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Ways and Means committee approves HB 155 as amended after split over timing of tax cut
Summary
The House Ways and Means Committee voted 11-9 to advance House Bill 155 as amended, changing the bill's effective date and prompting debate over projected revenue impacts and timing for local governments.
The House Ways and Means Committee voted 11-9 to recommend HB 155 as amended, moving the bill forward with a change to its effective dates that delays implementation to the tax year beginning 2027.
Committee members debated whether delaying or advancing the tax cut would produce or remove state revenue at a time when local governments face tight budgets. Supporters of the amendment said the delay gives the Legislature time to monitor revenue receipts and, if necessary, repeal the change before it takes effect. Opponents said the change would reduce revenues when municipalities already face service pressures and noted long-term revenue declines adjusted for inflation.
Representative Ullery offered the amendment that changed the effective date to tax year 2027; the clerk recorded the amendment's passage, 11 to 9. Representative Eulary moved the committee recommendation “ought to pass as amended” (OTPA); Representative Murphy seconded. The roll call on OTPA produced the same 11-9 margin, and the committee reported the bill as OTPA as amended.
During debate, members disagreed about the fiscal trajectory if taxes are cut. Representative Ulrey said, “every time this committee or the body has cut taxes, revenues have eventually increased,” framing the amendment as a cautious delay to observe revenue behavior. Other members stressed that inflation and federal COVID-related funding complicate interpretation of recent revenue trends and warned that local services could be strained if revenues decline.
The amendment specifically changes the act’s effective dates; the sponsor described the change as moving the act’s implementation so it would take effect in tax year 2027 rather than sooner, and noted language that the act’s effective date would be six months prior to July 1 in the specified tax year. The committee assigned a majority report to Representative Ullery; minority reporting was discussed but not finalized during the session.
Implications: The committee-level recommendation advances HB 155 to the full legislative process with the amended effective date, but opposition on the committee signals the measure may face contested floor debate. The amendment’s timing change is intended to provide an additional fiscal cycle to confirm revenue estimates and allow repeal if receipts are materially different from current projections.
Votes at a glance: The committee approved amendment 2025-2983h by vote of 11–9 and later approved HB 155 OTPA as amended, 11–9.
What’s next: The bill will proceed with a majority report and a recorded minority position; any floor amendments or further fiscal analyses will affect final enactment.
