| Members Present: Sen. Howard A. Stephenson, Chair Rep. Steve Eliason, Chair Sen. Curtis S. Bramble Sen. Jim Dabakis Sen. Lincoln Fillmore Sen. Deidre M. Henderson Rep. Joel K. Briscoe Rep. Gage Froerer Rep. Ken Ivory Rep. Karianne Lisonbee Rep. Daniel McCay | Rep. Jefferson Moss Rep. Marie H. Poulson Rep. Tim Quinn Rep. Douglas V. Sagers Rep. Jon E. Stanard Rep. Brad R. Wilson Staff Present: Mr. Bryant R. Howe, Deputy Director Mr. Leif G. Elder, Policy Analyst Ms. Andrea Valenti Arthur, Associate General Counsel Ms. Shannon C. Halverson, Associate General Counsel Mr. Brent M. Gage, Legislative Assistant |
||
|
Note: A copy of related materials and an audio recording of the
meeting can be found at www.le.utah.gov.
|
| 1. Committee Business |
| Chair Stephenson called the meeting to order at 1:28 p.m. |
| MOTION: Sen. Bramble moved to approve the minutes of the May 17, 2017, and the June 21, 2017, meetings.The motion passed with a vote of 11 - 0 - 6 . | |||
| Yeas - 11 | Nays- 0 | Abs- 6 | |
| Sen. C. Bramble Rep. J. Briscoe Rep. S. Eliason Sen. L. Fillmore Rep. G. Froerer Rep. K. Lisonbee Rep. J. Moss Rep. T. Quinn Rep. D. Sagers Rep. J. Stanard Sen. H. Stephenson | Sen. J. Dabakis Sen. D. Henderson Rep. K. Ivory Rep. D. McCay Rep. M. Poulson Rep. B. Wilson |
| 2. Sales Tax Exemption for Products Purchased for Resale |
| Andrea Valenti Arthur explained the draft legislation. |
| 2 - 2018 General Session draft legislation "Sales and Use Tax Exemption Amendments" (2018FL0429) |
| Rebecca Rockwell, Commissioner, Utah State Tax Commission, and John Valentine, Chair, Utah State Tax Commission, spoke to the bill and answered questions. |
| MOTION: Rep. Stanard moved to adopt "Sales and Use Tax Exemption Amendments" (2018FL0429) as a committee bill.The motion passed with a vote of 12 - 0 - 5 . | |||
| Yeas - 12 | Nays- 0 | Abs- 5 | |
| Sen. C. Bramble Rep. J. Briscoe Rep. S. Eliason Sen. L. Fillmore Rep. G. Froerer Rep. K. Lisonbee Rep. J. Moss Rep. M. Poulson Rep. T. Quinn Rep. D. Sagers Rep. J. Stanard Sen. H. Stephenson | Sen. J. Dabakis Sen. D. Henderson Rep. K. Ivory Rep. D. McCay Rep. B. Wilson |
| Sen. Bramble moved to authorize the chairs to open any committee bill files they feel necessary. |
| Rep. Stanard expressed concerns about whether the rules allow the motion. |
| Andrea Valenti Arthur spoke about precedent for the motion. |
| Rep. Briscoe expressed concerns about the motion. |
| Sen. Bramble's motion to authorize the chairs to open any committee bill files they feel necessarypassedwith a vote 9 - 5 - 3 . | |||
| Yeas - 9 | Nays- 5 | Abs- 3 | |
| Sen. C. Bramble Rep. S. Eliason Sen. L. Fillmore Rep. G. Froerer Sen. D. Henderson Rep. K. Lisonbee Rep. T. Quinn Rep. D. Sagers Sen. H. Stephenson | Rep. J. Briscoe Rep. J. Moss Rep. M. Poulson Rep. J. Stanard Rep. B. Wilson | Sen. J. Dabakis Rep. K. Ivory Rep. D. McCay |
| Rep. Eliason moved to open a committee bill file entitled "Homeless Services Amendments." |
| Rep. Briscoe spoke in favor of the motion. |
| Rep. Stanard asked questions about this bill and expressed concerns about a similar bill that was proposed during the 2017 General Session. |
| Rep. Eliason's motion to open a committee bill file entitled "Homeless Services Amendments"passedwith a vote 13 - 0 - 4 . | |||
| Yeas - 13 | Nays- 0 | Abs- 4 | |
| Rep. J. Briscoe Sen. J. Dabakis Rep. S. Eliason Rep. G. Froerer Sen. D. Henderson Rep. K. Lisonbee Rep. J. Moss Rep. M. Poulson Rep. T. Quinn Rep. D. Sagers Rep. J. Stanard Sen. H. Stephenson Rep. B. Wilson | Sen. C. Bramble Sen. L. Fillmore Rep. K. Ivory Rep. D. McCay |
| 3. Income Taxation and Build America Bonds |
| Shannon C. Halverson explained the draft legislation. |
| 3A - 2018 General Session draft legislation "Individual Income Tax Deduction Amendments" (2018FL0430) |
