Room W135 - West Office Building, State Capitol Complex
January 28, 2008
MEMBERS PRESENT:
Rep. John Dougall, Chair
Rep. Craig A. Frank, Vice Chair
Rep. Roger Barrus
Rep. Tim M. Cosgrove
Rep. Wayne A. Harper
Rep. Gregory H. Hughes
Rep. Christine Johnson
Rep. Bradley G. Last
Rep. Roz McGee
Rep. Carol Spackman Moss
Rep. Merlynn T. Newbold
Rep. Gordon E. Snow
Rep. Aaron Tilton
Rep. Carl Wimmer
STAFF: Bryant Howe, Assistant Director
Rosemary Young, Secretary
Note: A list of visitors and a copy of handouts are filed with the committee minutes.
Rep. Dougall called the meeting to order at 8:11 a.m.
MOTION: Rep. Harper moved to approve the minutes of the January 22, 2008 meeting. The
motion passed unanimously with Rep. Cosgrove, Rep. Hughes, Rep. Johnson, Rep. Last, Rep.
Moss, Rep. Newbold, and Rep. Tilton absent for the vote.
H.B. 35 Motor and Special Fuel Tax Amendments (Rep. C. Frank)
MOTION: Rep. Wimmer moved to amend the bill as follows:
1. Page
4, Lines 90 through 98
:
90
(ii) the retailer, wholesaler, or licensed distributor:
91
(A) returns the mixed motor fuel to the refinery for re-refining; and
92
(B) has paid
{
or is required to pay the tax on
}
the motor fuel as provided by
this part.
93
(b) The claimant shall file a claim for a refund or credit with the commission within
90
94
days of the date the motor fuel was
{
re-refined
}
returned to the refinery for re-
refinement
.
95
(c) Any claimant filing a claim for a refund or credit shall furnish any or all of the
96
information outlined in this section upon request of the commission.
97
(d) The burden of proof
{
of the
}
that the motor fuel was returned to the
refinery for
re-refinement
{
of the motor fuel
}
is on the claimant who
98
shall provide evidence
{
of re-refinement of the motor fuel
}
to the satisfaction of
the commission
that the motor fuel was returned to the refinery for re-
refinement
.
2. Page
4, Lines 107 through 108
:
107
(A) the motor fuel mixed with the dyed diesel fuel or special fuel was
{
re-refined
}
returned to the refinery for re-refinement
; and
108
(B) motor fuel tax was paid on the
{
re-refined
}
returned
motor fuel.
3. Page
5, Line 138
:
138
(1) (a) A retailer, wholesaler,
licensed distributor,
or licensed supplier, who
without fault, sustains a loss or
4. Page
6, Line 164
:
164
(2) (a) A retailer, wholesaler,
{
or
}
licensed distributor
, or licensed
supplier
who has paid the tax on special
5. Page
7, Lines 189 through 201
:
189
(3) (a) Subject to the conditions and limitations of this section, a retailer,
wholesaler,
{
or
}
190
licensed distributor
, or licensed supplier
is entitled to a refund or credit of special
fuel tax if:
191
(i) dyed diesel fuel or special fuel is mixed with special fuel; and
192
(ii) the retailer, wholesaler,
{
or
}
licensed distributor
, or licensed
supplier
:
193
(A) returns the mixed special fuel to the refinery for re-refining; and
194
(B) has paid
{
or is required to pay
}
the tax on the special fuel as provided by
this part.
195
(b) The claimant shall file a claim for a refund or credit with the commission within
90
196
days of the date the special fuel was
{
re-refined
}
returned to the refinery for
re-refinement
.
197
(c) Any claimant filing a claim for a refund or credit shall furnish any or all of the
198
information outlined in this section upon request of the commission.
199
(d) The burden of proof
{
of the re-refinement of the special fuel
}
that the
special fuel was returned to the refinery for re-refinement
is on the claimant who
200
shall provide evidence
{
of re-refinement of the special fuel
}
to the satisfaction of
the
201
commission
that the special fuel was returned to the refinery for re-refinement
.
6. Page
7, Lines 210 through 211
:
210
(A) the special fuel mixed with the dyed diesel fuel or special fuel was
{
re-refined
}
returned to the refinery for re-refinement
; and
211
(B) special fuel tax was paid on the
{
re-refined
}
returned
special fuel.
The motion to amend passed unanimously with Rep. Cosgrove, Rep. Hughes, Rep. Johnson, Rep.
Last, Rep. Moss, Rep. Newbold, and Rep. Tilton absent for the vote.
