Transcript Highlights:

• tax credit, and a child care provider tax credit.
• they do not have a tax liability.
• A child care contribution tax credit: this is a tax credit for up to 75% of a verified contribution to
• This is a 30% tax credit.
• They're pre-tax accounts.

Committees: House Economic Development , House Joint Committee on Rural Economic Development

Transcript Highlights:

• </c> gas tax and the motor vehicle sales tax gas tax and the motor vehicle sales tax Outdoor<00:14:54.720
• The top three—gas tax, vehicle registration tax, and motor vehicle sales tax—on the top are all constitutionally
• The top three—gas tax, vehicle registration tax, and motor vehicle sales tax—on the top are all constitutionally
• dedicated: gas tax and vehicle registration tax.
• Gas tax, the registration tax, and the other non-constitutional sources.

Committee: Senate Transportation

Transcript Highlights:

• at the retail tax rate.
• It's per barrel; we get severance tax revenue.
• It's per barrel; we get severance tax revenue.
• Yeah, if you have increased production, you're bringing in sales tax and severance tax revenue.
• There will be an increase in the severance tax as production goes up.

Bills: SB1211 , SB1574 , SB2774 , SB2873 , SB2900 , HJR4

Committee: Senate Finance

Summary: The Senate Finance Committee heard several measures, beginning with SB 1574 by Senator Zaffirini, which would codify the Texas Judicial Council’s Centers of Excellence Program for courts and judges. Testimony from judges and the Office of Court Administration emphasized that the program promotes transparency, procedural fairness, mentoring, and public trust. A committee substitute expanded eligibility to justices of the peace and municipal judges and removed a merit-pay reference to eliminate fiscal impact. After quorum was established, the committee adopted the substitute and later voted it out favorably, though it was not certified for the local and uncontested calendar. The committee also heard SB 2774 by Senator Hinojosa, which would amend the Tax Code’s retail trade definition to include industrial uniform and linen rental businesses so they qualify for the lower franchise tax rate. Supporters said the change would put rental textile businesses on equal footing with other rental industries and help Texas employers and customers. The bill was reported favorably to the full Senate. Members then considered SB 1211 by Senator Perry, which would broaden the existing fracking-related sales tax exemption for equipment used with non-fresh water sources, including recycled, produced, and brine water. The bill’s supporters argued it would conserve freshwater and reduce litigation over water definitions, while the Comptroller’s office discussed the fiscal note and production-related revenue effects. The committee also heard SB 2873 and SB 2900, both by Senator Kolkhorst and presented by Senator Nichols; SB 2873 would require electronic filers to file electronically, and SB 2900 would eliminate certain Comptroller-related advisory committees and boards. Both were later adopted in committee substitute form and reported favorably. Finally, the committee heard HJR 4, sponsored by Senator Parker, proposing a constitutional amendment to prohibit new taxes on securities transfers or financial transaction processing. Supporters said it would protect investors, especially retirees, and help position Texas as a financial center. The committee voted to report HJR 4 favorably to the full Senate. In each recorded vote after quorum was present, the measures passed with nine ayes and no nays.

Transcript Highlights:

• </c> filing thresholds on various taxes filing thresholds on various taxes before. before. before.
• Um, it's the tax year beginning January of 2027; the actual taxes would not be hitting until 2028. >>
• Um, it's the tax year beginning January of 2027; the actual taxes would not be hitting until 2028. >>
• </c> surplus funds that came in from this tax surplus funds that came in from this tax to<00:34:43.599
• The one thing I did want to say that's interesting about tax credits at the state versus tax credits

Committee: Senate Ways and Means

Transcript Highlights:

• And then now we have this new tax. And I want you to explain the tax and show the contradiction.
• This is not a new tax.
• This is a new tax. If anything, we're getting rid of a loophole in our current tax system.
• But this new tax is a statewide tax that the state is collecting.
• credit, this tax benefit.

