Transcript Highlights:

• </c> investments, our corporate tax credits. investments, our corporate tax credits.
• So the land and the buildings and the other electrical equipment are still added to the local tax base
• to the local equipment are still added to the local tax<01:02:53.680><c> base.
• And this bill is strictly a tax. >> This is just the tax portion.
• </c> strictly a tax. strictly a tax.

Bills: HF1669 , HF4709 , HF3531 , HF4048

Committee: House Taxes

Transcript Highlights:

• credits and tax-exempt bonds.
• And those are that tax-exempt bond and low-income housing tax credit allocation is generally resources
• And those are that tax-exempt bond and low-income housing tax credit allocation is generally resources
• ><c> to</c><01:27:46.239><c> go</c><01:27:46.360><c> down</c> tax rate to go down tax rate to go down
• So, tax rates are uniform across jurisdictions, but commercial properties are often taxed at a higher

Committee: Senate Commerce

Transcript Highlights:

• So when you have county tax rates, you have Have county tax rates, you have cooperative school districts
• If there's 10 buildings that are tax exempt and they decide this year we won't give them tax exemption
• It involves property taxes, and roughly how much property taxes do you collect every year?
• It did not have a vestibule setup, and so we're going to be adding a vestibule to ensure... ...adding
• Maybe adding a voice.

Transcript Highlights:

• to the tax base immediately.
• c> development uh is added to the tax Bas development uh is added to the tax Bas immediately<00:02:51.480
• but when tax equant immediately but when tax equant financing<00:02:53.000><c> is</c><00:02:53.200><
• </c><00:03:12.360><c> that</c> district is active all the taxes that district is active all the taxes
• </c> occur so when a an authority uses tax occur so when a an authority uses tax inment<00:03:49.959>

Committee: Senate Taxes

Transcript Highlights:

• In FY 2025, 45% of road fund revenue came from motor fuels taxes, 38% from motor vehicle usage taxes,
• c> up</c><00:05:03.360><c> 6%,</c> motor vehicle license taxes made up 6%, motor vehicle license taxes
• Motor vehicle usage tax the year.
• In addition to the fuels taxes, motor vehicle usage, the weight distance tax, income on investments,
• </c> adding $12.8 million to the surplus. adding $12.8 million to the surplus.

Summary: The Budget Review Subcommittee for Transportation met without a quorum at first, then later approved the July 15 minutes by voice vote after quorum was reached. The committee heard an update from the Transportation Cabinet on the road fund for FY 2024-25. Cabinet staff reported road fund revenue came in $38.5 million above the enacted estimate, with motor vehicle usage tax receipts setting an all-time high for the fifth straight year. Motor fuels tax revenue was below estimate and down from the prior year, while overall road fund collections totaled $1.86 billion, essentially flat year over year. Staff said the road fund ended FY25 with a $61.6 million surplus, which under the budget bill must be appropriated to state construction. Members discussed the gas tax formula, with Senator Higdon arguing it no longer works well because revenues fall when fuel prices fall, and the chair noting the committee may need to revisit the formula. The committee then received an update on High Growth County projects in the 2024 highway plan. KYTC said $16 million in HGC authorizations had been made, nine projects already had construction funds authorized or were otherwise underway, 12 more were scheduled to be let by the end of 2025 with estimated construction costs above $250 million, and one additional project was expected to be awarded through alternative delivery. The cabinet said it anticipated authorizing the full $450 million appropriated by the General Assembly. Members praised the effort and emphasized the need to get projects to market before the next budget cycle. Jason Sala of KYTC also explained why transportation projects take time, citing planning, design, right-of-way acquisition, and utility relocation as major steps that can delay delivery. He said these processes are complex and require coordination with property owners, utilities, consultants, contractors, and local governments. Eric Pelfrey then briefed the committee on professional and personal service contracts, saying they are used to expand cabinet capacity for design, inspections, right-of-way appraisal, safety, and related work. He reported that authorizations and payments for these contracts have trended upward over the past decade, and that the number of contracts has also increased. In response to questions, Pelfrey said design-build can speed some projects by overlapping steps, but it does not eliminate right-of-way or utility work when those are required; he said KYTC has been using alternative delivery more often, but project complexity still limits how quickly work can move.

Transcript Highlights:

• We added a few clarifying things, and I think the things that we added were very good.
• So this being a tax credit is really a high burden or high hurdle to get.
• And this tax credit expires, say, within 10 years.
• So then you have a relatively small window to actually take advantage of this tax credit.
• The fact that these tax credits are transferable makes it a much more effective program.

