Lawmakers are considering legislation that would expand the range of taxing options available to counties and cities, prompting discussion among local governments, businesses, and community stakeholders. Two measures, HB 2442 and HB 1702, are central to this debate during the current legislative session.
HB 2442 is scheduled for a hearing in the House Finance Committee and proposes broad authority for local governments to adopt new revenue tools. Under the bill, counties and cities could impose a county utility tax of up to 3 percent, expand the use of real estate excise taxes, and create targeted sales taxes to fund priorities such as housing, children’s services, and behavioral health programs. The proposal also includes a limited veterans’ levy and a 1 percent tax on rental cars, with revenues directed toward stadiums, youth sports facilities, and elements of the criminal justice system.
HB 1702, which would also establish a county utility tax, is a carryover measure from the previous legislative session. The bill is currently in the House Rules Committee and is eligible to be brought forward for a vote by the full House of Representatives.
Supporters of the proposals argue that additional local revenue options could help communities address growing service demands and infrastructure needs. Opponents raise concerns about the cumulative impact of new and expanded taxes on consumers and employers.
WR has expressed opposition to proposals that would further increase the tax burden on retailers, emphasizing the importance of maintaining a stable and competitive business environment while lawmakers consider approaches to local funding challenges.
