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MINUTES OF THE

HOUSE REVENUE AND TAXATION

STANDING COMMITTEE

Room 445 - State Capitol, State Capitol Complex


                     February 7, 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. Aaron Tilton
                Rep. Carl Wimmer
                                 
MEMBERS ABSENT:     Rep. Gordon E. Snow

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 8:41 a.m.

MOTION:    Rep. Newbold moved to approve the minutes of the February 5, 2008 meeting. The motion passed unanimously with Rep. Hughes absent for the vote.

Rep. Dougall relinquished the chair to Rep. Barrus.


H.B. 155    Property Tax - Residential Exemption (Rep. G. Froerer)

This bill was not heard at the request of the sponsor.


H.B. 359    Sales and Use Tax Changes (Rep. J. Dougall)

Rep. Dougall introduced the bill and explained it to the committee. Marc Johnson, Utah State Tax Commission, and Doug Foxley, Union Pacific Railroad, spoke in favor of the bill. Bert Hulet, citizen from Bountiful, spoke to the bill.



MOTION:    Rep. Cosgrove moved to transmit H.B. 359 with a favorable recommendation. The motion passed unanimously with Rep. Last, Rep. Moss, Rep. Tilton, and Rep. Frank absent for the vote.

Rep. Barrus relinquished the chair to Rep. Dougall.


1st Sub. H.B. 351    Individual Income Tax - Health Insurance (Rep. J. Dunnigan)

MOTION:    Rep. Frank moved to amend the bill as follows:

1.    Page 18, Lines 525 through 531 :    

             525          (b) "Eligible insured individual" means:
             526          (i) the claimant who is insured under a health benefit plan;
             527          (ii) the spouse of the claimant described in Subsection (1)(b)(i) if:
             528          (A) the claimant files a single
{   federal individual income tax   } return jointly        under this chapter       with the

             529      claimant's spouse
  for the taxable year       ; and

             530          (B) the spouse is insured under the health benefit plan described in Subsection
             531      (1)(b)(i); or

2.    Page 19, Lines 553 through 561 :    

             553          (e) "Joint claimant with no dependents" means
{   :

             554          (i)   } a husband and wife who:
             555          
{   (A)   }        (i)       file a single      {   federal individual income tax   } return jointly        under this chapter       for the taxable year; and

             556          
{   (B)   }        (ii)       do not claim a dependent under Section 151, Internal Revenue Code, on the

             557      husband's and wife's federal individual income tax return for the taxable year
{   ; or   }        .      



             558          
{   (ii) a surviving spouse, as defined in Section 2(a), Internal Revenue Code, who:

             559          (A) files a single federal individual income tax return for the taxable year; and
             560          (B) does not claim a dependent under Section 151, Internal Revenue Code, on the
             561      surviving spouse's federal individual income tax return for the taxable year.   }


3.    Page 20, Lines 586 through 590 :    

             586          (3) The maximum amount of a tax credit described in Subsection (2) a claimant may
             587      claim
  on a return       for a taxable year is:

             588          (a) for a single claimant with no dependents, $300;
             589          (b) for a joint claimant with no dependents, $600; or
             590          (c) for a claimant with dependents, $900.

The motion to amend passed unanimously with Rep. Last and Rep. Moss absent for the vote.

Rep. Dunnigan introduced the amended bill and explained it to the committee.

MOTION:    Rep. Johnson moved to transmit 1st Sub. HB 351 as amended with a favorable recommendation. The motion passed unanimously with Rep. Hughes and Rep. Last absent for the vote.


H.B. 172    Distribution of Local Option Sales and Use Tax Revenues (Rep. B. Dee)

Rep. Dee introduced the bill and explained it to the committee assisted by Larry Hansen, Riverdale City Administrator.

MOTION:    Rep. Barrus moved to transmit H.B. 172 with a favorable recommendation. The motion passed unanimously with Rep. Hughes and Rep. Last absent for the vote.


S.B. 99    Amendments to Sales and Use Tax Exemption for Prosthetic Devices (Sen. W. Niederhauser) (Rep. J. Dougall)

Sen. Niederhauser introduced the bill and explained it to the committee. Marc Johnson, Utah State Tax Commission spoke in favor of the bill.

MOTION:    Rep. Frank moved to transmit with a favorable recommendation S.B. 99. The motion passed unanimously with Rep. Hughes absent for the vote.

H.B. 356    Taxation of Moist Snuff (Rep. R. Lockhart)

Rep. Lockhart introduced the bill and explained it to the committee. Wade Farraway, from the Attorney General's Office speaking in behalf of Attorney General Mark Shurtleff, spoke in favor of the bill. Royce Van Tassell, Utah Taxpayers Association, spoke in favor of the bill. Marc Johnson, Utah State Tax Commission, responded to questions from the Chair.



MOTION:    Rep. Harper moved to transmit H.B. 356 with a favorable recommendation. The motion passed unanimously with Rep. Cosgrove absent for the vote.


MOTION:    Rep. Harper moved to adjourn. The motion passed unanimously.

Rep. Dougall adjourned the meeting at 9:42 a.m.

    





                            __________________________
                            Rep. John Dougall, Chair