Summary: The committee met to review the governor’s fiscal 2027 budget presentation, with the chair repeatedly asking members to keep questions brief and avoid speeches. The discussion focused first on the overall revenue and spending outlook, including concerns from members that the executive forecast was more optimistic than the JLBC baseline and that the budget appeared to front-load revenue and expenditure growth. The governor’s budget team said the forecast was close to JLBC’s, that the budget was structurally balanced, and that differences were roughly $100 million per year on ongoing revenue. Members asked for follow-up calculations in writing, including the total multi-year gap and the amount of revenue enhancements above base revenues. A major portion of the meeting centered on tax and fee proposals tied to data centers, water use, and sports betting. The governor’s team defended eliminating the existing data center tax incentive as the removal of a loophole rather than a new tax, arguing the incentive had already succeeded in attracting major investment. They also described a proposed Department of Water Resources fee-setting authority for data centers to support a new Colorado River Protection Fund, and said the proposal would apply to existing and future facilities without a grandfather clause. Members raised concerns about fairness, competitiveness, and whether the changes would require a supermajority vote. The team also discussed increased sports betting fees, saying the revenue forecast did not include dynamic behavioral effects. The committee then moved through major spending areas, including corrections, public safety, border security, cybersecurity, K-12 education, Medicaid, and developmental disabilities. The governor’s budget includes ongoing funding to prevent correctional officer pay cuts, money to comply with prison health care court orders, probation funding, body-worn cameras, law enforcement staffing, fentanyl task forces, and cyber readiness grants. Members questioned the lack of funding for a prison oversight committee and asked for corrections spending totals over the administration. On border security, the executive said it was seeking about $759.7 million in federal reimbursement for border-related costs and that the governor had met with federal officials, including Secretary Noem and Tom Homan, about the request. In education, the budget proposes renewing Prop. 123, adding K-12 base funding, and issuing $1.5 billion in school facilities bonds over three years; members debated whether the proposal was appropriate and whether Prop. 123 revenues could support the debt service. The meeting also covered AHCCCS cost growth and federal HR1 impacts, with the executive warning of major coverage losses and hospital funding reductions, and DDD funding, where the governor’s team said the budget fully funds services and includes about $120 million in supplemental needs. No votes were taken; the meeting was a presentation and question-and-answer session only.

Transcript Highlights:

• is a 4% tax credit.
• tax credits.
• They have tax liability, federal tax liability that they use...
• Housing is financed by federal tax credits, including low-income housing tax credits, 9% and 4% tax credits
• They have a sales tax, but more importantly, gross receipts tax.

Committee: House Mortgage Finance Authority Act Oversight Committee

Transcript Highlights:

• Special Committee on Tax Reform will now come to order. Madam Clerk, please call the roll.
• You're taxing my money this morning. All right, I think I understand.
• Just in the last seven or eight years, we have reduced the state income tax.
• We haven't seen the full impact of the tax cuts that we have.
• Consistently, and I think somewhat responsibly, cutting taxes.

Committee: House Special Committee on Tax Reform

Summary: The Special Committee on Tax Reform met in executive session and first took up House Bill 3035, which concerned vehicle valuation for tax purposes. The chair offered an amendment to start the depreciation schedule at 85% of MSRP before applying the bill’s existing depreciation table. Members discussed whether the two-step approach would be confusing, whether it effectively created a larger initial reduction, and whether the language would be implemented correctly in the database used by assessors. The sponsor said he agreed with the change and that the goal was a predictable, standardized depreciation schedule. Some members supported the amendment as an improvement, while Vice Chair Simmons said she still had concerns and would vote present. The committee adopted the amendment, rolled it into a committee substitute, and then voted the House Committee Substitute for HB 3035 do pass by a 5-2 vote with 2 present. The committee then considered House Bill 2945, which was described as redefining capital gains and related terms in ways that could affect a range of assets and transactions. Representative Strickler raised concerns about the bill’s breadth and the lack of a fiscal note for the redefinition, warning that the revenue impact could be significant and uncertain. Representative Simmons argued the bill would let Missourians keep more of their money and supported reducing tax burdens. Representative Butz responded that the legislature had already been cutting taxes through income tax reductions, Social Security exemptions, capital gains changes, and SALT-related relief, and urged the committee to let those changes work through the system before making more adjustments. The committee then voted HB 2945 do pass by a 5-3 vote.

