discussed the role of local zoning, impact fees, density bonuses, and state incentives tied to housing targets. Several senators said Florida’s growth and affordability challenges require updating land development codes and planning for where future residents will live without overbuilding rural or environmentally sensitive areas. The chair closed by emphasizing that density can support affordability and that Florida should use existing footprints more efficiently.

Transcript Highlights:

• increase it by the added size for this new project, and we consider the one year of extra tax exemption
• The first is the local sales and use tax for housing and related services. The tax rate is 0.1%.
• This tax is credited against the state tax.
• This tax is credited against the state tax.
• The commission administers the federal low-income housing tax credit program and issues tax-exempt revenue

Summary: The committee held a public hearing on a series of housing, education, workforce, and court-related bills. On Substitute Senate Bill 5884, staff described changes to a sales and use tax deferral for redeveloping vacant or underused land into affordable housing, including broader eligible property definitions and lower affordability thresholds in designated areas. Testimony was mixed: builders opposed language they feared could encourage project labor agreements, while Spokane and Kent representatives supported the bill but asked for flexibility on affordability mix requirements. On Senate Bill 6256, which expands a property tax exemption for nonprofit low-income rental housing to include certain co-located community uses during construction and extends the pre-construction exemption period, testimony was strongly supportive from housing nonprofits and local housing partners, with questions focused on clawback provisions. The committee also heard Substitute Senate Bill 6027, which expands allowable uses of local housing and supportive housing sales tax revenue, adjusts a REET exemption timeline, broadens emergency housing definitions, and changes use of the Affordable Housing for All account. County, housing, and nonprofit witnesses said the bill would help preserve housing and services amid federal funding uncertainty, though Snohomish County asked for an amendment to allow rental assistance. Substitute Senate Bill 6018 would revise the Housing Finance Commission’s authority, including direct lending and bond counsel terms; commission staff said it would modernize outdated restrictions and improve financing flexibility. Substitute Senate Bill 6028 would create a revolving loan fund for mixed-income homeownership projects; supporters said it would help smaller infill projects pencil, while staff noted the loans would be subordinate and carry some risk. Later, the committee heard Senate Bill 6275 on the community reinvestment program, which would require periodic plan updates, reporting, and a WSIPP study, while also expressing legislative intent to continue at least $100 million annually in the account. Advocates, workforce groups, legal aid providers, and small business owners testified that the program supports communities harmed by past disinvestment and should be made permanent and more accountable. Substitute Senate Bill 5961 would move the Imagination Library program from DCYF to OSPI; early literacy advocates and local partners supported the transfer as better aligned with school readiness. Substitute Senate Bill 5969 would integrate IEP transition plans with high school and beyond plans, and a prior critic said amendments addressed her concerns. Second Substitute Senate Bill 5292 would shift PFML premium rate-setting to the annual actuarial report and raise the reserve target; labor and industry witnesses supported the change, while a policy group opposed the program’s costs. The committee also heard Senate Bill 5868 to add one superior court judge each in Skagit and Yakima counties. Judges and county officials testified that caseloads, population growth, and backlogs justify the additions, and county leaders said they had already budgeted for their share. Finally, Substitute Senate Bill 5827 would allow service members to use pre-discharge certification to claim veterans’ civil service preference; the sponsor said it would solve a timing problem for transitioning service members. No votes or final committee actions were taken in the transcript, as the meeting consisted of bill briefings and public testimony.

Transcript Highlights:

• </c> reference tax base. reference tax base.
• the tax.
• ex two tax evaluation of two tax ex two tax exemptions<00:08:22.319><c> from</c><00:08:22.479><c> the
• c><00:21:22.559><c> child</c><00:21:22.880><c> tax</c> tax expenditures related to child tax tax expenditures
• tax ra tax tax from Minnesota income tax ra tax tax rate<00:32:16.240><c> brackets</c><00:32:16.720><

Committee: Senate Taxes

Transcript Highlights:

• But now I'm going to put an ad on Google. And guess what? We're going to tax your ad on Google.
• And then we're going to tax any other ad you want to do. Mr.
• So I paid my way. ads. You're going to get taxed on that.
• But now I'm going to put an ad on Google. And guess what? We're going to tax your ad on Google.
• And then we're going to tax any other ad you want to do. Mr.

Summary: The House debated a series of amendments to a major income tax bill, with repeated arguments over tax fairness, affordability, administrative feasibility, and the role of the Department of Revenue. Early motions to reconsider a failed child care amendment were rejected, and Amendment 2561, which would have restricted data sharing with the IRS, was also defeated after debate over privacy, federal relationships, and whether the proposal was administrable. Amendment 2579, which would have required annual reporting on the tax’s effects on filers, businesses, and charitable donations, likewise failed, with supporters emphasizing transparency and opponents arguing DOR was not the right agency and the report was too speculative. Amendment 2598, proposing to use half of new revenue for a broad sales tax cut, was rejected despite arguments that it would reduce regressivity and provide immediate relief; Amendment 2556, expanding sales tax exemptions for diapers and other child-care essentials to include adult diapers and earlier implementation, also failed after debate over scope and timing.

