Revenue

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February 28, 2022 - Week 4

by Josie Koehne, Revenue Coordinator


Important Revenue-related and Tax Credit Bills

On Feb 24, HB 4055A – engrossed bill passed unanimously in Senate Finance and Revenue with a do-pass recommendation. This bill funds the Harvest tax but added a new section, to section 5 to fund mitigation as required in the Private Forest Accord (PFA). This section is revoked once the $250 million cap fund is reached or the incidental-take permit has been issued, whichever occurs first. A second reading on the Senate floor was held the same day and a third reading was scheduled for Feb 28 and was expected to pass.

SB 1502 The Private Forest Accord small woodland owner tax credit passed unanimously out of Senate Finance and Revenue on Feb 24 and had a second reading on the Senate floor on Feb 25. The third reading is also scheduled for March 2. The credit compensates the small woodland owner upon harvest for the timber not harvesting, when they reserve a wider riparian buffer than required to match the commercial timber no-cut zone.

No action in House Revenue has happened since Feb 10 on HB 4043 that would provide a tax credit intended to maintain low-income housing by giving the credit to multi-unit owners who sell to new owners that pledge to maintain low-income rents for 30 years.

HB 4054 is the historic property tax credit that work group put forward to improve the use of the credit to limit the program for property tax special assessment of historic property to commercial property. The -8 replaced the bill entirely by extending the existing tax break and continues the work study to refine the bill. The -8 was adopted and the bill passed with a do-pass recommendation on Feb 24, and a second reading on the Senate floor was held Feb 25, and the third reading was scheduled for Feb 28.

4115 with the proposed -3 amendment is a bill on the state’s financial investment transparency, which the League supports in this testimony, had a work session on Feb 25. The bill passed along party lines. Please see the details in this week’s climate emergency LR.

SB 1501 is the main policy bill for the Private Forest Accord (PFA) that directs the State Board of Forestry to adopt a single rule package on or before November 30, 2022 to implement the Private Forest Accord Report. On Feb 25, a work session was held in the Joint W&Ms and another was scheduled on Feb 26 at 1 PM where it was very likely to pass. After rule-making by the Board, there will be funding needed to implement the recommendations in this bill to implement the Private Forest Accord, including a PFA Mitigation Advisory Committee. The State Fish and Wildlife Commission will establish by rule the Private Forest Accord Grant Program, which will also need to be funded. And funding will be needed for an Independent Research and Science Team as an advisory committee to the Board.

SB 1524, is an omnibus tax credit bill that includes several provisions that would have a big impact on revenue. Please see our previous legislative reports on the details in this bill. It was adopted with the -17 amendment and passed unanimously on Feb 23 with a do pass recommendation and had a second reading on the floor on Feb 25, and the third reading was scheduled for Feb 28. The League was opposed to several tax credits in this bill including extending the film credit used by wealthy taxpayers to reduce their tax liability, and Gain Share, which should have sunset dates and go through the normal tax credit review committee.

The State Bank Referral -HJR 205 had a public hearing in the House Rules Committee on Feb 22, but a work session has not been scheduled, so this bill is probably dead.