Senate committee backs bill to require timely permit reporting to Department of Revenue

Senate Local Government Committee members voted Feb. 28 to advance SB404, a bill that would require local governments or the Department of Labor and Industry to forward building and electrical permits to the Department of Revenue (DOR) field office where a property is located within one month.

Senator Dave Fern, sponsor of SB404, opened the hearing by citing a legislative audit that, he said, “estimated DOR missed about 14% of residential new construction market value annually” and that the auditors “estimated that the department missed an average of 300,000,000 in new construction market value each year.” Fern said the bill is a short, targeted change intended to make DOR’s existing appraisal work more complete and to help ensure property owners pay their fair share.

Informational witnesses included Paula Gilbert, administrator of the DOR property assessment division, Austin Powell, lead author of the legislative audit, and Eric Copeland, Bureau Chief for Building and Commercial Measurements at the Department of Labor & Industry (DLI). Gilbert told the committee many counties already send permit records to DOR on a voluntary basis, while DOR staff search DLI’s website for electrical permits in areas that do not provide them; she said the bill would allow DOR to receive those records electronically and reduce staff time spent manually searching for permits.

Powell, who led the audit cited by the sponsor, confirmed the findings Fern read into the record about the gap between permit‑based captures of new construction and the amount the audit identified as unreported during the review period.

Committee members asked technical questions about how the current voluntary process operates, whether DLI maintains a searchable public record of electrical permits, and how the change would be implemented in rural counties that lack building departments. Gilbert said the DOR already receives many permits voluntarily and that DLI posts electrical-permit information online; Copeland said DLI’s data are available and that an electronic feed would make the process easier for DOR staff.

Senator Fern moved an amendment (removing references to specific DOR field‑office names to reflect office consolidations) during executive action. The committee approved the amendment by voice and moved SB404 as amended to a 'do pass' recommendation. The record notes one negative vote on the final voice tally (Senator Trevis recorded as voting nay). The committee’s action advances the bill to the next stage of the legislative process.

The bill’s fiscal note was reported as $0; Fern told the committee staff and capacity already exist to accept and process electronic permit records. The committee did not adopt any additional policy riders or reporting requirements beyond the one‑month transfer requirement enacted by the bill.