House of Representatives State of Utah


         UTAH STATE CAPITOL COMPLEX . 350 STATE CAPITOL
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Graphic file number 0 named letter~1.jpg with height 78 p and width 81 p Left aligned
         P.O. BOX 145030 . SALT LAKE CITY, UTAH 84114-5030 . (801) 538-1029         February 25, 2008

Mr. Speaker:

    The Revenue and Taxation Committee reports a favorable recommendation on H.B. 206, TAX AMENDMENTS, by Representative W. Harper, with the following amendments:

1.    Page 29, Line 890 through Page 30, Line 896 :    

             890          (c) (i) For purposes of Subsection [(12)] (15)(a)[(ii)(A)] (i), tangible personal property,
             891      a product, or

  a       service that is distinct and identifiable does not include:

             892          [(i)] (A) packaging that:
             893          [(A)] (I) accompanies the sale of the tangible personal property, product, or service;
             894      and
             895          [(B)] (II) is incidental or immaterial to the sale of the tangible personal property,
             896      product, or service;

             897          [(ii)] (B) tangible personal property

  , a product, or a service       provided free of charge with the purchase of

             898      another item of tangible personal property
  , a product, or a service       ; or

             899          [(iii)] (C) an item of tangible personal property,
  a       product, or a service included in the

             900      definition of "purchase price."
             901          [(d)] (ii) For purposes of Subsection [(12)] (15)(c)[(ii)](i)(B), an item of tangible
             902      personal property
  , a product, or a service       is provided free of charge with the purchase of another item of tangible

             903      personal property
  , a product, or a service       if the sales price of the purchased item of tangible personal property        , product, or service       does not

             904      vary depending on the inclusion of the tangible personal property
  , product, or service       provided free of charge.


2.    Page 94, Lines 2890 through 2894 :    

             2890          (b) notwithstanding Subsection (18)(a), amounts paid or charged for the following

             2891     
{   tangible personal property or products transferred electronically   } are subject to the taxes

             2892      imposed by this chapter:

             2893          (i) (A) subject to Subsection (18)(b)(i)(B), the following

{   tangible personal property   } if

             2894     
{   the tangible personal property is   } used in a manner that is incidental to farming:


    Respectfully,

    John Dougall
    Committee Chair

Voting: 11-1-2
3 HB0206.HC1.wpd 2/25/08 9:30 am bhowe/BRH RLR/BRH

Bill Number
Action Class
Action Code

*HB0206*
*H*
*HCRAMD*

 HB0206
H
HCRAMD