Transcript Highlights:

• Um, we do have other taxes, the business enterprise tax, business profits tax, the rooms and meals tax
• Um, we do have other taxes, the business enterprise tax, business profits tax, the rooms and meals tax
• Um, we do have other taxes, the business enterprise tax, business profits tax, the rooms and meals tax
• </c> the property tax, which is the only tax the property tax, which is the only tax we<01:47:34.480>
• So, what are you planning on income tax. So, what are you planning on taxing? taxing? taxing?

Committee: Senate Education Finance

Transcript Highlights:

• </c><00:35:25.440><c> Housing</c> housing tax credits. Housing housing tax credits.
• </c> to be used for the state housing tax to be used for the state housing tax credit.<00:59:15.520><
• </c> each of our um of our tax expenditures. each of our um of our tax expenditures.
• This doesn't, the double taxed.
• </c> tax revenue will still remain in place. tax revenue will still remain in place.

Committee: Senate Housing and Homelessness Prevention

Transcript Highlights:

• </c><00:02:47.160><c> property</c><00:02:47.600><c> tax</c> under that tax property tax under that tax
• </c> taxes payable in 2026. taxes payable in 2026.
• M1 as an income tax offset.
• M1 as an income tax offset.
• </c> onto the local property tax base. onto the local property tax base.

Committee: Senate Taxes

Transcript Highlights:

• , real estate taxes, real estate taxes, and how can we deal with those?
• If this is a business, it should be taxed as a business, taxed as a commercial business possibly.
• It lets township assessors or entitlement payment on tax... ...to mail the tax payment.
• The intent of that bill was for that property tax freeze to be incorporated in all tax levies within
• It was on with the taxing taxes office, Social Security.

Summary: The House convened with prayer and the Pledge of Allegiance, then approved the House Journal for the 40th day by roll call vote, 122-1. Members used points of personal privilege to recognize the departure of Scott Bell and to honor the life of Ernie Dempsey of St. Charles, and the chamber welcomed numerous special guests, including Child Advocacy Day participants, school groups, local civic leaders, and visitors from across the state. The main floor business centered on House Bill 3239, which would make the Missouri Workforce Diploma Program permanent and move it into the MOCAP framework with a $4 million annual cap and pay-for-performance funding. Supporters said the program has helped about 1,200 adults earn diplomas, especially women and parents needing flexible online access, while opponents argued it would divert foundation formula money from K-12 students and duplicate existing adult education options. An amendment adding a college admissions and financial aid task force was offered but failed, 55-82; the previous question was then ordered, and HB 3239 was perfected and printed. The House also perfected and printed House Bill 1786, which would prevent county assessors from reclassifying single-family homes used as short-term rentals from residential to commercial for tax purposes. Supporters framed it as a property-rights and tax-relief measure for homeowners and small LLCs, while opponents raised concerns about local control and the line between mom-and-pop rentals and larger business operations. House Bill 2944, dealing with the senior property tax freeze, was amended to clarify that the freeze applies across taxing districts and to simplify annual filing and notification requirements; a later amendment was ruled out of order, and the bill was perfected and printed as amended. The House then moved to announcements and recessed until 2 p.m.

Transcript Highlights:

• or the luxury vehicle tax.”
• “The sales tax part of it was relatively clear. The use tax was not.
• It's a combo of fuel taxes.
• would apply to the luxury tax.
• tax.

