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MINUTES OF THE

HOUSE REVENUE AND TAXATION

STANDING COMMITTEE

Room 445 - State Capitol

February 29, 2012

MEMBERS PRESENT:     Rep. Patrick L. Painter, Chair
                Rep. David Butterfield, Vice Chair
                Rep. Stewart Barlow
                Rep. Joel Briscoe                 
                 Rep. Tim Cosgrove                 
                Rep. John Dougall                
                Rep. Susan Duckworth
                Rep. Steve Eliason                              
                Rep. Gage Froerer
                Rep. Francis Gibson
                Rep. Wayne Harper                          
                 Rep. Eric Hutchings                         
                Rep. Brian King
                Rep. Merlynn Newbold
                Rep. Jim Nielson         

MEMBERS EXCUSED:    Rep. Mel Brown

STAFF PRESENT:        Mr. Phil Dean, Policy Analyst
                Ms. An Bradshaw, Secretary
                    
Note:    A list of visitors and a copy of handouts are filed with the committee minutes.

Chair Painter called the meeting to order at 7:35 a.m.

MOTION:    Rep. Dougall moved to approve the minutes of Feb. 24, 2012 and Feb. 27, 2012. The motion passed unanimously with Rep. Barlow, Rep. Eliason, and Rep. King absent for the vote.

H.B. 507    School Allocations Measured by Property Tax (Rep. J. Dougall)

Rep. Dougall introduced the bill to the committee with the assistance of Mr. Chris Bleak, Utah Association of Public Charter Schools.

Spoke to the bill:        Mr. Tim Leffel, Davis School District

Spoke against the bill:    Mr. Kory Holdaway, Utah Education Association


MOTION:    Rep. Butterfield moved to hold the bill for interim study. The motion passed unanimously with Rep. Duckworth, Rep. Froerer, Rep. Gibson, and Rep. Newbold absent for the vote.

H.B. 387    Property Tax Modifications (Rep. J. Dougall)

MOTION:    Rep. Dougall moved to replace HB387 with 1st Sub. HB387. The motion passed unanimously with Rep. Duckworth, Rep. Froerer, Rep. Gibson, and Rep. Newbold absent for the vote.

Spoke for the bill:    Mr. Lee Gardner, Salt Lake County Treasurer
            Ms. Candace Daly, National Federation of Independent Business

MOTION:    Rep. Harper moved to pass 1st Sub. HB387 out favorably. The motion passed unanimously with Rep. Froerer and Rep. Gibson absent for the vote.

S.B. 24    Research Tax Credit Amendments (Sen. J. Valentine)

Sen. Valentine introduced the bill to the committee.

MOTION:    Rep. Harper moved to pass the bill out favorably. The motion passed unanimously with Rep. Gibson absent for the vote.

S.B. 23    Life Science and Technology Tax Credit Amendments (Sen. C. Bramble)

Sen. Bramble introduced the bill to the committee.

MOTION:    Rep. Butterfield moved to replace SB23 with 1st Sub. SB23. The motion passed unanimously with Rep. Dougall, Rep. Gibson, and Rep. King absent for the vote.

MOTION:    Rep. Butterfield moved to amend 1st Sub. SB23 as follows:


1.    Page 10, Lines 283 through 292 :    

             283          (2) For fiscal year 2011-12 only, the office may issue a total of $1,300,000 in tax credit
             284      certificates in accordance with this part.
             285          (3) (a) If the total amount of tax credit certificates the office issues in a fiscal year is
             286      less than the amount of tax credit certificates the office may issue under this part in a fiscal


             287      year, the office may issue the remaining amount of tax credit certificates in a fiscal year after
             288      the fiscal year for which there is a remaining amount of tax credit certificates.
             289          (b)
{   If   }        Except as provided in Subsection (3)(c), if       the total amount of tax credit certificates the office issues in a quarter of a fiscal

             290      year is less than the amount of tax credit certificates the office may issue under this part in that
             291      quarter, the office may issue the remaining amount of tax credit certificates in a quarter after
             292      the quarter for which there is a remaining amount of tax credit certificates.
  (c) For fiscal year 2011-12 only, if the total amount of tax credit certificates the office issues in fiscal year 2011-12 is less than the amount of tax credit certificates the office may issue in tax credit certificates under Subsection (2), the office:

(i) may issue the remaining amount of tax credit certificates in a fiscal year after fiscal year 2011-12; and
(ii) is not required to allocate the tax credit certificates to any particular quarter.  