Committees: House Commerce , House Commerce, Consumer Protection, Energy and the Environment

Transcript Highlights:

• </c><00:35:18.000><c> and</c> and tax uh, excuse me, board of tax and and tax uh, excuse me, board of
• </c> property taxes. property taxes.
• Uh, these are the business profits tax, business enterprise tax, the tobacco tax, and the real estate
• , the tobacco tax, and the enterprise tax, the tobacco tax, and the uh<05:37:12.240><c> real</c><05:37
• Plus plus the tax credit. Plus the tax Plus plus the tax credit.

Summary: The committee of conference for HB 1 and HB 2 reviewed the side-by-side budget comparison and began working through agreed and disputed items. Members first confirmed that grayed-out items were already settled and discussed a process for making later technical and intent changes, especially to true up abolished positions after additional decisions were made. They then moved through several budget sections, including judicial branch reductions, retirement systems, the Department of Justice, the Human Rights Commission, liquor enforcement, corrections, and the Department of Information Technology. Several items were agreed to or treated as settled package items, including the judicial branch position, the Department of Justice reduction, the Human Rights Commission item being held until related HB 2 language is finalized, the Housing Appeals Board being moved into the Board of Tax and Land Appeals, and the Office of Child Advocate. The committee also agreed to update the House bill language as needed based on HB 2 decisions, and to keep certain IT support rows in place unless related boards and commissions are eliminated. The effective date remained July 1, 2025, with no change. The main unresolved discussion centered on the retirement systems budget, where the Senate defended a large increase for deferred IT security and investment-function improvements, while the House argued the increase was too large and favored a back-of-the-budget cut. The Senate said the funds would support strategic IT and investment changes and would remain in the trust if cut, while the House emphasized the size of the increase and suggested a compromise. The committee ultimately retained the Senate position on retirement systems for the moment and said it would return to the issue later. On corrections and liquor enforcement, the committee described a negotiated back-of-the-budget cut structure, including a $10 million cut for corrections with some restoration of POS offices and administrative aides, and a liquor enforcement cut that was treated as part of a broader package. The Department of Safety item related to commercial enforcement and motor vehicle inspections was held for later discussion. The meeting ended with several items agreed, several held for coordination with HB 2, and some major budget questions still open.

Transcript Highlights:

• radio<00:47:59.440><c> ad</c><00:47:59.680><c> was</c> radio ad was radio ad was I<00:48:01.160><c> have
• </c> committee and I approve this ad. committee and I approve this ad.
• that it taxes individuals?
• I'm also not a tax expert. &gt;&gt; I'm not sure. I'm also not a tax expert.
• in adding that line And and adding that in adding that line is<00:55:54.080><c> a</c><00:55:54.120><

Committee: Senate Elections

Transcript Highlights:

• California has successfully taxed products to fund related remediation. California's tobacco taxed.
• taxes on electronic commerce.
• It is off to tax. Our jurisdiction is not to write that tax fund.
• is funded by that tax?
• Gross receipts tax, of course. Perfect for you. I would say gross receipts tax, of course. Perfect.

Summary: The committee first heard AB 56, which would require social media platforms to display a warning label about potential mental health harms from prolonged use, with amendments shortening the initial warning and allowing immediate access to the platform. The author and supporters, including a parent who lost a daughter to suicide and a therapist, argued that social media contributes to teen anxiety, self-harm, and other harms and that families need clearer public health information. Opponents from tech and civil liberties groups argued the bill would be ineffective, burdensome, and likely unconstitutional, saying it would create warning fatigue and should be replaced by more targeted tools and digital literacy measures. Several members discussed emergency access concerns, language access, and whether the warning should be more actionable; the bill was moved on a 9-0 vote to the Judiciary Committee. The committee then took up AB 358, which would amend CalECPA to allow law enforcement, with the victim’s consent, to inspect certain abandoned tracking or surveillance devices found in a victim’s home, vehicle, or personal property without first obtaining a warrant. The author and a San Diego prosecutor said the bill is narrowly tailored to devices used solely for spying and is intended to help stalking and domestic violence survivors act quickly before evidence is lost. Opponents from EFF and the ACLU warned the bill would weaken warrant protections, create a loophole around CalECPA, and reduce transparency and accountability. Members debated Fourth Amendment issues, abandonment, and the practical need for rapid access; the bill passed the committee on a 9-0 vote to Appropriations. The committee also heard AB 1137, which builds on last year’s CSAM reporting law by allowing any user to report child sexual abuse material, requiring clearer reporting mechanisms, adding human review in some cases, and mandating third-party audits and public reporting. Supporters, including survivor advocates and a parent of a child victim, said the bill would reduce the burden on survivors and improve removal of abusive content. Tech industry opponents said they support the goal but objected to the human-review mandate, public audit disclosures, and enforcement provisions, arguing they could create security risks and compliance burdens. Members generally supported the bill’s intent but raised questions about audit frequency and human review; the bill was moved on call with seven votes at the time of the transcript.