Bills: HB2495

Committee: Senate Transportation

Keywords: vehicles, streetcar operation, public safety, urban regulation, transportation

Transcript Highlights:

• We didn't put in effect in the tax bill. There is no tax break on...
• In the tax bill, there is no tax break on gas, and we know that our people are suffering, that gas is
• Changes to the sales and use tax.
• And it also allows for the tax collector to also waive those commissions on that tax collection.
• When you ask your constituents, would you rather have a tax break on gas or a tax break on guns?

Transcript Highlights:

• fuel tax.
• We’re open to a tax. We think all vehicles should pay a tax.
• And yes, but it’s a sales tax. So why can’t the sales tax go to the roads?
• And yes, but it's a sales tax. So why can't the sales tax go to the earth?
• That's a state tax, as a state tax per gallon tax. It's a state tax.

Summary: The committee first took up SB 1114, which would appropriate $1 million to the Maricopa County Attorney’s Office to investigate patient brokering in behavioral health and substance abuse treatment. Sponsor Sen. Werner described patient brokering as a continuing abuse tied to the state’s Medicaid fraud crisis, especially affecting Native Americans, and said the county attorney had the capacity to handle statewide oversight. The bill was moved and received a do pass recommendation on a 9-0-1 vote. The committee then considered SB 1111, as amended by a strike-everything amendment, to create statewide rules for automated license plate readers. Supporters from law enforcement said ALPRs are important for investigations, missing persons, stolen vehicles, and violent crimes, and argued the bill adds needed guardrails and training requirements. Opponents, including the ACLU, Institute for Justice, and private citizens, warned the systems enable mass surveillance, can be inaccurate, and raise Fourth Amendment and privacy concerns; they also objected to broad terms like “legitimate” law enforcement purposes and the lack of a clear retention limit. The committee adopted the amendment and then gave SB 1111, as amended, a do pass recommendation by a 7-2-1 vote. Next, SB 1116, as amended, was heard to require behavioral health claim denials and appeals at AHCCCS to be reviewed by someone with relevant clinical experience. Sen. Werner said the bill responds to improper denials and appeals handled by staff without behavioral health expertise; AHCCCS was neutral but said the bill could create compliance and staffing issues because “relevant clinical experience” is not well defined. The committee adopted the amendment and passed the bill 10-0. SB 1122, also as amended, would bar AHCCCS from requiring prior authorization or 100% prepayment review for certain behavioral health services under the American Indian Health Plan unless a provider is on a corrective action plan; Werner said it was aimed at ensuring providers are paid and reducing patient brokering. The committee adopted the amendment and passed SB 1122 10-0. Finally, the committee heard SB 1072, which would appropriate ongoing state and Medicaid funds to DES for rate increases for home- and community-based services and room-and-board services for individuals with intellectual and developmental disabilities, with reporting on workforce outcomes. Supporters from APAD and providers said the direct care workforce is in crisis, with large numbers of vacancies, overtime costs, and unassigned authorizations, and argued the funding is needed to retain staff and maintain care. Members discussed wage disparities, whether funds would reach caregivers, and the limits of legislative control over private provider pay, but no vote on SB 1072 was reached before the transcript ended.

Transcript Highlights:

• Tax credits that are targeted to support low-income earners like the working families tax credit are
• fairness in our tax system.
• Most states exempt health care from sales tax or gross receipts tax altogether.
• Most states exempt health care from sales tax or gross receipts tax altogether.
• the necessary changes in Tax.

