Small tax changes proposed to recover modest revenue, Legislative Finance says about $467,000 annually

Senate Bill 164, presented Feb. 23 by Sen. Kelly Merrick, packages several tax code changes drawn from the state's indirect expenditure report with the stated aim of streamlining government and recovering modest revenue.

Merrick called SB 164 a "simple tax bill" and said Legislative Finance and the Department of Revenue identified several small deductions and filing credits to reconsider. Dan Stickel, chief economist for the Department of Revenue, and Connor Bell, a fiscal analyst with Legislative Finance, described the statutorily required indirect expenditure report and how Legislative Finance reviews compiled data and issues recommendations.

Sorsha Hazleton, staff to Sen. Merrick, walked the committee through the bill's sections and the Department of Revenue estimates: eliminating the motor fuel timely‑filing credit (estimated recovery ~$68,000), ending the tobacco products tax deduction (~$52,000), removing the cigarette stamp tax discount (combined sections estimated at ~$308,000), and repealing the tire fee timely‑filing discount (~$38,000). Hazleton summarized: "In total, this bill recovers roughly $467,000 which is not a lot, but it's something." The staff packet lists background from the 2021 indirect expenditure report and page citations in committee materials.

Committee members asked no substantive follow‑up in the hearing and SB 164 was set aside for further consideration at a future meeting.