2.    Page 11, Lines 325 through 330 :    

             325          (1) (a) Except as provided in Subsection 63M-1-2903 (3)(b), for each quarter of a fiscal
             326      year
  after fiscal year 2011-12       , the office shall allocate:

             327          (i) 25% of the total amounts made available for allocation in accordance with Section
             328      63M-1-2903 for the tax credits under Sections 59-7-614.6 and 59-10-1109 ; and
             329          (ii) 25% of the amounts made available for allocation in accordance with Section
             330      63M-1-2903 for the tax credit under Section 59-10-1025 .

The motion to amend passed unanimously with Rep. Dougall, Rep. Gibson, and Rep. King absent for the vote.

MOTION:    Rep. Butterfield moved to further amend 1st Sub. SB23 as follows:



1.    Page 2, Lines 44 through 46 :    

             44          (f) "Qualifying agreement" means an agreement under Subsection 63M-1-2908 that
             45      includes a provision for an eligible business entity to make new capital expenditures of at

least
             46     

{   $750 million   }        $1 billion       in the state.



2.    Page 12, Line 361 through Page 13, Line 367 :    

             361          (c) for the seven taxable years immediately following the last of the two taxable years
             362      described in Subsection (1)(b) if:
             363          (i) the agreement with the office described in Section 63M-1-2908 includes a provision
             364      that the tax credit applicant will make new capital expenditures of at least
{   $750 million   }        $1 billion       in the

             365      state; and
             366          (ii) the tax credit applicant makes new capital expenditures of at least
{   $750 million   }        $1 billion       in

             367      the state in accordance with the agreement with the office described in Section 63M-1-2908 .

The motion to amend passed unanimously with Rep. Dougall, Rep. Gibson, Rep. Harper, and Rep. King absent for the vote.

MOTION:    Rep. Duckworth moved to pass 1st Sub. SB23 favorably as amended. The motion passed unanimously with Rep. Gibson, Rep. Harper, and Rep. King absent for the vote.

H.B. 158    Student-based Budgeting (Rep. D. Butterfield)

Rep. Butterfield introduced the bill to the committee.

Spoke for the bill:        Ms. Judi Clark, Parents for Choice in Education

Spoke to the bill:        Mr. Royce Van Tassell, Utah Taxpayers Association

Spoke against the bill:    Mr. Richard Reese, Murray School District
                Mr. Kory Holdaway, Utah Education Association

MOTION:    Rep. Butterfield moved to hold the bill for interim study. The motion passed unanimously with Rep. Gibson absent for the vote.


Chair Painter relinquished the chair to Vice Chair Butterfield.

S.B. 31    Classroom Size Amendments (Sen. K. Morgan)

Sen. Morgan introduced the bill to the committee.

Spoke for the bill:    Sen. Howard Stephenson, Utah State Senate
            Ms. Janis Dubno, Voices for Utah Children
            Mr. Richard Reese, Murray School District
            Mr. Kory Holdaway, Utah Education Association
            Ms. Deon Turley, Utah Parent Teacher Association

MOTION:    Rep. Harper moved to table SB31.

SUBSTITUTE MOTION:    Rep. Cosgrove moved to pass SB31 favorably. The motion failed with Rep. Briscoe, Rep. Duckworth, Rep. Gibson, and Rep. Hutchings voting in favor of the motion. Rep. Barlow, Rep. Eliason, and Rep. King were absent for the vote.

MOTION:    The original motion to table SB31 passed with Rep. Briscoe, Rep. Cosgrove, Rep. Duckworth, and Rep. Hutchings voting in opposition. Rep. Barlow, Rep. Eliason, and Rep. King were absent for the vote.

MOTION:    Rep. Dougall moved to adjourn the meeting. The motion passed unanimously with Rep. Barlow, Rep. Eliason, and Rep. King absent for the vote.

Vice Chair Butterfield adjourned the meeting at 9:33 a.m.









                            __________________________
                            Rep. Patrick L. Painter, Chair