Transcript Highlights:

• Um, we've added an OTB in downtown Louisville, and in 2023 we added sports wagering to our menu.
• </c> with this design along with an ad with this design along with an ad agency.<00:03:19.440><c> Um,
• > in</c><00:04:15.439><c> downtown</c> we've added an OTB in downtown we've added an OTB in downtown
• </c><00:04:19.120><c> sports</c> Louisville and in 2023 we added sports Louisville and in 2023 we added
• Uh, that excise tax, those tax rates, are taxed on the adjusted gross revenue, which is what Representative

Summary: The committee approved the minutes from its August 21 meeting and then received an update from Kentucky Horse Racing and Gaming Corporation leadership on implementation of Senate Bill 299 and House Bill 566. Jamie Eids and staff described the agency’s new structure after charitable gaming was brought under the corporation, including new divisions, staffing, banking, payroll, insurance, procurement, and reporting systems. They also unveiled the corporation’s new logo and tagline, and said the transition had been designed to avoid interruption for charities, licensees, and racing operations. A major focus was the fee structure required by House Bill 566. Eids outlined current licensing fees across racing, sports wagering, and charitable gaming, compared Kentucky’s fees with other states, and recommended keeping the status quo for one more year because the agency has only recently brought all three components fully in-house. Members asked about whether charitable gaming had harmed veterans’ groups or other nonprofits, whether any revenue should be transferred back to the state, and whether the charitable gaming licenses cover one-off raffles as well as standing operations. Eids said she had not heard complaints, said the licenses include all such activity with some exemptions, and agreed to look at the question of future transfers. The committee then heard from Melissa Combs Wright on pari-mutuel wagering and Hannah Sims on sports wagering. They reported continued growth in historical horse racing, more than $11 billion in total pari-mutuel wagering in fiscal year 2025, over $10.5 billion in HHR wagers, and about $161 million in pari-mutuel tax revenue, with most of that supporting the general fund and horse-breeding development funds. They also said sports wagering has generated nearly $5 billion in wagers since launch, $73 million for the public pension fund, and more than $2 million for problem gambling services, while expanding to 13 retail locations and 92 additional sports events. Members raised concerns about players being cut off after winning, the lack of local government revenue sharing from gaming facilities, and the growth of computer-assisted wagering; the witnesses said they were reviewing CAWs and that Kentucky does not license poker rooms through the corporation.

Transcript Highlights:

• and property taxes and then placing yet another burden on the sales tax.
• had to retaliate or lash out was to reject a sales tax.
• the tax rate for the newly combined district.
• Budgets are taxed, call volumes are going up, and we took a deep dive into why people budgets are taxed
• Their retail footprints are small, so they don't generate a lot of tax or property taxes.

Committee: House Local Government, Elections and Pensions

Summary: The committee first met in executive session and unanimously voted Senate Substitute for Senate Bill 914 and House Committee Substitute for House Bill 3467 due pass. HB 3467 was amended before passage; the sponsor said the changes clarified that any tax authority would apply only if a tax change is actually approved, corrected county/city references, and fixed ballot-language issues involving sheltered workshops. Members generally praised the sponsor’s work, though one member noted concern about shifting more burden to sales taxes. The main public hearing was on H.J.R. 107, which would place before voters a constitutional question allowing Jackson County to consider separating Kansas City from the county or otherwise altering its charter government. Sponsor Rep. Steinmeyer argued the measure was about voter sovereignty and local control, citing prior Jackson County ballot measures and saying entrenched local power had blocked reform. Supporters echoed that Jackson County residents were frustrated with representation, taxes, and county governance. Opponents, including Kansas City and chamber representatives, argued the proposal was unnecessary, costly, procedurally unclear, and potentially destabilizing; several members also questioned the 10-year resubmission clause, the exclusion of local officials from the transition process, and the statewide fiscal impact. No action was taken on the resolution during the hearing. The committee then heard Senate Substitute for Senate Bill 975, dealing with ambulance district mergers and community paramedic/mobile integrated health services. Senator Black and supporters said the bill would help struggling rural ambulance districts merge without disrupting billing, contracts, or service, and would expand community paramedic care for low-acuity patients and hospital-at-home models. Several witnesses from ambulance and fire districts described successful programs and said the bill would improve patient care and help rural areas. Opponents, including ambulance and fire district representatives, supported the merger provisions but objected to Senate-added language they said would let districts provide community paramedic services across jurisdictional lines without memorandums of understanding, undermining local control and negotiating power. The hearing ended with testimony still ongoing after a recess for floor session; no vote on SB 975 was reported in the transcript.