Transcript Highlights:

• It also uses tax abatement and use of tax increment financing districts.
• These tax credits and tax incentives are choking Missouri, and they're sending us down the wrong path
• when we added the rural component.
• Okay, this is how tax credits, I think, should be structured in that a private investor This is how tax
• You know, you and I have discussed, for instance, low-income tax and how we get added benefit to that

Summary: The Legislative Rules Committee held a public hearing and then executive session on Senate Bill 1694, along with related Senate Bill 1688, which together would modernize and expand the Missouri Downtown and Rural Economic Stimulus Act (MODESA). Senator Steve Roberts said the bills would increase flexibility for redevelopment projects, broaden financing tools, extend timelines, and expand residential incentives, with no general fund risk. Supporters, including lobbyists for the Cordish Companies, the City of Kansas City, the City of St. Louis, Greater St. Louis Inc., Historic Revitalization for Missouri, and BioSTL/Next Missouri, argued the program has already helped transform downtown Kansas City and St. Louis and could spur major redevelopment such as Ballpark Village, Power & Light, the Millennium Hotel area, the AT&T Tower, and the Railway Exchange Building. They emphasized private investment, local control, and the potential to bring vacant buildings back onto the tax rolls. One witness, the state public advocate, opposed SB 1694, arguing it would create more bureaucracy and political subdivisions, rely on tax abatements and TIF-like tools, and shift costs to taxpayers. Committee members asked questions about the bill’s residential language, the history of MODESA projects, the fiscal note, and whether the incentives could apply to other downtown sites. Supporters clarified that the committee substitute removed a proposed income-tax incentive, reduced some escalators, and retained a voluntary, opt-in structure for cities. The chair also noted that stadiums themselves are excluded, though surrounding areas may qualify. In executive session, the committee adopted a substitute and voted 10-0 to do pass the House Committee Substitute for Senate Substitute for Senate Committee Substitute for Senate Bills 1694 and 1688. The committee then voted 8-2 to do pass Senate Substitute Number 2 for Senate Committee Substitute for Senate Bill 1586, sponsored by Senator Brown, and 8-0 with two present votes to do pass House Committee Substitute for Senate Substitute for Senate Bill 889, which the chair described as a large cleanup bill removing obsolete statutes. The committee then adjourned.

Transcript Highlights:

• agency, and number five, well, not number five, and adding the FIT seat, somebody within the tax department
• ><c> or</c> somebody within the tax uh department or somebody within the tax uh department or somebody
• </c> the Internal Revenue code federal tax the Internal Revenue code federal tax law<00:55:42.119><c>
• </c><00:55:50.760><c> exemp</c> financed with such proceeds tax exemp financed with such proceeds tax
• </c> don't even have the benefit of tax don't even have the benefit of tax increment<00:56:57.640><c>

Summary: The committee heard several measures, beginning with SB 1061 on digital equity. Testimony was strongly supportive, including from Rosie Davis of the Maui County Area Health Education Center, who said Molokai and Maui need better digital access for telehealth and clinic services. Members discussed whether the bill should be consolidated with other digital broadband measures and asked about funding; the chair noted the draft used general funds but said federal money was now available for the navigator program. The committee later recommended SB 1061 be passed with an SD1, technical amendments, and an effective date of July 1, 2050, with members voting aye. The committee then heard SB 135 on macadamia nut labeling. Hawaiian Host Group and several supporters argued the bill would help align the industry around a processing solution and support growers and jobs, while the MacNut Association and Hamakua Macadamia Nut Company opposed it, saying the state lacks enough processing infrastructure and that existing law already covers labeling. In questioning, members focused on the lack of a current processing facility and the timeline for a new one on Hawaiʻi Island. After hearing mixed testimony, the committee deferred the bill indefinitely. The committee also considered SB 1657 and SB 1539 relating to the Agribusiness Development Corporation. Testimony on both measures was generally supportive, with ADC describing the Wāhō water system as serving about 5,000 acres and over 70 farmers, mostly small and medium growers, and saying the proposal would help expand service without asking for more water. The committee later voted to pass SB 1657 and SB 1539 with SD1s, technical amendments, and a July 1, 2050 effective date. Finally, the committee took up SB 891 on economic development and gaming. The hearing drew extensive testimony, including support from Boyd Gaming and Stanford Carr Development, and opposition from Native Hawaiian speakers who said Hawaiians must have a seat at the table and raised concerns about self-determination and outside control. Members questioned the scope of the proposed gaming working group, the number and makeup of members, and the need to review prior gaming bills and studies. In decision-making, the committee passed SB 891 with an SD1 and major amendments: adding tourism references, changing expense reimbursement rules so private gaming representatives pay their own expenses, expanding the working group to include Native Hawaiian, social services/behavioral health, DBEDT, law enforcement, and tax/professional expertise seats, deleting one proposed seat, and adding a July 1, 2050 effective date. The committee also reported that the recommendations were adopted by vote.

