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MINUTES OF THE

HOUSE REVENUE AND TAXATION

STANDING COMMITTEE

Room 445, State Capitol

February 25, 2014

Members Present:         Rep. Ryan Wilcox, Chair
                Rep. Jim Nielson, Vice Chair
                Rep. Jake Anderegg    
                Rep. Joel Briscoe
                 Rep. Mel Brown         
                 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     

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 4:34 p.m.

MOTION:    Rep. Knotwell moved to approve the minutes of the February 24, 2014 meeting. The motion passed unanimously with Rep. Anderegg, Rep. Briscoe, Rep. Froerer, and Rep. Sagers absent for the vote.

H.B. 380    Repeal of Housing Relief Expendable Special Revenue Fund (Rep. M. Brown)

Rep. Brown explained the bill to the committee.

MOTION:    Rep. Knotwell moved to pass the bill out favorably. The motion passed unanimously with Rep. Froerer, Rep. Gibson, Rep. Hutchings, Rep. King, Rep. Sagers, Rep. Stanard, and Rep. Nielson absent for the vote.

MOTION:    Rep. Knotwell moved to place HB380 on the Consent Calendar. The motion passed unanimously with Rep. Froerer, Rep. Gibson, Rep. Hutchings, Rep. King, Rep. Sagers, Rep. Stanard, and Rep. Nielson absent for the vote.             



S.B. 134    Taxation Related Referendum Amendments (Sen. J. Valentine)

Sen. Valentine explained the bill to the committee and provided a handout, "Comparison Between SB134 (as amended) and Current Law."

Spoke for the bill:    Roger Tew, Utah League of Cities and Towns

MOTION:    Rep. Cosgrove moved to pass the bill out favorably as amended on February 21, 2014. The motion passed unanimously with Rep. Froerer and Rep. Sagers absent for the vote.

Vice Chair Nielson assumed the chair.

H.B. 379    Proposed Tax Increase and Bond Proposition Amendments (Rep. R. Wilcox)

Rep. Wilcox explained the bill to the committee.

Spoke to the bill:    Roger Tew, Utah League of Cities and Towns

MOTION:    Rep. Anderegg moved to pass the bill out favorably. The motion passed unanimously with Rep. Froerer and Rep. Hutchings absent for the vote.

H.B. 51    State Tax Commission Report on Tax Provisions (Rep. J. Briscoe)

Rep. Briscoe explained the bill to the committee and provided a handout, "Audit: $334 million USTAR effort inflated jobs, revenue."

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

1.    Page 2, Lines 35 through 39 :    

             35          (1) "Designated tax provision" means:
             36          
{   (a) the property tax residential exemption described in Section 59-2-103 ;   }

    
  (a) a property tax exemption provided in:

    (i) Section 59-2-1104; or
    (ii) Section 59-2-1106;  

             37          (b) a property tax
{   exemption, deferral, or   } abatement provided in      {   Chapter 2, Part 11,

             38      Exemptions, Deferrals, and Abatements  
}
  Section 59-2-1107       ;

             39          (c) property tax relief provided in Chapter 2, Part 12, Property Tax Relief;



2.    Page 2, Line 55 through Page 3, Line 60 :    

             55          (e) a statement of:
             56          (i) the actual revenue lost to the state or
{   a political subdivision   }        political subdivisions       as a result of the

             57      designated tax provision; or
             58          (ii) if the actual revenue lost to the state or
{   a political subdivision   }        political subdivisions       cannot be determined

             59      or may not be disclosed in accordance with Section 59-1-403 or 59-1-404 , an estimate of the
             60      revenue lost to the state or
{   a political subdivision   }        political subdivisions       as a result of the designated tax provision;


The motion passed unanimously with Rep. Froerer, Rep. Hutchings, and Rep. Wilcox absent for the vote.

Chair Wilcox resumed the chair.

MOTION:    Rep. King moved to hold the bill. The motion passed unanimously with Rep. Brown and Rep. Hutchings absent for the vote.    

H.B. 140    Tax Credit Amendments (Rep. B. King)

Rep. King explained the bill to the committee.

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

1.    Page 3, Lines 68 through 72 :    

             68          (5) "Wage requirement" means that an employer pays a person who is homeless $4,000
             69      or more in wages during a time period that:
             70          (a) begins on the date of hire; and
             71          (b) ends no later than
{   the last day of a three-calendar-quarter period, the first day of

             72      which is the first day of the first calendar quarter that begins on or after the date of hire  
}
  two calendar quarters after the calendar quarter in which the date of hire occurs       .


2.    Page 4, Lines 91 through 97 :    

             91          (4) The application:
             92          (a) shall list, for each person who is homeless that the employer employs:
             93          (i) the person's name;
             94          (ii) the person's
{   taxpayer identification   }        Social Security       number; and

             95          (iii) the person's current address;
             96          (b) shall list the employer's
{   taxpayer   }        federal employer       identification number; and

             97          (c) may require additional information as determined by the department.

3.    Page 5, Lines 137 through 140 :    

             137          (2)
{   No later than 90 days after the date that an employer provides the written notice

             138      described in Subsection (1) to the department, the  
}
  The       department shall determine whether      {   the   }        an      

             139      employer has met the requirements of the participation agreement under Section 53A-5-304 to
             140      receive a tax credit certificate
{   .   }        :

    (a) after the employer provides the written notice described in Subsection (1) to the department; and
    (b) no later than 60 days after the date that the employer provides the department unemployment insurance wage information:
    (i) for the person who is homeless;
    (ii) as required by Subsection 35A-4-305(8); and
    (iii) for each calendar quarter during which the employer pays wages to meet the wage requirement.  


4.    Page 5, Lines 144 through 150 :    

             144          (4) A tax credit certificate under this section:
             145          (a) shall list the amount of tax credit allowable for the taxable year in an amount that
             146      does not exceed $2,000;
             147          (b) shall list the name and
{   taxpayer identification   }        federal employer       number of the employer;

             148          (c) shall list the name,
{   taxpayer   }        Social Security       identification number, and current address of the


             149
     person who is homeless with respect to whom the employer has met the wage requirement; and
             150          (d) may include any other information required by the department.


Spoke for the bill:        Linda Hilton, Coalition of Religious Communities
                Jason Mathis, Salt Lake Chamber and Downtown Alliance
                Pamela Atkinson, citizen
                Jay Blain, Utah Education Association

Spoke against the bill:    Royce Van Tassell, Utah Taxpayers Association

MOTION:    Rep. Cosgrove moved to pass the bill out favorably as amended. The motion passed with Rep. Wilcox voting in opposition and Rep. Anderegg, Rep. Brown, Rep. Knotwell, and Rep. McIff absent for the vote.

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

Chair Wilcox adjourned the meeting at 6:21 p.m.








Ryan D. Wilcox, chair