Ways and Means amends housing bill: first-generation tax credit to sunset, short-term rental tax provision removed

Committee counsel Cameron told the House Committee on General & Housing on Wednesday that the House Ways and Means Committee voted a housing package out of committee with amendments and a 10-1-0 vote in favor.

Cameron said the committee recommended two substantive changes: first, the first-generation homebuyer tax credit would be given a five-year sunset (repeal after five fiscal years) where the bill originally proposed no expiration; second, a proposed municipal 1% short-term rental tax in the bill was struck because the Department of Taxes raised concerns about administration and complexity. Cameron said the Ways and Means vote was recorded as 10 yes, 1 no, 0 abstentions.

Cameron explained the rationale given to him in conversations with committee members: lawmakers seeking to limit the long-term fiscal commitment to the first-generation homebuyer credit agreed to a five-year sunset so the program could be reviewed before any permanent expansion. He also said the short-term rental municipal tax was removed after concerns from the tax department about how it would be administered.

Committee counsel described the two substantive amendments as the main changes; he said other drafting fixes were technical and that a new effective-date provision would align the repeal timing. Cameron said Appropriations will consider the amended bill next; sponsors planned a straw poll of committee members on the Ways and Means amendments before the bill reaches the House floor.

Cameron did not identify the bill by a separate bill number in the committee discussion and did not provide details on the fiscal cost of the amendments; those figures were not specified in the update and will be addressed in Appropriations and later floor debate. Cameron said conversations with committee members indicated the amendments do not destroy the bill but reflect compromises to secure committee support.