Finance committee advances package of tax, broadband and marine-lease bills

A legislative finance committee advanced a set of tax and policy measures Wednesday, approving bills that extend and clarify tax exemptions, limit certain tax credits and exempt state-owned oyster-lease improvements from local property taxes.

The committee approved a bill to allow an exemption from ad valorem taxes for a qualified homeowner who is an honorably discharged veteran aged 90 or older and to extend that exemption to "the unremarried, widow of the veteran," the chair said. The chair explained the change takes effect for exemptions claimed in 2026 with reimbursements made in 2027 and characterized the measure succinctly: "So we're just adding the surviving spouse of the, 90 year old, just, honorably, discharged veteran, from ad valorem taxes." The committee approved the bill by voice vote and reported it out.

Senator Johnson said the committee approved changes to short-term rental tax collection. Explaining House Bill 919, Johnson said the bill clarifies state code so the definition of "hotel" "will include third party apps or vendors, that broker in things like a VRBO or Airbnb," and places the responsibility for collecting and remitting the tax on the platform rather than on an out-of-state homeowner. Senator Kirby asked whether a reverse repealer was included; Johnson answered that the House version did not include the reverse repealer and the committee declined to keep the Senate-added reverse repealer. The committee passed HB 919 by voice vote.

On House Bill 1644, Senator Johnson said the committee extended repeal dates for broadband tax credits, established minimum technical standards for what counts as installed broadband, and "puts a cap on the amount of the tax credit" to prevent open-ended state liability. Johnson also described a prohibition on companies "double dipping" by using federal grants and then claiming state tax credits and said the bill sets an installation window from 06/30/2025 to 07/01/2030 so credits apply only to projects meeting contemporary minimum standards. The committee approved HB 1644 as amended.

A House bond bill (HB 1894) returned to the committee with an amendment from institutions of higher learning that increased a listed amount from $3,500,000 to $5,500,000 and adjusted other line items; the chair said the reverse repealer already in the bill remains. The committee adopted the amendment and passed the bill.

Senator Johnson said House Bill 1901 would extend new market tax credits and noted the House increased the annual cap from $15,000,000 to $16,000,000 compared with a prior Senate version. The committee passed HB 1901 and will report it out.

Senator Thompson explained House Bill 1095, which would exempt from county and municipal taxes leases granted by the Department of Marine Resources for on- and off-bottom oyster leases. Thompson said the state owns the water bottoms and that "anything that's put on the bottom stays on the bottom and remains property of the state," so counties would otherwise face assessment and retraction work; he said the bill is endorsed by the assessors and collectors association and that he had letters of no opposition from the Jackson County and Harrison County tax assessors. The chair noted the vote on HB 1095 was "not a unanimous vote," but the motion carried and the bill was reported out.

Votes at a glance

- Veteran homestead exemption (surviving spouse): Motion passed by voice vote; tallies not specified; reported out. - HB 919 (short-term rental/"hotel" definition; platform collection): Motion passed by voice vote; tallies not specified; reported out. - HB 1644 (broadband tax credits: repeal-extension, minimum standards, cap, anti-double-dipping; installation window 06/30/2025–07/01/2030): Motion passed as amended by voice vote; tallies not specified; reported out. - HB 1894 (house bond bill; amendment increasing $3,500,000 to $5,500,000 and other line edits): Amendment adopted and bill passed by voice vote; tallies not specified; reported out. - HB 1901 (new markets tax credits; cap increased from $15,000,000 to $16,000,000 in House version): Motion passed by voice vote; tallies not specified; reported out. - HB 1095 (oyster-lease exemption from county/municipal taxes): Motion carried by voice vote (not unanimous); tallies not specified; reported out.

What this means

The measures move to the next stage of consideration after the committee's voice approvals. Several of the bills change how local taxing authority or state tax-credit programs operate: one clarifies platform responsibility for lodging taxes, another tightens and caps broadband credits while tying eligibility to installation standards and a set timeframe, and HB 1095 would prevent counties from having to assess state-owned oyster-lease improvements.

The committee rose and reported its actions; the bills will be forwarded for further legislative action.