Transcript Highlights:

• He added that renters do not themselves have property tax liability, but they certainly pay into the
• He noted that in the European Union they have a value-added tax included in the cost of every good or
• </c><01:05:11.319><c> in</c><01:05:11.559><c> the</c> value added tax which is included in the value
• added tax which is included in the cost<01:05:12.000><c> of</c><01:05:12.279><c> every</c><01:05:12.880
• > 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:

• </c><01:14:18.960><c> Um</c> be taxed. Um be taxed.
• in paying property tax that is excessive, thus adding burden to another town property owners.
• in paying property tax that is excessive, thus adding burden to another town property owners.
• in paying property tax that is excessive, thus adding burden to another town property owners.
• </c> taxes based on 2024 tax rates. taxes based on 2024 tax rates.

Committee: Senate Commerce

Transcript Highlights:

• Vought, we'll hear that we need to continue to give tax giveaways, massive tax giveaways to the wealthiest
• Things like nutrition assistance and the Earned Income Tax Credit and the Child Tax Credit.
• Senator, the President's tax cuts provided tax cuts for all Americans.
• and rationalize the tax code.
• We added 1.7 million jobs.

Committee: Senate Senate Budget

Transcript Highlights:

• Um, I would move that House File 1384 be re-referred to the Committee on Taxes.
• I worked with then Representative and chair of the tax committee Paul Markwart.
• </c> million um uh Care Credit that was added million um uh Care Credit that was added last<00:09:37.959
• </c> with just a general expanded child tax with just a general expanded child tax credits<00:10:01.600
• </c> you know whenever they get their tax you know whenever they get their tax return<00:10:48.639><c

Summary: The committee heard House File 1384, which would create the “Great Start Child Care Tax Credit” by expanding the existing dependent care credit for families with children under age six. The bill would raise the qualifying expense limits for young children, allow more children to qualify, and phase the credit down starting at $125,000 of earned household income until it reaches zero above roughly $400,000. The author said the proposal is intended to better address the high cost of child care, especially for middle-income families who may not qualify for other assistance programs. Claire Sanford of the Minnesota Child Care Association testified in support. She said child care providers across Minnesota have unused capacity because many families cannot afford services, and argued that making care cheaper for families is important for workforce participation and child development. She also supported the bill’s focus on children under five and its expansion of help up the income scale, saying middle-class families have received little assistance with child care costs. Members asked about how the bill differs from current law, the cap for a family with one child age five, and the fiscal impact. The author explained that a family with one child under age six would have a $10,000 cap under the proposal and said a prior fiscal note estimated the bill at about $200 million per year. The author also noted the proposal had been introduced previously and said the Department of Revenue’s new ability to make advance payments could be relevant as the bill moves forward. The author renewed the motion to re-refer HF 1384 to the Committee on Taxes. The committee approved the motion by voice vote, and the bill was sent to Taxes.

Transcript Highlights:

• of the pie, sales tax at the bottom, and then all other taxes, or sometimes you'll see this referred
• Some core sources of revenue: income tax, corporate income tax, sales tax, product tax, and miscellaneous
• Some core sources of revenue: income tax, corporate income tax, sales tax, product tax, and miscellaneous
• The tax collection starts, the Tax Commission starts reporting on the taxes that have come in.
• , corporate income tax, sales tax, product tax, and miscellaneous revenue has come in over the years.

