| Members Present: Sen. Howard A. Stephenson, Chair Rep. Steve Eliason, Chair 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. Travis M. Seegmiller Members Absent: Sen. Curtis S. Bramble Rep. Brad R. Wilson Staff Present: Mr. Alex R. Janak, Policy Analyst Ms. Shannon C. Halverson, Associate General Counsel Ms. Tracy J. Nuttall, Associate General Counsel Mr. Brent M. Gage, Administrative Assistant |
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Note: A copy of related materials and an audio recording of the
meeting can be found at www.le.utah.gov.
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| 1. Committee Business |
| Chair Stephenson called the meeting to order at 8:13 a.m. and discussed study items the committee was unable to this year due to time constraints. |
| 2. Repatriation Transition Tax |
| Ms. Nuttall presented an overview of draft legislation "Repatriation Transition Tax Amendments" (2019FL0788). |
| 2 - 2019 General Session draft legislation "Repatriation Transition Tax Amendments" (2019FL0788) |
| John L. Valentine, Chair, Utah State Tax Commission, spoke in favor of the draft legislation. |
| 3. Earned Income Tax Credit |
| Mr. Janak presented an overview of draft legislation "Income Tax Code Amendments" (2019FL0328) and draft legislation "Earned Income Tax Credit Amendments" (2019FL0610). |
| 3 - 2019 General Session draft legislation "Income Tax Code Amendments" (2019FL0328) |
| 3 - 2019 General Session draft legislation "Earned Income Tax Credit Amendments" (2019FL0610) |
| Rep. Norman K Thurston presented on intergenerational poverty and a proposal for a state Earned Income Tax Credit. |
| 3 - Intergenerational Poverty Presentation |
| Rep. Adam Robertson presented on 529 savings plans. |
| MOTION: Rep. Sagers moved to recommend file 2019FL0328 version 9. The motion failed with a vote of 3-6-8. | |||
| Yeas - 3 | Nays-6 | Abs-8 | |
| Rep. S. Eliason Rep. D. Sagers Sen. H. Stephenson | Rep. J. Briscoe Sen. L. Fillmore Sen. D. Henderson Rep. D. McCay Rep. M. Poulson Rep. T. Quinn | Sen. C. Bramble Sen. J. Dabakis Rep. G. Froerer Rep. K. Ivory Rep. K. Lisonbee Rep. J. Moss Rep. T. Seegmiller Rep. B. Wilson |
| MOTION: Rep. Eliason moved to approve the minutes of the October 17, 2018 meeting. The motion passed with a vote of 9-0-8. | |||
| Yeas - 9 | Nays-0 | Abs-8 | |
| Rep. J. Briscoe Rep. S. Eliason Sen. L. Fillmore Sen. D. Henderson Rep. D. McCay Rep. M. Poulson Rep. T. Quinn Rep. D. Sagers Sen. H. Stephenson | Sen. C. Bramble Sen. J. Dabakis Rep. G. Froerer Rep. K. Ivory Rep. K. Lisonbee Rep. J. Moss Rep. T. Seegmiller Rep. B. Wilson |
| 4. Repatriation Transition Tax |
| MOTION: Rep. Sagers moved to recommend file 2019FL0788 version 4. The motion passed with a vote of 10-1-6. | |||
| Yeas - 10 | Nays-1 | Abs-6 | |
| Rep. J. Briscoe Rep. S. Eliason Sen. L. Fillmore Rep. G. Froerer Sen. D. Henderson Rep. K. Lisonbee Rep. D. McCay Rep. M. Poulson Rep. D. Sagers Sen. H. Stephenson | Rep. T. Quinn | Sen. C. Bramble Sen. J. Dabakis Rep. K. Ivory Rep. J. Moss Rep. T. Seegmiller Rep. B. Wilson |
| 5. Property Tax Valuation Process |
| Rep. Timothy D. Hawkes presented an overview of draft legislation "Property Tax Amendments" (2019FL0039). |
| 4 - 2019 General Session draft legislation "Property Tax Amendments" (2019FL0039) |
| Mr. Valentine stated the tax commission hasn't taken a position on the draft legislation. |