Transcript Highlights:

• tax cuts. ...about tax cuts and the importance of making sure that we're prioritizing tax cuts.
• We don't want the tax cut conversation to be an afterthought, that we will cut taxes if we have enough
• money to cut taxes; prioritize how we're allocating the money so that we can cut taxes.
• , or if it’s corporate franchise taxes, or if it’s really that sales tax?”
• “It’s sales tax, ma’am.

Committee: All JOINT BUDGET COMMITTEE

Transcript Highlights:

• And referred to the Senate Health, Public Affairs Committee, then Senate Tax, Business, and Transportation
• title, is ordered printed and referred to the Senate Health, Public Affairs Committee, then Senate Tax
• Soules, an act relating to professional psychologists, amending the Professional Psychologist Act, adding
• title, is ordered printed and referred to the Senate Health, Public Affairs Committee, then Senate Tax
• Adding human trafficking to the definition of racism.

Transcript Highlights:

• To start with, I've gotten the same emails about wealthiest Vermonters got $57,000 in an added tax decrease
• To start with, I've gotten the same emails about wealthiest Vermonters got $57,000 in an added tax decrease
• the VIP tax.
• /c> regularly saying to tax them or tax the regularly saying to tax them or tax the wealthy wealthy wealthy
• </c> the tax revenue because we're not taxing the tax revenue because we're not taxing people people

Transcript Highlights:

• For open space categories, back taxes called additional tax represent the tax benefit received over the
• reliance on regressive taxes throughout our tax code.
• Well, just like tariffs are taxes, taxes are also taxes. So they have to be borne by somebody.
• She added that Washington’s tax system, and the country as a whole, reflects two very different economies
• She added that hospitality is a high-volume, low-margin sector and that Washington’s tax system is especially

Summary: The committee held public hearings on several bills. HB 2140 would exempt land sold or transferred to a governmental entity from additional tax when removed from open space classification in certain circumstances. Staff explained the current use property tax system and said the bill would likely have minimal but indeterminate revenue effects, with about $30,000 in one-time Department of Revenue costs. Representative Lowe said the bill was intended to fix a niche problem where a farmer loses a small frontage strip to a county and is then charged back taxes despite no change in land use. FutureWise testified in support of the bill’s intent but asked for small language changes to ensure transferred land remains compatible with agricultural or open space use. The public hearing on HB 2140 was then closed. HB 2326 would allow a fire protection district that is partially overlapped by another district’s EMS levy to impose its own levy on the portion not already covered, subject to voter approval in the affected area. Staff said the bill would have no state general fund impact and about $28,000 in one-time Department of Revenue costs. Fire district and fire chief representatives testified in support, describing situations in Clark County and Kittitas County where most residents cannot vote on an EMS levy because a small overlapping area already has one. Opponents, including Washington Citizens Against Unfair Taxes, argued the bill would add to property tax burdens. The hearing on HB 2326 then closed. HB 2334 would require rounding of cash transactions to the nearest five cents as pennies are phased out of circulation, while leaving non-cash payments unchanged. Staff said the bill would apply to the final total after taxes and fees, with an indeterminate but minimal state revenue impact and significant Department of Revenue implementation costs. The prime sponsor said the bill was needed because the federal government ended penny production without giving states guidance. Retail and grocery groups generally supported the concept but requested amendments for clarity, consumer protection, SNAP compliance, and flexibility while pennies remain in circulation; one witness opposed the bill as another tax burden. The hearing on HB 2334 was then closed. The committee then heard HB 2100, a proposed statewide payroll expense tax on large operating companies to fund a new Well Washington Fund for higher education, health care, cash assistance, energy, and housing. Staff said the proposed substitute would apply to employers with at least 250 employees and $7 million in annual payroll, exclude certain public and health care entities, and generate substantial revenue, with the fiscal note estimating about $7.6 billion to the general fund and $4.2 billion to the new fund in the 2027–29 biennium under the revised threshold. Supporters, including poverty, housing, labor, education, disability, and faith advocates, said the bill would help offset federal cuts and protect vulnerable residents. Business, retail, hospitality, construction, and technology groups opposed it, warning of job losses, higher costs, reduced competitiveness, and broader impacts on consumers and employers. The prime sponsor said the bill was a response to federal divestment and that the state needed a progressive revenue source now; no vote was taken in the transcript.