Wednesday, October 16, 2019 | 1:15 PM | 445 State Capitol

1. Committee Business

· Call to order

· Approval of the minutes of the September 18, 2019, meeting

· Open committee bill file(s)

2. Sales Tax Trends

The committee will hear a presentation on nationwide trends in sales tax collections, including factors such as base narrowing, exemptions, and remote sales.

· Dr. William F. Fox, Director, Boyd Center for Business and Economic Research, The University of Tennessee

· Committee discussion/action

3. Report on Overall Tax Burden in Utah

The Utah Foundation recently released a research report on the average tax burden of taxpayers in Utah. The committee will receive a presentation from the authors of the report.

· Representatives from the Utah Foundation

· Committee discussion/action

4. Use and Taxation of Water in Utah

Utah Code Sections 17B-2a-602 and 17B-2a-1003 require metropolitan water districts and water conservancy districts to submit a written report to the committee that describes their revenue breakdown between property taxes, water rates, and other sources. The committee will review and discuss these reports.

· Committee staff

· Representatives from Jordan Valley Water Conservancy District

· Representatives from Upper Sevier River Water Conservancy District

· Committee discussion/action

5. Draft Legislation, “Fuel Sales Tax Amendments”

Current statute provides for different tax treatment for residential, commercial, and industrial uses of fuel. The committee will discuss draft legislation that modifies the process for determining the primary use of fuel, for taxation purposes, in situations where a property receives fuel through a single meter but has more than one type of fuel use at that location.

· Draft legislation 2020FL0664 “Fuel Sales Tax Amendments” – Committee staff

· Public comment

· Committee discussion/Action

6. Draft Legislation, “Tangible Personal Property Revisions”

The committee will discuss draft legislation that would modify the calculation of the inflation adjustment that applies to the personal property tax exemption for tangible personal property with a total aggregate taxable value of $15,000 or less.

· Draft legislation 2020FL0563 “Tangible Personal Property Revisions” – Rep. Lisonbee

· Public comment

· Committee discussion/Action

7. Draft Legislation, “Circuit Breaker Amendments”

The committee will discuss draft legislation that would modify the qualifications for, and calculation of, circuit breaker tax relief.

· Draft legislation 2020FL0666 “Circuit Breaker Amendments” – Sen. Davis/Committee staff

· Public comment

· Committee discussion/Action

8. Required Sunset Reviews

The committee has been assigned the review of three tax provisions that are set to expire in the next year. Income tax credits related to natural gas heavy duty vehicles (59-7-618 & 59-10-1033) are set to be repealed on July 1, 2020. A provision related to distribution of certain revenue generated from a certain local option sales tax (59-12-2219(13)) is set to be repealed on June 30, 2020.

· Committee staff

· Public comment

· Committee discussion/Action

9. Tax Restructuring and Equalization Task Force Update

The committee will receive an update on the progress of the Tax Restructuring and Equalization Task Force.

· Rep. Gibson

· Committee discussion

10. Transient Room Tax

The committee will discuss issues regarding local transient room taxes, including compliance and enforcement.

· Committee staff

· Utah State Tax Commission

· Kaitlin Eskelson, Executive Director, Utah Tourism Association

· Falyn Owens, Executive Director, Garfield County Office of Tourism

· Lesha Coltharp, Director, Uintah County Travel and Tourism

· Public comment

· Committee discussion/Action

11. Required Annual Review of Certain Income Tax Credits

Sections 59-7-159 and 59-10-137 require the Revenue and Taxation Interim Committee each year to review certain tax credits and make recommendations concerning whether the tax credits should be continued, modified, or repealed.

The tax credits under review in this meeting are authorized in 59-7-610, 59-10-1007, and 59-10-1018.

· Committee staff

· Public comment

· Committee discussion/Action

12. Other Items/Adjourn