Rep. Frank introduced H.B. 35 as amended and explained it to the committee.
MOTION: Rep. McGee moved to transmit the amended bill with a favorable recommendation.
The motion passed unanimously with Rep. Cosgrove, Rep. Hughes, Rep. Johnson, Rep. Last, Rep.
Moss, Rep. Newbold, and Rep. Tilton absent for the vote.
MOTION: Rep. Harper moved that H.B. 35 be placed on the consent calendar. The motion
passed unanimously with Rep. Cosgrove, Rep. Hughes, Rep. Johnson, Rep. Last, Rep. Moss, Rep.
Newbold and Rep. Tilton absent for the vote.
Rep. Dougall relinquished the chair to Rep. Harper.
H.B. 251 Sales and Use Tax Revisions (Rep. J. Dougall)
MOTION: Rep. Dougall moved to amend H.B. 251 as follows:
1. Page
1, Lines 11 through 16
:
11
This bill:
12
. repeals certain dates relating to the taxation of food and food ingredients;
13
. modifies a sales and use tax exemption relating to sales of aircraft manufactured
in
14
the state;
. modifies the sales and use tax exemption to which public transit districts
and their subcontractors are entitled;
15
. modifies requirements for calculating the use tax for purposes of a sales and use
tax
16
return filed quarterly;
2. Page
35, Lines 1051 through 1054
:
1051
(68) sales
:
(a)
to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit
1052
District Act
{
,
}
;
or
(b) of tangible personal property
to a subcontractor of a public transit district,
{
including sales of construction
1053
materials that are to be
}
if the tangible personal property is:
(i) clearly identified; and
(ii)
installed or converted to real property owned by the public transit
1054
district.
The motion passed unanimously with Rep. Hughes, Rep. Johnson, Rep. Last, Rep. Moss, Rep.
Newbold, Rep. Tilton, and Rep. Frank absent for the vote.
Rep. Dougall introduced H.B. 251 and explained it to the committee. Lynn Solarczyk and Pam
Hendrickson of the Utah Tax Commission spoke in favor of the bill.
MOTION: Rep. Barrus moved to transmit the amended bill with a favorable recommendation.
The motion passed unanimously with Rep. Hughes, Rep. Last, Rep. McGee, Rep. Moss, Rep.
Newbold, Rep. Tilton, and Rep. Frank absent for the vote.
H.B. 248 Amendments to Sales and Use Tax Exemption for Certain Property
Incorporated into Real Property (Rep. J. Dougall)
Rep. Dougall introduced the bill and explained it to the committee. Ken Murri, Chief Financial
Officer, Cover Pools, spoke in favor of the bill.
MOTION: Rep. Wimmer moved to transmit H.B. 248 with a favorable recommendation. The
motion passed unanimously with Rep. Hughes, Rep. Last, Rep. Moss, Rep. Newbold, Rep. Tilton,
and Rep. Frank absent for the vote.
Rep. Harper relinquished the chair to Rep. Dougall
H.B. 106 Clean Air and Efficient Vehicle Tax Incentives (Rep. R. McGee)
MOTION: Rep. McGee moved to amend the bill as follows:
1. Page
7, Lines 185 through 186
:
185
[(e)]
{
(f) "Electric-hybrid vehicle" is as defined in 42 U.S.C. Sec. 13435.
}
186
{
(g)
}
(f)
"Fuel economy standards" means that a vehicle's combined fuel
economy, as
2. Page
7, Lines 196 through 200
:
196
[(f)]
{
(h)
}
(g)
"Incremental cost" has the same meaning as in Section
19-1-402
.
197
[(g)]
{
(i) "OEM vehicle" has the same meaning as in Section
19-1-402
.
}
198
{
(j)
}
(h)
"Original purchase" means the purchase of a vehicle that has
never been titled or
199
registered and has been driven less than 7,500 miles.
200
[(h)]
{
(k)
}
(i)
"Special mobile equipment":
3. Page
7, Line 205
:
205
after January 1, [2001] 2009, but beginning on or before December 31, [2010]
{
2011
}
2013
, a taxpayer
4. Page
10, Lines 295 through 296
:
295
[(e)]
{
(f) "Electric-hybrid vehicle" is as defined in 42 U.S.C. Sec. 13435.
}
296
{
(g)
}
(f)
"Fuel economy standards" means that a vehicle's combined fuel
economy, as
5. Page
10, Line 306 through Page 11, Line 310
:
306
[(f)]
{
(h)
}
(g)
"Incremental cost" has the same meaning as in Section
19-1-402
.