| MOTION: Rep. Briscoe moved to adopt file 2019FL0039 version 14 as a committee bill with a favorable recommendation. The motion passed with a vote of 12-0-5. | |||
| Yeas - 12 | Nays-0 | Abs-5 | |
| Rep. J. Briscoe Rep. S. Eliason Sen. L. Fillmore Rep. G. Froerer Sen. D. Henderson Rep. K. Ivory Rep. K. Lisonbee Rep. D. McCay Rep. M. Poulson Rep. D. Sagers Rep. T. Seegmiller Sen. H. Stephenson | Sen. C. Bramble Sen. J. Dabakis Rep. J. Moss Rep. T. Quinn Rep. B. Wilson |
| 6. Tax Commission Amendments |
| Mr. Janak presented an overview of draft legislation "Tax Commission Amendments" (2019FL0341). |
| 5 - 2019 General Session draft legislation "Tax Commission Amendments" (2019FL0341) |
| Rebecca Rockwell, Commissioner, Utah State Tax Commission, thanked the committee for enacting S.B. 17 in 2017 and spoke of its positive effects on the tax commission. |
| MOTION: Rep. Briscoe moved to recommend file 2019FL0341 version 2. The motion passed with a vote of 11-0-6. | |||
| Yeas - 11 | Nays-0 | Abs-6 | |
| Rep. J. Briscoe Rep. S. Eliason Rep. G. Froerer Sen. D. Henderson Rep. K. Ivory Rep. K. Lisonbee Rep. D. McCay Rep. M. Poulson Rep. D. Sagers Rep. T. Seegmiller Sen. H. Stephenson | Sen. C. Bramble Sen. J. Dabakis Sen. L. Fillmore Rep. J. Moss Rep. T. Quinn Rep. B. Wilson |
| 7. Tax Exemptions, Deferrals, and Abatements |
| Ms. Nuttall presented an overview of draft legislation "Property Tax Exemptions, Deferrals, and Abatements Amendments" (2019FL0340). |
| 6 - 2019 General Session draft legislation "Property Tax Exemptions, Deferrals, and Abatements Amendments" (2019FL0340) |
| Ms. Rockwell gave the tax commission's position on the draft legislation. |
| MOTION: Rep. McCay moved to recommend file 2019FL0340 version 5. The motion passed with a vote of 13-0-4. | |||
| Yeas - 13 | Nays-0 | Abs-4 | |
| Rep. J. Briscoe Rep. S. Eliason 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. T. Seegmiller Sen. H. Stephenson | Sen. C. Bramble Sen. J. Dabakis Sen. L. Fillmore Rep. B. Wilson |
| 8. Nexus Standard for Utah Corporate Income Tax |
| Mr. Janak presented an overview of draft legislation "Income Tax Revisions" (2019FL0520). |
| 7 - 2019 General Session draft legislation "Income Tax Revisions" (2019FL0520) |
| Mr. Valentine gave the tax commission's position on the draft legislation. |
| Billy Hesterman, Holland & Hart, spoke about a potential $100,000 sales threshold to establish nexus. |
| Ms. Rockwell spoke about options for implementing a threshold. |
| MOTION: Rep. Eliason moved to recommend file 2019FL0520 version 5. The motion passed with a vote of 13-0-4. | |||
| Yeas - 13 | Nays-0 | Abs-4 | |
| 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. T. Seegmiller Sen. H. Stephenson | Sen. C. Bramble Rep. J. Briscoe Sen. J. Dabakis Rep. B. Wilson |
| 9. Business Tangible Personal Property Tax Exemption |
| Chair Stephenson spoke about previous discussions on the topic. |
| Ms. Nuttall presented an overview of draft legislation "Proposal to Amend Utah Constitution - Tangible Personal Property Tax Exemption" (2019FL0848) and draft legislation "Tangible Personal Property Amendments" (2019FL0849). |
| 8 - 2019 General Session draft legislation "Proposal to Amend Utah Constitution - Tangible Personal Property Tax Exemption" (2019FL0848) |
| 8 - 2019 General Session draft legislation "Tangible Personal Property Amendments" (2019FL0849) |
| Mr. Valentine gave the tax commission's position on the draft legislation. |
| MOTION: Rep. McCay moved to recommend file 2019FL0848 version 4. The motion passed with a vote of 13-0-4. | |||
