Senate rules meeting advances annual revenue substitute aligning state tax treatment with recent federal changes

Senator Huffsteller, speaking to the Senate rules meeting, presented the substitute for House Bill 1199 as the committee’s annual update to state revenue laws. "This is our annual update," he said, adding the substitute was negotiated with appropriations and lieutenant governor staff to approach revenue neutrality.

The substitute makes the state conform with recent federal rules on taxing tips and overtime that the House did not accept in earlier language, and it keeps low-income thresholds consistent with 2024 levels, the presenter said. Committee members asked for clarification on a few technical points; Huffsteller said the changes reflect agreement among finance and appropriations staff.

The committee moved to pass the substitute LC590418S, and members approved it by voice vote. The committee record shows the motion carried unanimously.

The action sends the substitute forward from the rules/standing meeting; staff and interested parties were noted as available for follow-up questions.