Summary: The committee first took up HB 195, as amended by committee substitute, which would protect the personal assets of individual medical providers from medical malpractice judgments when they carry appropriate insurance or participate in the Patient Compensation Fund. The sponsor said the bill was intended to address providers’ fear of losing homes and other personal property, while opponents argued it could exempt a class of people from civil justice. Supporters said it was a reasonable compromise that preserved patient access to justice while helping recruit and retain providers. The committee adopted the substitute and advanced it on a do pass vote. The committee then heard HB 295, a revised version of the Accessibility Act, which would create a centralized office for accessibility reporting, technical assistance, and annual reporting on barriers in state buildings and websites. Supporters said the bill would improve coordination, data collection, and compliance with existing ADA requirements; opponents argued it duplicated existing law and would create another government office without enforcement power. Members debated whether the Governor’s Commission on Disability should handle the work instead, but the sponsors said the commission lacked capacity and the Department of Health was a better fit. The committee adopted the substitute and advanced it 8-1. Next, HB 296 proposed doubling the working families tax credit. The sponsor and supporters described it as an anti-poverty measure that would benefit more than 200,000 families and strengthen work incentives, while committee members asked about the fiscal impact, administration, and interaction with other tax credits. The bill was quickly advanced on a do pass vote. The committee then heard HB 338, which would extend the gross receipts tax deduction for health care providers through 2031 and add co-insurance payments. Health care advocates supported it, but city and municipal representatives warned it would reduce local revenue unless a full hold harmless was added. After extended discussion, the committee rejected a motion to table and instead advanced the bill 9-0 with no recommendation, with several members saying they would not support it on the floor unless local governments were made whole. Finally, the committee heard HB 259, which would create an optional actuarial review process for proposed health insurance legislation through the Legislative Finance Committee. Supporters said it would give lawmakers better data on premium, utilization, and spending impacts before voting on coverage mandates; opponents and some members raised concerns about cost, staffing, data access, and whether the process would be too limited to be useful. After discussion, the committee advanced the bill on a do pass vote. HB 279 was rolled at the sponsor’s request, and the committee adjourned after reminding members about the evening dinner.

Transcript Highlights:

• receipts tax.
• To the personal income tax, I'll go to slide 22.
• Tax contracted by 29.
• The corporate tax, what's the percent that oil and gas pays under the corporate tax? Mr.
• On the tax increases or a tax package, is that recurring? Does that go under recurring?

Committees: Senate Senate Finance , Senate House Appropriations & Finance

Transcript Highlights:

• Another thing I mentioned is federal tax legislation: expiration of the Tax Cuts and Jobs Act.
• Our team—we are not tax experts.
• , and this is federal tax status.
• You also have state tax exemption.
• is federal tax status you also have state<00:53:43.760><c> tax</c><00:53:44.119><c> exemption</c><00

Committee: House Capital Investment

Transcript Highlights:

• </c> tax rate system portal. tax rate system portal.
• </c> able to set the tax Great. able to set the tax Great.
• a tax effort to go up over 20%.
• The budget doesn't go over the tax cap. The first warrant article doesn't go over the tax cap.
• </c> complaints about um property taxes. complaints about um property taxes. &gt;&gt; Yeah.

Committee: Senate Election Law and Municipal Affairs

Transcript Highlights:

• There are some a bigger tax credit.
• </c><00:44:47.119><c> credit</c> accepts some sort of a uh tax credit accepts some sort of a uh tax credit
• </c> Find all the places in the tax codes that call for veteran tax credits, and let's make sure that
• </c> uh DRRA to find out what the average tax uh DRRA to find out what the average tax bill<01:08:51.279
• </c><01:12:52.800><c> credit</c> keep that house with $4,000 tax credit keep that house with $4,000 tax

Committee: Senate Election Law and Municipal Affairs

Transcript Highlights:

• </c> not being taxed by the M&amp;R tax. not being taxed by the M&amp;R tax. &gt;&gt; Okay.
• </c> subject to this tax. subject to this tax.
• </c> challenged for room meals tax? challenged for room meals tax?
• </c> how that works out in terms of tax how that works out in terms of tax taxes.<03:56:24.319><c> I<
• </c> &gt;&gt; with a tax credit? &gt;&gt; with a tax credit?

Committee: House Ways and Means