Budget & Taxes (Fees & Licensing)

HD 1532 authorizes cities and towns to impose a local surcharge of up to 2% on real estate taxes to fund affordable housing, but only after approval by a two-thirds vote of the local government and voter acceptance via ballot question. The surcharge applies to property taxes (not included in total tax calculations for certain limits) and funds must be deposited into an affordable housing trust. Exemptions include low-income housing, senior housing, commercial properties, and $100,000 per residential parcel. Cities may adjust the rate annually but cannot change it more than once per year, and funds remain dedicated to housing programs.

HD 1740 allows cities and towns to impose local tax surcharges on existing tax types (like sales, property, or vehicle taxes) specifically for transportation projects, but only after voter approval. Municipalities must hold a ballot question explaining the tax rate, purpose, and project details, requiring majority voter support to take effect. Regional districts of two or more towns can form to pool funds for shared transportation projects under a district agreement, with each municipality potentially setting its own surcharge rate. All surcharge revenue must be used exclusively for transportation projects (e.g., roads, transit, bike paths) and must include a sunset date in the ballot question.

This bill creates a new income tax deduction for specific fees paid to local governments or public schools. Taxpayers can deduct costs for student transportation to school, fees for school activities (like sports or clubs), and trash pickup fees (including "pay as you throw" programs). The deduction applies to fees paid directly to municipalities or school districts for these purposes. It does not change existing tax rules but adds these expenses as eligible deductions for income tax purposes.