Committee reports qualified‑entity income tax out with 4‑2 vote after amendment debate

Cochair Fields presented HB 350, described in committee as a new qualified‑entity income tax that would apply to certain pass‑through entities at a 9.4% rate above a 25% threshold. The committee considered four amendments: G.1 was withdrawn; G.2 (which deleted an informational return requirement) was adopted after the sponsor and committee discussion; G.3 (which sought to retain language on legacy campaign tax credits) was withdrawn after legislative legal services explained the credits dated to an old income tax and might create confusion if left on the books; and G.4 (a proposed delayed effective date) was withdrawn by its mover.

Representative Colom, who sponsored the amendments on behalf of some members, explained concerns about informational returns and consultation on effective dates. Legislative legal services attorney Emily Nauman explained the history of the campaign tax credits and why the committee had considered repealing them in the bill draft.

Representative Fields moved to report HB 350 out of committee as amended with individual recommendations and accompanying fiscal notes. On the roll call, the committee recorded four yeas and two nays: Representative Freer (Yes); Representative Carrick (Yes); Representative Colom (No); Representative Sadler (No); Cochair Fields (Yes); Cochair Hall (Yes). By a vote of 4 yeas and 2 nays, the committee reported HB 350 out of committee with individual recommendations and fiscal notes; the bill will proceed with the reported recommendations.