The House Taxation Committee on Thursday advanced House Bill 20, introduced by Representative Jennifer Brewster, after adopting two amendments and approving the twice-amended bill in executive action by a 16-5 vote.

The measure, as discussed in committee, changes how certain voted levies are structured and how they may adjust for inflation going forward. Under the amendments adopted in committee, levies that are posed to voters as dollar amounts (rather than as mills) may include an optional provision allowing the levy to increase at three-quarters of the prior three-year average rate of inflation; the language as amended does not apply that calculation to existing levies that remain expressed in mills.

Representative Brewster, the bill sponsor, said the first amendment removes references to school funding that had been included in the original draft. "There were a number of references to school funding in this bill. And so basically, this strikes all of those out and keeps it more simple and clear. I think, we made a determination that was probably not, appropriate for this bill to start messing around with school funding. So that's the purpose of this amendment, mister chair," Brewster said during debate.

Brewster also described the inflation adjustment introduced by the second amendment: "It increases the the amount of money they can spend above what they voted annually by the average of the rate of inflation for the previous 3 years plus growth, but it's averaged to an amount of not half the rate of inflation, but 3 quarters of the rate of inflation." Committee discussion clarified that the three-quarter adjustment applies to newly voted levies that are expressed in dollars (an option for voters) and is not an automatic increase to previously voted mill-based levies.

Members raised concerns about the long-term effect of the cap relative to local budgets. Representative John Konar said he supported the amendment but expressed reservations about constraining local governments. Representative Lydia Durham asked whether the change mandated an automatic adjustment; committee members and staff answered that inclusion of the inflation adjustment would be optional and must be included on the ballot for voters to approve. Vice Chair Thain also emphasized that the adjustment is not automatic and that local taxing authorities would still decide whether to levy the full allowable amount.

Committee action on amendments and the bill

- Amendment 20.001.001 (striking school-funding references): passed by voice/roll with the committee tally reported as 20–1 in favor.
- Amendment 20.001.003 (raising the allowed inflation factor from one-half to three-quarters for dollar-based voted levies): passed, committee tally reported as 20–1.
- Final motion to report House Bill 20, twice amended, passed on a roll-call vote of 16 in favor and 5 opposed.

Representative Konar and others described the three-quarter rate as a partial improvement over the bill’s original one-half inflation factor but said it still leaves districts and local governments facing recurring reauthorizations. Representative Thain and Representative Vestman said they supported the compromise because it gives voters the clarity of dollar-based levies and affords some inflation protection.

The committee record shows the amendments focused the bill on levy mechanics rather than broader changes to school funding formulas. Staff counsel explained that the amendment language modifies how ballots and levy authorizations may be written and noted that the change does not alter calculation for existing mill-based levies.

Next steps

House Bill 20 moves forward from executive action in the House Taxation Committee to the next committee or floor process specified by House rules.