It’s the afternoon of the last day of the legislative session – a good time to take a quick inventory about what has been finished in terms of tax and local funding issues, and what is still unresolved.
- The noncontroversial policy work of the tax conference committee was passed as HF 1298. This bill includes federal conformity items, provisions about changes to maintenance of effort requirements for local governments, clarification of nonprofit property tax exemptions, and a range of other public finance, local development and technical policy provisions.
- Yesterday, the House was unable to override the Governor’s veto of HF 885, which included a new 4th income tax bracket, increases in alcohol taxes and a surtax on earnings from charging interest over 15 percent.
After moving the noncontroversial tax items into HF 1298, the tax conference committee did not close up shop. In a brief meeting this morning, it was announced that the committee was awaiting instructions from leadership. Issues that could come up include tax changes, but also aids to local governments and tax credits (including the Political Contribution Refund and the Renters’ Credit). By the end of the day, we should know whether the fate of aids to local government and certain tax credits will be determined by a tax conference committee report passed by the legislature, or by the Governor under the unallotment process.