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Committee advances bill capping municipal revenue from fines and forfeitures; amendment to raise cap fails
Summary
House Bill 140, dubbed the "local taxation by citation" act, was passed by the House Governmental Affairs Committee. The measure would cap a municipality's revenue from fines and forfeitures at 10% of the city's budget (effective Jan. 1, 2026); an amendment to raise the cap to 20% failed in committee.
Representative Gullett presented House Bill 140, described in committee as the "local taxation by citation" act, saying the bill would cap at 10% the share of a city's revenue that can be funded by fines, both criminal and civil, and redirect any excess to the state. "What this bill does is it takes the revenue generated from fines, both criminal and civil, that cities, municipalities, collect, and it caps at 10%. And so once the city has gone over or collected more than 10%, then that money, would then go to the state," Gullett said. The sponsor set an effective date of Jan. 1, 2026.
Gullet…
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