Summary: JFAC began with a presentation from Legislative Services on the general fund and the “green sheet,” explaining how the committee tracks starting cash, revenue forecasts, transfers, appropriations, and ending balances. The analyst walked through general fund revenue sources, the difference between transfers and expenditures, structural balance, and how the green sheet is used to compare current-year collections against forecasts. Members asked about continuously appropriated funds, federal dollars, sales tax exemptions, and cash reconciliation issues tied to the state’s new Luma finance system and interest allocations. The discussion also covered the revenue monitor and how the committee can use it to track collections against forecasted amounts. The committee then moved into the Department of Health and Welfare’s overall budget overview. Legislative Services reviewed the department’s size, organizational structure, vacancy rate, five-year spending trends, and the role of continuously appropriated funds such as the Idaho Children’s Trust Fund and Rural Physician Fund. Members asked about personnel vacancy rates, reverted funds, and whether the department could provide a list of subgrants and trustee-and-benefit payments. Department officials explained that some vacancies reflected a department-wide review, hiring freeze, and FTP realignment, including moving positions to State Hospital South and reverting some federal spending authority. They also said the department was actively filling funded positions and would provide additional information on grants and other payments. The committee then heard the first division-level budget presentation for Indirect Support Services. The analyst described the division’s role in centralized administration, IT, legal, communications, and management support, along with its staffing, historical expenditures, and base budget changes. The division’s budget request included a one-time irrigation system project at State Hospital West, a fund adjustment for the background check unit, the transfer of 58 FTP and related costs to the Office of Information Technology as part of modernization, and a request to remove restrictive budget language on personnel and trustee-and-benefit transfers. The governor’s recommendation also included support for some replacement items and a major new item tied to Idaho’s Rural Health Transformation Program, including 12 limited-service FTP in 2026, ongoing FTP in 2027, and $294 million in one-time operating funds. Members questioned the need for the new FTP, the use of AI, the definition of “rural,” and the mechanics of the IT transfer; department and ITS officials explained the transfer was a budget shift of personnel and operating costs, not a net increase in staffing. The committee adjourned after members also raised broader concerns about public input on Health and Welfare budgets and suggested a joint public meeting with the Health and Welfare committees.

Transcript Highlights:

• This is not a tax law change.
• and would be subject to the tax.
• We are an income tax dependent state.
• and corporate tax reductions.
• Income tax and corporate tax reductions. So it has very much a placeholder for a range.

Summary: The Financial Estimate Committee met on July 6, 2026, to begin work on the financial estimate for IP 28, after reviewing the statutory process and confirming that only IP 28 had cleared the signature threshold for consideration. Staff explained the committee’s duties under ORS 250.125 and the timeline for draft statements, public hearing, and final adoption. The committee also designated Carol Moreno C. Fuentes to file the committee’s eventual statements. Staff from the Department of Administrative Services and the Legislative Revenue Office presented preliminary analysis of IP 28, describing major uncertainties in estimating impacts because the measure is not a tax law change and would affect multiple industries and government functions. Preliminary figures discussed included an estimated $56.5 million loss in the current biennium and $6.7 million in reduced expenditures, with larger projected revenue losses of roughly $244.1 million to $258 million and reduced expenditures of $30.7 million to $34.9 million in 2027–29, plus $87.8 million to $88.3 million in increased expenditures. Analysts said the biggest effects would likely involve agriculture, fish and wildlife, hunting and fishing, local government enforcement, and possible shifts in state funding, but many impacts remained difficult to quantify. Committee members raised concerns about local government costs, law enforcement and prosecution burdens, impacts on the hospitality and recreation sectors, possible effects on tribal governments and treaty rights, and whether the measure would affect shellfish and crabbing. They also discussed the Humane Transition Fund, subsidies, possible litigation costs, and whether the statement should include broader uncertainty language and multiple scenarios. Members generally agreed the draft should be revised to better reflect uncertainty, clarify assumptions, and possibly use bullets or other formatting to improve readability. No vote was taken. The committee agreed to treat the current draft as a working version, with staff to revise it based on the discussion and return an updated draft before the next meeting scheduled for July 17 at 2 p.m., with both in-person and virtual participation available.

Transcript Highlights:

• I mean, going back to 2018, where the first round of President Trump's tax bill, the Tax Cuts and Jobs
• We've had steady and significant policy choices that reduced tax rates, provided additional tax credits
• Otherwise we wouldn't have any taxes.
• So sales tax is still growing.
• And I’m pointing at the range of numbers that the Tax Commission... ...Tax Commission has gone through

Committee: Senate Local Government and Taxation

Transcript Highlights:

• Hopefully the one take-away you get here right off the top is we rely on our tax collector county tax
• We had 3 tax collectors, newly elected tax collector. So Volusia went a few years ago.
• These are the key markets where people are seeing our ads.
• These are places again where people will see our ads.
• You guys probably don't see much of our ads because we don't run ads for the most part with in Florida

Transcript Highlights:

• Because no income tax does not mean no taxes, Mr. Speaker. It means higher sales taxes.
• Again, no income taxes does not mean tax-free.
• The Tax Foundation concludes that income taxes are less pro-growth than consumption taxes.
• The Tax Foundation concludes that income taxes are less pro-growth than consumption taxes because they
• Don't tax my product. Don't tax my service.'