Link to Zipped WordPerfect Minutes 12K bytes


MINUTES OF THE

HOUSE REVENUE AND TAXATION

STANDING COMMITTEE

Room 445 - State Capitol

February 12, 2014

Members Present:         Rep. Ryan Wilcox, Chair
                Rep. Jim Nielson, Vice Chair
                Rep. Jake Anderegg    
                Rep. Joel Briscoe                            
                 Rep. Tim Cosgrove     
                Rep. Steve Eliason                              
                Rep. Gage Froerer
                Rep. Francis Gibson
                 Rep. Eric Hutchings                         
                Rep. Brian King
                Rep. John Knotwell
                Rep. Kay McIff
                Rep. Doug Sagers
                Rep. Jon Stanard
                Rep. Earl Tanner     

Members Absent:         Rep. Mel Brown     

Staff Present:        Mr. Leif G. Elder, Policy Analyst
                Ms. An Bradshaw, Secretary
                    
NOTE:    A list of visitors and a copy of handouts are filed with the committee minutes.

Chair Wilcox called the meeting to order at 2:11 p.m.

MOTION:    Rep. Eliason moved to approve the minutes of February 10, 2014. The motion passed unanimously with Rep. Anderegg, Rep. Froerer, Rep. Gibson, Rep. Hutchings, Rep, Knotwell, Rep. Sagers, and Rep. Nielson absent for the vote.

H.B. 83    Local Government Residential Reimbursement Authority (Rep. Johnny Anderson)

Rep. Anderson explained the bill to the committee with the assistance of Jeremy Keele, Salt Lake County Mayor's Office.

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

1.    Page 3, Line 81 :    

             81          (1)
{   Subject   }        If a county or municipality elects to create a fund under

this chapter, and subject       to Subsections (2) and (3), a municipality or county shall establish by



The motion to amend passed unanimously with Rep. Anderegg, Rep. Froerer, Rep. Gibson, Rep. Hutchings, Rep. Knotwell, and Rep. Sagers absent for the vote.

MOTION:    Rep. Tanner moved to pass the bill out favorably as amended. The motion passed unanimously with Rep. Froerer, Rep. Gibson, and Rep. Hutchings absent for the vote.

Vice Chair Nielson assumed the chair.

H.B. 209    Extension of Sales and Use Tax Exemption (Rep. R. Wilcox)

Rep. Wilcox explained the bill to the committee with the assistance of Royce Van Tassell, Utah Taxpayers Association, and Dave Reinhart, Nucor Steel. A handout, "Nucor Corporation-Utah Operations Impact on Utah Economy," was provided.

Spoke for the bill:    Todd Bingham, Utah Manufacturers Association

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


1.    Page 14, Lines 404 through 408 :    

             404          (29)
{   beginning on July 1, 1999, through June 30, [2014] 2029,   } sales or leases of rolls,

             405      rollers, refractory brick, electric motors, or other replacement parts used in the furnaces, mills,
             406      or ovens of a steel mill described in SIC Code 3312 of the 1987 Standard Industrial
             407      Classification Manual of the federal Executive Office of the President, Office of Management
             408      and Budget;

The motion to amend passed with Rep. Briscoe, Rep. Cosgrove, Rep. King, Rep. McIff, and Rep. Tanner voting in opposition and Rep. Stanard and Rep. Nielson absent for the vote.

Rep. Knotwell assumed the chair.

MOTION:    Rep. Eliason moved to pass the bill out favorably as amended. The motion passed with Rep. King voting in opposition and Rep. Nielson absent for the vote.



H.B. 31    Pollution Control Amendments (Rep. R. Wilcox)

Rep. Wilcox explained the bill to the committee.

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


1.    Page 5, Lines 125 through 128 :    

             125          (5) (a) "Freestanding pollution control property" means tangible personal property
             126      located in the state, regardless of whether a purchaser purchases the tangible personal property
             127      voluntarily or
{   a governmental entity requires the purchaser to purchase the tangible personal

             128      property  
}
  to comply with a requirement of a governmental entity       , if:


2.    Page 5, Line 138 through Page 6, Line 154 :    

             138          (b) "Freestanding pollution control property" does not include:
    
  (i) a consumable:

    (A) chemical that is not reusable;
    (B) cleaning material that is not reusable; or
    (C) supply that is not reusable;  

             139          
{   (i)   }        (ii)       the following used for human waste:

             140          (A) a septic tank; or
             141          (B) other property;
             142          
{   (ii)   }        (iii)       property installed, constructed, or used for the moving of sewage to a collection

             143      facility of a public or quasi-public sewerage system;
             144          
{   (iii)   }        (iv)       the following used for the comfort of personnel:

             145          (A) an air conditioner;
             146          (B) a fan; or
             147          (C) an item similar to Subsection (5)(b)
{   (iii)   }        (iv)       (A) or (B); or

             148          
{   (iv)   }        (v)       office equipment or an office supply if the primary purpose of the office equipment

             149      or office supply is not the prevention, control, or reduction of air or water pollution by:
             150          (A) the disposal or elimination of, or redesign to eliminate, waste, and the use of
             151      treatment works for industrial waste; or
             152          (B) the disposal, elimination, or reduction of, or redesign to eliminate or reduce, air


             153      contaminants, air pollution, or air contamination sources, and the use of one or more air
             154      cleaning devices.