307
[(g)]
{
(i) "OEM vehicle" has the same meaning as in Section
19-1-402
.
}
308
{
(j)
}
(h)
"Original purchase" means the purchase of a vehicle that has
never been titled or
309
registered and has been driven less than 7,500 miles.
310
[(h)]
{
(k)
}
(i)
"Special mobile equipment":
6. Page
11, Line 315
:
315
after January 1, [2001]
{
2008
}
2009
, but beginning on or before December 31,
[2010] {
2011
}
2013
, a
The motion to amend passed unanimously with Rep. Harper, Rep. Hughes, Rep. Last, Rep.
Newbold, Rep. Tilton, and Rep. Frank absent for the vote.
MOTION: Rep. Barrus moved to amend the bill as follows:
Page 1, Line 14: After "clean" insert "special" and after "fuel" delete "special"
The motion to amend passed unanimously with Rep. Harper, Rep. Hughes, Rep. Last, Rep. Tilton,
and Rep. Frank absent for the vote.
Rep. McGee introduced H.B. 106 and explained it to the committee. The following individuals
spoke in favor of the bill:
Glade Sowards Utah Division of Air Quality
Kathy Van Dame Wasatch Clean Air Coalition
Pam Hendrickson Utah State Tax Commission
Gordon Larsen Questar
Kevin Emerson Utah Clean Energy
The following individuals spoke to the bill:
Robin Erickson Utah Clean Cities Coalition
Carlos Braceras Utah Department of Transportation
MOTION: Rep. Barrus moved to transmit amended H.B. 106 with a favorable recommendation.
SUBSTITUTE MOTION: Rep. Newbold moved to further amend the bill by eliminating lines
14, 18, and 19 and sections 6, 7, and 8. The motion failed with Rep. Harper, Rep. Hughes, Rep.
Last, Rep. Newbold, and Rep. Snow voting in favor and Rep. Tilton and Rep. Frank absent for the
vote..
The original motion to transmit the amended bill with a favorable recommendation passed with
Rep. Last and Rep. Newbold voting against and Rep. Tilton and Rep. Frank absent for the vote.
Rep. Dougall relinquished the chair to Rep. Harper
H.B. 58 Severance Tax Amendments (Rep. J. Dougall)
Rep. Dougall assisted by Keith Prescott, chair of the Utah Tax Review Commission, introduced the
bill and explained it to the committee. Lee Peacock, Utah Petroleum Association, and Morris
Jackson, Tax Director at Questar, spoke in favor of the bill.
MOTION: Rep. Hughes moved to proceed to the next item on the agenda. The motion passed
unanimously with Rep. Moss and Rep. Frank absent for the vote.
Rep. Harper relinquished the chair to Rep. Dougall.
H.B. 49 Budget Reserve Account and Disaster Recovery Account Amendments (Rep. W.
Harper)
Rep. Harper introduced H.B. 49 and explained it to the committee. John Reidhead, Director of the
Division of Finance, spoke to the bill.
MOTION: Rep. Newbold moved to amend H.B. 49 as follows:
1. Page
5, Lines 123 through 126
:
123
(d) Notwithstanding Subsection
{
(2)
}
(3)
, the Division of Finance shall
hold back the
124
General Fund balance for debt service authorized by this Subsection [(3)] (4) before
making
125
any transfers to the General Fund Budget Reserve Account or any other designation or
126
allocation of General Fund revenue surplus.
2. Page
5, Lines 138 through 140
:
138
[(5) All] (6)
{
Except as provided in Subsection (4)(b),
interest
}
Interest
generated from
139
investments of money in the General Fund Budget Reserve Account shall be deposited
into the
140
account.
The motion passed unanimously with Rep. Hughes, Rep. Moss, Rep. Snow, Rep. Tilton, and Rep.
Frank absent for the vote.
MOTION: Rep. Newbold moved to transmit the bill as amended with a favorable
recommendation. The motion passed unanimously with Rep. Hughes, Rep. Moss, Rep. Snow, Rep.
Tilton, Rep. Wimmer, and Rep. Frank absent for the vote.
MOTION: Rep. Cosgrove moved to adjourn. The motion passed unanimously with Rep.
Hughes, Rep. Moss, Rep. Snow, Rep. Tilton, Rep. Wimmer, and Rep. Frank absent for the vote.
Rep. Dougall adjourned the meeting at 9:50 a.m.
__________________________
Rep. John Dougall, Chair