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HB 218

Family Law – Child Support

2025 Regular Session

HB 218 cleans up and modernizes state tax statutes, expands TRD administrative flexibility, and updates filing, payment, and enforcement rules to streamline taxes.

Hearing 2/20 at 1:00 p.m.
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WeVote Research Nonpartisan
Bill Summary · HB 218

Summary — HB 218 (Tax Changes)

Status: Signed
Primary subject: Taxation administration — statewide tax code cleanup and administrative changes

Main purpose

HB 218 is a comprehensive technical and administrative overhaul of state tax statutes. Its intent is to (1) modernize and consolidate outdated or inconsistent language across many tax laws, (2) align tax administration with destination sourcing rules and current practice, and (3) give the Taxation & Revenue Department (TRD)/Secretary expanded administrative flexibility to set reporting/payment intervals and to streamline taxpayer filing, refund, lien, and enforcement procedures.

Key provisions (high level)

  • Administrative cleanup: Repeals obsolete sections, standardizes credit and tax‑expenditure language, and updates statutory references (e.g., SNAP terminology, agency names).
  • Destination sourcing / redevelopment: Amends Metropolitan Redevelopment Code and Tax Increment for Development (TIDD) calculations to conform with destination sourcing rules and to allow alternate base‑year data on local request/secretary approval.
  • Reporting & payment intervals: Increases the amount and extends the time period the Secretary may set tax reporting and payment intervals (more flexibility for TRD to change filing cadence).
  • Filing thresholds and frequency:
    • Raises the threshold allowing quarterly or semi‑annual filing (increase in the amount a taxpayer may owe before monthly filing is required).
    • Allows very small taxpayers (owing less than $500) to file/pay as infrequently as annually instead of semi‑annually (per STBTC amendment).
  • Electronic processes and enforcement:
    • Requires taxpayers owing over a set threshold to pay electronically (with waiver authority).
    • Allows TRD to record tax liens electronically and without a notary signature.
    • Removes requirement for Attorney General approval of closing agreements and certain refund approvals (simplifies settlement process).
    • Clarifies TRD authority to abate penalty/interest below specified thresholds.
  • Deadlines: Eliminates certain extended deadlines for electronic filers so all filers share same PIT/CIT deadlines (e.g., April 15 for PIT; March 15 for CIT).
  • Petroleum loading fee: Replaces tiered contingent rates with a flat $150 fee (removes annual certification requirement).
  • Oil & gas provisions: The SFC/STBTC amendments removed earlier clarifications regarding taxation of skim oil (many of those sections were struck).
  • Miscellaneous: Standardizes electronic filing requirements for withholding statements and adjusts various tax credit and reporting rules.

Fiscal impact

  • Legislative Finance Committee (LFC): revenue impact described as “indeterminate but minimal gain” for the general fund and local governments in early years. Some line‑items in the FIR showed modest recurring general fund increases in future years (amounts described as indeterminate/minimal).
  • Taxation & Revenue Department (TRD): estimated one‑time implementation cost of about $239,900 (system/programming) per TRD analysis. TRD also may realize small recurring administrative costs/savings depending on implementation choices.
  • Other agency impacts: Changes to distributions, liens, and filing may have modest operational effects on local governments and agencies.

Who is affected

  • Taxpayers (individuals and businesses): changes to filing frequency, payment methods, and certain deadlines; some small taxpayers will have lighter filing burdens.
  • Taxation & Revenue Department / Secretary: expanded administrative authority and new electronic processes.
  • Local governments and redevelopment districts: changes to TIDD/gross receipts base calculations and possible effects on local option gross receipts distributions.
  • Industries affected by oil & gas rules and petroleum loading fee payers (fee made flat).

Effective dates & major procedural notes

  • Effective dates were staged in committee reports: many provisions effective July 1, 2025; other sections effective January 1, 2026 (see Section 158 in final amendment language for details).
  • The bill passed through multiple committee amendments (Tax, Business & Transportation; Senate Finance) that altered oil‑tax provisions and Secretary authority prior to final passage.
  • Because HB 218 is extensive and technical, individual stakeholders should consult the final enrolled text to identify exact statutory section changes and the precise effective date(s) for provisions that affect them.

Compiled from official sources — confirm details with the bill’s official record.

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