3.    Page 6, Lines 155 through 158 :    

             155          (6) (a) "Pollution control facility" means real property in the state, regardless of
             156      whether a purchaser purchases the real property voluntarily or
{   a governmental entity requires

             157      the purchaser to purchase the real property  
}
  to comply with a requirement of a governmental entity       , if the primary purpose of the real property is the

             158      prevention, control, or reduction of air pollution or water pollution by:

4.    Page 6, Line 169 through Page 7, Line 185 :    

             169          (c) "Pollution control facility" does not include:
     (i) a consumable:
    (A) chemical that is not reusable;
    (B) cleaning material that is not reusable; or
    (C) supply that is not reusable;

             170          
{   (i)   }        (ii)       the following used for human waste:

             171          (A) a septic tank; or
             172          (B) another facility;
             173          
{   (ii)   }        (iii)       property installed, constructed, or used for the moving of sewage to a collection

             174      facility of a public or quasi-public sewerage system;
             175          
{   (iii)   }        (iv)       the following used for the comfort of personnel:

             176          (A) an air conditioner;
             177          (B) a fan; or
             178          (C) an item similar to Subsection (6)(c)
{   (iii)   }        (iv)       (A) or (B); or

             179          
{   (iv)   }        (v)       office equipment or an office supply if the primary purpose of the office equipment

             180      or office supply is not the prevention, control, or reduction of air or water pollution by:
             181          (A) the disposal or elimination of, or redesign to eliminate, waste, and the use of
             182      treatment works for industrial waste; or
             183          (B) the disposal, elimination, or reduction of, or redesign to eliminate, or reduce, air
             184      contaminants, air pollution, or air contamination sources, and the use of one or more air
             185      cleaning devices.


5.    Page 7, Lines 193 through 197 :    

             193          (1) Except as provided in Subsection (2), a purchase or lease of the following is
             194      exempt from a tax imposed under Title 59, Chapter 12, Sales and Use Tax Act:
             195          (a) freestanding pollution control property;
             196          (b) tangible personal property
{   , including tangible personal property that has an

             197      economic life of less than three years,  
}
if the tangible personal property is:

6.    Page 7, Lines 209 through 213 :    

             209          (iii) property described in Subsection (1)(b), a part described in Subsection (1)(c), or a
             210      product described in Subsection (1)(d).
    
  (2) A purchase or lease of the following is not exempt under this section:

      
(a) a consumable chemical that is not reusable;

    (b) a consumable cleaning material that is not reusable; or
    (c) a consumable supply that is not reusable.

             211          
{   (2)   }        (3)       A purchase or lease of office equipment or an office supply is not exempt under this

             212      section if the primary purpose of the office equipment or office supply is not the prevention,
             213      control, or reduction of air or water pollution by:

The motion to amend passed unanimously with Rep. Nielson absent for the vote.

MOTION:    Rep. Stanard moved to pass the bill out favorably as amended. The motion passed unanimously with Rep. Nielson absent for the vote.

Chair Wilcox resumed the chair.

H.B. 74    Energy Efficient Vehicle Tax Credits (Rep. V. L. Snow)

Rep. Snow explained the bill to the committee with the assistance of Kevin Emerson, Utah Clean Energy, Jeff Edwards, Economic Development Corporation of Utah, and Mat Carlile, Division of Air Quality.

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

1.    Page 4, Lines 104 through 107 :    


             104          (b) for the
  original       purchase of a        new       vehicle fueled by natural gas that is registered in this state, the

             105      lesser of:
             106          (i) $2,500; or
             107          (ii) 35% of the purchase price of the vehicle;

2.    Page 9, Lines 249 through 252 :    

             249          (b) for the
  original       purchase of a        new       vehicle fueled by natural gas that is registered in this state, the

             250      lesser of:
             251          (i) $2,500; or
             252          (ii) 35% of the purchase price of the vehicle;

The motion to amend passed unanimously.    

Spoke for the bill:    Lincoln Shurtz, General Motors
            Linda Johnson, Clean Action Team
            Ingrid Griffee, Utah Moms for Clean Air
            Brooke Scott, Utah Moms for Clean Air

MOTION:    Rep. Stanard moved to pass the bill out favorably as amended. The motion passed unanimously with Rep. McIff and Rep. Nielson absent for the vote.

H.B. 338    Alcohol Beverage License Amendments (Rep. G. Froerer)

This bill was not heard.

MOTION:    Rep. Knotwell moved to adjourn the meeting. The motion passed unanimously with Rep. McIff and Rep. Nielson absent for the vote.

Chair Wilcox adjourned the meeting at 4:04 p.m.








Ryan D. Wilcox, chair