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UTAH STATE SENATE

UTAH STATE CAPITOL COMPLEX * 320 STATE CAPITOL

P.O. BOX 145115 * SALT LAKE CITY, UTAH 84114-5115 * (801) 538-1035

        February 22, 2008

Mr. President:

    The Revenue and Taxation Committee reports a favorable recommendation on S.B. 237, COMMERCIAL AIRLINE AND AIRPORT TAXATION AMENDMENTS, by Senator W. Niederhauser, with the following amendments:

1.    Page 16, Lines 465 through 469 :    

             465          (2) For purposes of the assessment of an airline's mobile flight equipment by the
             466      commission, a portion of the value of the airline's mobile flight equipment shall

{   by   }        be       allocated to

             467      the state by calculating the product of:
             468          (a) the total value of the mobile flight equipment; and
             469          (b) the mobile flight equipment allocation factor.

2.    Page 17, Lines 516 through 523 :    

             516          (2) The average value of an airline's real and tangible personal property owned or
             517      rented and used in this state attributable to mobile flight equipment for purposes of the
             518      numerator of the fraction described in Subsection (1) shall be calculated for each aircraft type
             519      by determining the product of:
             520          (a) the total average value of the airline's mobile flight equipment of the aircraft type
             521      owned or rented and used
{   in the state   } during the tax period; and

             522          (b) a fraction, the numerator of which is the Utah revenue ton miles for the aircraft

type
             523      and the denominator of which is the airline revenue ton miles for the aircraft type.

3.    Page 19, Lines 574 through 580 :    

             574          (2) The total sales of an airline in this state during the tax period attributable to
             575      transportation revenues in this state during the

{   taxable year   }        tax period       for purposes of the numerator of the

             576      fraction described in Subsection (1) shall be calculated by determining the product of:
             577          (a) the total transportation revenues
{   in this state   } during the      {   taxable year   }        tax period       of the airline;

             578      and
             579          (b) a fraction, the numerator of which is the Utah revenue ton miles and the
             580      denominator of which is the airline revenue ton miles.

        Respectfully,

        Wayne L. Niederhauser
        Committee Chair

Voting: 5-0-3
3 SB0237.SC1.wpd bhowe/BRH RLR/PVD 2/22/08 5:04 pm


Bill Number
Action Class
Action Code

*SB0237*
*S*
*SCRAMD*

SB0237
S
SCRAMD