| Yeas - 13 | Nays-0 | Abs-4 | |
| 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. T. Seegmiller Sen. H. Stephenson | Sen. C. Bramble Rep. J. Briscoe Sen. J. Dabakis Rep. B. Wilson |
| MOTION: Rep. Sagers moved to recommend file 2019FL0849 version 3. The motion passed with a vote of 13-0-4. | |||
| Yeas - 13 | Nays-0 | Abs-4 | |
| 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. T. Seegmiller Sen. H. Stephenson | Sen. C. Bramble Rep. J. Briscoe Sen. J. Dabakis Rep. B. Wilson |
| 10. Statutorily Required Income Tax Credits Review |
| Mr. Janak presented the Required Reviews of Income Tax Credits document. |
| 9 - Required Reviews of Income Tax Credits |
| 11. Income Tax Credits Cleanup and Potential Income Tax Rate Change |
| Chair Stephenson presented an overview of draft legislation "Modifications to Tax" (2019FL0790). |
| 10 - 2019 General Session draft legislation "Modifications to Tax" (2019FL0790) |
| Mr. Janak presented on the legislative options for the draft legislation. |
| Lynne Ward, Executive Director, my529, spoke about how the bill might affect my529. |
| Rep. McCay moved to recommend file 2019FL0790 version 6 with the provision that 4.95% be changed to 4.9% throughout the bill. |
| SUBSTITUTE MOTION: Rep. Seegmiller moved to recommend file 2019FL0790 version 6 with the provision that 4.95% be changed to 4.85% throughout the bill. The substitute motion failed with a vote of 5-6-6. | |||
| Yeas - 5 | Nays-6 | Abs-6 | |
| Sen. L. Fillmore Rep. K. Ivory Rep. D. McCay Rep. T. Seegmiller Sen. H. Stephenson | Sen. D. Henderson Rep. K. Lisonbee Rep. J. Moss Rep. M. Poulson Rep. T. Quinn Rep. D. Sagers | Sen. C. Bramble Rep. J. Briscoe Sen. J. Dabakis Rep. S. Eliason Rep. G. Froerer Rep. B. Wilson |
| Rep. McCay withdrew the motion. |
| 12. Achieving a Better Life Experience (ABLE) |
| Mr. Janak presented an overview of draft legislation "ABLE Act Amendments" (2019FL0797). |
| 11 - 2019 General Session draft legislation "ABLE Act Amendments" (2019FL0797) |
| Ms. Ward discussed ABLE programs and spoke to the draft legislation. |
| Kevin Burt, Director, Unemployment Insurance Division, Department of Workforce Services, gave the department's position on the draft legislation. |
| 13. Definition of Domicile for Income Tax Purposes |
| Ms. Halverson presented an overview of draft legislation "Income Tax Domicile Amendments" (2019FL0364). |
| 12 - 2019 General Session draft legislation "Income Tax Domicile Amendments" (2019FL0364) |
| 14. Statutorily-required Study (Section 59-2-1007) |
| Rep. McCay reported on the process for a county to object to an assessment of property assessed by the Tax Commission. |
| 15. Review of the Legislative Auditor General's Recent Audit of the Utah State Tax Commission |
| Scott Smith, Executive Director, Utah State Tax Commission, discussed the Legislative Auditor General's recent audit of the Utah State Tax Commission. |
| 16. Other Items/Adjourn |
| Members of the committee spoke to Chair Stephenson's legislative career. |
| MOTION: Rep. McCay moved to adjourn. The motion passed with a vote of 9-0-8. | |||
| Yeas - 9 | Nays-0 | Abs-8 | |
| Rep. J. Briscoe Sen. L. Fillmore Rep. K. Lisonbee Rep. D. McCay Rep. J. Moss Rep. M. Poulson Rep. T. Quinn Rep. D. Sagers Sen. H. Stephenson | Sen. C. Bramble Sen. J. Dabakis Rep. S. Eliason Rep. G. Froerer Sen. D. Henderson Rep. K. Ivory Rep. T. Seegmiller Rep. B. Wilson |
| Chair Stephenson adjourned the meeting at 10:36 a.m. |