| Rebecca Rockwell, Commissioner, Utah State Tax Commission, spoke to the bill and answered questions. |
| Rep. McCay asked questions regarding the Tax Commission's handling of discrepancies between code and practice. |
| 3B - Utah Code Section 11-14-303 |
| MOTION: Rep. Stanard moved to adopt the "Individual Income Tax Deduction Amendments" (2018FL0430) as a committee bill.The motion passed with a vote of 13 - 0 - 4 . | |||
| Yeas - 13 | Nays- 0 | Abs- 4 | |
| Sen. C. Bramble Rep. S. Eliason Sen. L. Fillmore Sen. D. Henderson Rep. K. Lisonbee Rep. D. McCay Rep. J. Moss Rep. M. Poulson Rep. T. Quinn Rep. D. Sagers Rep. J. Stanard Sen. H. Stephenson Rep. B. Wilson | Rep. J. Briscoe Sen. J. Dabakis Rep. G. Froerer Rep. K. Ivory |
| 4. Military Spouse Income Tax Amendments |
| Shannon C. Halverson explained the draft legislation. |
| 4A - 2018 General Session draft legislation "Military Spouse Income Tax Amendments" (2018FL0427) |
| 4B - Military Spouse Options |
| John Valentine, Chair, Utah State Tax Commission, spoke to the bill and answered questions. |
| MOTION: Rep. Froerer moved to adopt "Military Spouse income Tax Amendments" (2018FL0427) as a committee bill.The motion passed with a vote of 16 - 1 - 0 . | |||
| Yeas - 16 | Nays- 1 | Abs- 0 | |
| Sen. C. Bramble Sen. J. Dabakis Rep. S. Eliason Sen. L. Fillmore Rep. G. Froerer Sen. D. Henderson Rep. K. Ivory Rep. K. Lisonbee Rep. D. McCay Rep. J. Moss Rep. M. Poulson Rep. T. Quinn Rep. D. Sagers Rep. J. Stanard Sen. H. Stephenson Rep. B. Wilson | Rep. J. Briscoe |
| 5. Apportionment of Business Income - Single Sales Factor |
| Andrea Valenti Arthur explained the draft legislation. |
| 5A - 2018 General Session draft legislation "Income Tax Reform" (2018FL0424) |
| John Valentine, Chair, Utah State Tax Commission, spoke about negotiations leading to the bill. |
| Thomas Young, Senior Economist, Office of the Legislative Fiscal Analyst presented on the static fiscal impact of draft legislation "Income Tax Reform." |
| 5B - Fiscal Note - Phasing In Mandatory Single Sales |
| 5C - Mandatory Optional Single Sales - Memo |
| Rebecca Rockwell, Commissioner, Utah State Tax Commission, responded to questions regarding the phasing in of the single sales factor. |
| Greg Fredde, Executive Vice President, Merit Medical Systems Inc., spoke in support of single sales factor and of the growth of Merit Medical Systems Inc. |
| Brian Verwer, Director of Public Affairs, IM Flash Technologies Inc., spoke in support of single sales factor and of the growth of IM Flash Technologies Inc. |
| 5D - IM Flash Presentation |
| Stan Lockhart, Government Affairs Manager, IM Flash Technologies Inc., answered questions regarding the economic impact of IM Flash Technologies Inc. |
| 6. Using Population to Distribute Local Sales Tax Revenue from Remote Sales |
| Chair Stephenson provided background on the issue. |
| Rebecca Rockwell, Commissioner, Utah State Tax Commission, and John Valentine, Chair, Utah State Tax Commission, presented on distribution of local sales tax revenue from remote sales. |
| 6C - Utah State Tax Commission Presentation |
| Roger Tew, Executive Director, League of Cities and Towns, spoke about the interest of cities and towns in this issue. |
| 7. Other Items/Adjourn |
| MOTION: Rep. McCay moved to adjourn.The motion passed with a vote of 10 - 0 - 7 . | |||
| Yeas - 10 | Nays- 0 | Abs- 7 | |
| Rep. J. Briscoe Sen. L. Fillmore Rep. K. Ivory Rep. K. Lisonbee Rep. D. McCay Rep. J. Moss Rep. T. Quinn Rep. D. Sagers Rep. J. Stanard Sen. H. Stephenson | Sen. C. Bramble Sen. J. Dabakis Rep. S. Eliason Rep. G. Froerer Sen. D. Henderson Rep. M. Poulson Rep. B. Wilson |
| Chair Stephenson adjourned the meeting at 4:00 p.m. |