Senate committee reports bill to restore state free-filing service after questions about duplicative cost

The Senate Resources Committee voted 9-5 to report Senate Bill 1306, a measure to establish a free tax-filing program through the Department of Taxation, after debate about whether the state should fund a service available elsewhere.

Senator McDougall told the committee he was worried the state would pay for services taxpayers already receive: “I'm concerned about us spending money for something that can be done already,” he said, and added that “most commissioners, if not all commissioners of the revenue, will provide the service for free if you go to their office.” He also noted that for many paid tax-preparation platforms the IRS Free File program is available up to an income threshold of $84,000.

Senator Deeds, speaking in reply, said the bill would return state practice to how it operated before July 1, 2010: “We are just returning the law to its state prior to 2010. We provide this a free service at the state level for every year prior to 2010. We're simply returning there.”

Committee members moved and adopted amendments and then voted to report the bill as amended; the clerk recorded the vote as Ayes 9, Noes 5. Committee discussion included that many local commissioners’ offices provide in-person free filing assistance and that availability through commercial free-file platforms exists up to certain income thresholds, but committee members disagreed about whether a state-funded filing portal is necessary.

The bill was reported out of committee with amendments and will continue through the Senate legislative process.