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MINUTES OF THE

HOUSE REVENUE AND TAXATION

STANDING COMMITTEE

Room 445 - State Capitol, State Capitol Complex


                     February 25, 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 8:07 a.m.

MOTION:    Rep. Frank moved to approve the minutes of the February 21, 2008 meeting. The motion passed unanimously with Rep. Cosgrove, Rep. Hughes, Rep. Moss, Rep. Newbold, Rep. Snow, and Rep. Tilton absent for the vote.

H.B. 183    Sales and Use Tax Amendments (Rep. W. Harper)

Rep. Harper introduced the bill and explained it to the committee. Bruce Jones, Utah Transit Authority, spoke in favor of the bill.

MOTION:    Rep. Frank moved to transmit H.B. 183 with a favorable recommendation. The motion passed unanimously with Rep. Cosgrove, Rep. Hughes, Rep. Moss, Rep. Newbold, Rep. Snow, and Rep. Tilton absent for the vote.

H.B. 206    Tax Amendments (Rep. W. Harper)

MOTION:    Rep. Harper moved to amend H.B. 206 as follows:

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:


The motion passed unanimously with Rep. Cosgrove, Rep. Hughes, Rep. Moss, Rep. Newbold, Rep. Snow, and Rep. Tilton absent for the vote.

Rep. Harper introduced the bill and explained it to the committee assisted by Bruce Johnson, Utah Tax Commission. Jim Olsen, Utah Retail Merchants Association, spoke in favor of the bill.

MOTION:    Rep. Barrus moved to transmit H.B. 206 as amended with a favorable recommendation. The motion passed with Rep. Cosgrove voting in opposition and Rep. Hughes and Rep. Last absent for the vote.

3rd Sub. S.B. 48    Equalization of School Capital Outlay Funding (Sen. D. Eastman) (Rep. A. Tilton)

MOTION:    Rep. Frank moved to adopt 4th Substitute S.B. 48. The motion passed unanimously with Rep. Harper, Rep. Hughes, and Rep. Last absent for the vote.

Sen. Eastman introduced the bill and explained it to the committee with handouts and assisted by Angela Oakes, Associate General Counsel Office of Legislative Research and General Counsel. Janet Roberts, Salt Lake School District, distributed a handout and spoke in opposition to the bill. Carlton Christensen, Salt Lake City Council, spoke in opposition to the bill.

MOTION:    Rep. Wimmer moved to transmit 4th Sub. S.B. 48 with a favorable recommendation. The motion passed with Rep. Cosgrove, Rep. Johnson, Rep. McGee, Rep. Moss, and Rep. Snow voting in opposition and Rep. Harper absent for the vote.

The following bills and resolutions were not heard at this meeting:

H.J.R. 14    Joint Resolution Amending Residential Property Assessment Provisions (Rep. G. Froerer)
H.J.R. 9    Resolution Amending Property Tax Provision (Rep. P. Ray)
H.B. 355    Cigarette Tax Increase and Appropriations for Preventive Health Activities (Rep. P. Ray)
1st Sub. S.B. 84    Net Metering Programs (Sen. K. VanTassell) (Rep. R. Barrus)

MOTION:    Rep. Wimmer    moved to adjourn. The motion passed unanimously with Rep. Harper absent for the vote.

Rep. Dougall adjourned the meeting at 9:28 a.m.





                            __________________________
                            Rep. John Dougall, Chair