Chairperson Smith opened the discussion on SB33. 

Adam Siebers provided a document (26-rs-3401) that is the proposed change to the countywide sales tax apportionment formula. (Attachment 23)

Chairperson Smith proposed the amendment that would require the apportionment of sales tax revenue between cities and counties based on tax levied by each city and county. Chairperson Smith noted the use of total assessed valuation rather than the actual property taxes still retains the 50.0 percent based on population.  The equation looks at the total assessed valuation instead of property taxes levied.  Chairperson Smith stated Research provided at the February 26, 2026 meeting the impact on every county and city and noted there are some cities and counties that are winners and losers.

Committee discussion ensued.

Representative Sawyer made a substitute motion for SB33 to adopt the amendment but delay implementation until next calendar year and continue the freeze, seconded by Representative Hoheisel.

Committee discussion ensued.

Representative Sawyer closed on his substitute motion for SB33. Motion carries.

Representative Hoheisel moved, seconded by Representative Xu, the Committee recommends House Substitute for SB33 favorably for passage as amended. Motion carries.

Chairperson Smith adjourned the meeting.

Next scheduled House Taxation meeting is March 3, 2026.