House of Representatives State of Utah


         W030 STATE CAPITOL COMPLEX . P.O. BOX 145030
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        SALT LAKE CITY, UTAH 84114-5030 . (801) 538-1029

        January 22, 2007

Mr. Speaker:

    The Revenue and Taxation Committee reports a favorable recommendation on H.B. 123, TAX REVISIONS, by Representative J. Dougall, with the following amendments:

1.    Page 1, Lines 18 through 26 :    

             18          .    enacts

  nonrefundable       tax credits allowed on the basis of filing status and the state sales and use tax

             19      rate for purposes of the Single Rate Individual Income Tax Act, including:
             20              .    requiring the apportionment of those tax credits for a nonresident individual or
             21      part-year resident individual;
  and      

             22              .    requiring the
{   Division of Finance   }        State Tax Commission       to make transfers from the General Fund to

             23      the Education Fund equal to the amount of those tax credits claimed;
             24     
{           .    requiring the State Tax Commission to report to the Division of Finance the

             25      amount of those tax credits claimed; and
             26              .    granting rulemaking authority to the State Tax Commission;
  }
2.    Page 6, Line 182 through Page 7, Line 186 :    

             182          59-10-1206.1. Definitions -- Nonrefundable tax credits allowed on the basis of
             183      filing status and the state sales and use tax rate --
{   Division of Finance   }        Commission       to transfer from the

             184      General Fund into the Education Fund an amount equal to the amount of tax credits
             185      claimed
{   -- Commission to report to the Division of Finance the amount of tax credits

             186      claimed -- Commission rulemaking authority   } .

3.    Page 7, Lines 201 through 208 :    

             201          (2) Except as provided in Section 59-10-1206.9 and subject to Subsections (3) and (4),

             202      for taxable years beginning on or after January 1, 2007, a claimant:
             203          (a) who has a single filing status may claim a
  nonrefundable       tax credit equal to the product of:

             204          (i) $5,000; and
             205          (ii) the percentage listed in Subsection 59-12-103 (2)(a)(i); or
             206          (b) who has a joint filing status may claim a
  nonrefundable       tax credit equal to the product of:

             207          (i) $10,000; and
             208          (ii) the percentage listed in Subsection 59-12-103 (2)(a)(i).

4.    Page 8, Lines 219 through 226 :    

             219          (5)
{   (a) Subject to Subsection (5)(b), the Division of Finance   }        The commission       shall transfer at least

             220      annually from the General Fund into the Education Fund an amount equal to the amount of tax
             221      credits claimed in accordance with this section.
             222          
{   (b) The commission shall report to the Division of Finance the amount of tax credits

             223      claimed in accordance with this section.
             224          (6) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             225      commission may make rules providing procedures for reporting to the Division of Finance the
             226      amount of tax credits claimed in accordance with this section.   }

    Respectfully,

    John Dougall
    Committee Chair

Voting: 11-4-0
3 HB0123.HC1.wpd 1/22/07 10:07 am bhowe/BRH RLR/BRH

Bill Number
Action Class
Action Code

*HB0123*
*H*
*HCRAMD*

HB0123
H
HCRAMD