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Lawmakers advance broad tax-modification cleanup bill; committee debates SALT treatment and fiscal impact
Summary
House Bill 77, a multi-topic tax cleanup bill covering income, sales, property and privilege-tax items, received a favorable recommendation after committee discussion about a $4 million fiscal impact tied to state and local tax (SALT) changes and the pass-through workaround.
The Senate Revenue and Taxation Committee voted Feb. 2, 2026, to favorably recommend House Bill 77, a broad tax-modification bill described by the sponsor as the committee’s annual cleanup vehicle.
Representative Elison, the bill sponsor, outlined provisions across income, sales and use, property, and privilege taxes. Key changes include clarifying how unrelated business income is treated for charities (adding allocated income), repealing an obsolete federal-dependent inheritance tax (Title 59, Chapter 11), consolidating privilege-tax exemptions for convenience, integrating low-income housing…
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