| Members Present: Sen. Lincoln Fillmore, Chair Rep. Robert M. Spendlove, Chair Sen. Curtis S. Bramble Sen. Gene Davis Sen. Deidre M. Henderson Rep. Stewart E. Barlow Rep. Joel K. Briscoe Rep. Brad M. Daw Rep. Steve Eliason Rep. Francis D. Gibson Rep. Val L. Peterson Rep. Tim Quinn Rep. Douglas V. Sagers | Rep. Rex P. Shipp Rep. Norman K. Thurston Members Absent: Sen. Daniel Hemmert Rep. Bradley G. Last Rep. Jefferson Moss Rep. Andrew Stoddard Staff Present: Mr. Ryan M. Hunter, Policy Analyst Mr. Alex R. Janak, Policy Analyst Ms. Andrea Valenti Arthur, Associate General Counsel Ms. Christine R. Gilbert, Associate General Counsel Mr. Jesse Dowdle, 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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| Chair Spendlove called the meeting to order. |
| 1. Committee Business |
| MOTION: Rep. Sagers moved to approve the minutes of the September 18, 2019, meeting. The motion passed with a vote of 11-0-8. | |||
| Yeas - 11 | Nays-0 | Abs-8 | |
| Rep. S. Barlow Sen. C. Bramble Rep. J. Briscoe Sen. G. Davis Rep. S. Eliason Sen. D. Henderson Rep. T. Quinn Rep. D. Sagers Rep. R. Shipp Rep. R. Spendlove Rep. N. Thurston | Rep. B. Daw Sen. L. Fillmore Rep. F. Gibson Sen. D. Hemmert Rep. B. Last Rep. J. Moss Rep. V. Peterson Rep. A. Stoddard |
| 2. Use and Taxation of Water in Utah |
| Sen. Fillmore assumed the chair. |
| Ryan M. Hunter, Policy Analyst, Office of Legislative Research and General Counsel, explained the statutory requirement regarding revenue breakdown reports from water conservancy districts and metropolitan water districts. |
| Richard Bay, General Manager, Jordan Valley Water Conservancy District, and Dave Martin, CFO, Jordan Water Conservancy District, explained their water district's revenue breakdown and responded to questions from committee. |
| Camille Moore, Secretary, Upper Seview Water Conservancy District, explained their water district's revenue breakdown and responded to questions from committee. |
| 4 - Water District Revenue Reports |
| MOTION: Rep. Thurston moved to open a committee bill file for the captive insurance issue. The motion passed with a vote of 13-0-6. | |||
| Yeas - 13 | Nays-0 | Abs-6 | |
| Rep. S. Barlow Sen. C. Bramble Rep. J. Briscoe Sen. G. Davis Rep. B. Daw Rep. S. Eliason Sen. L. Fillmore Sen. D. Henderson Rep. V. Peterson Rep. D. Sagers Rep. R. Shipp Rep. R. Spendlove Rep. N. Thurston | Rep. F. Gibson Sen. D. Hemmert Rep. B. Last Rep. J. Moss Rep. T. Quinn Rep. A. Stoddard |
| 3. Sales Tax Trends |
| Dr. William F. Fox, Director, Boyd Center for Business and Economic Research, The University of Tennessee, presented on sales tax disrupters in Utah and responded to questions from the committee. |
| 2 - Sales Tax Disrupters in Utah |
| 4. Report on Overall Tax Burden in Utah |
| Christopher Collard, Research Analyst, Utah Foundation, presented a report on Utah's tax burden. |
| 3 - Tax Burden Presentation |
| 5. Draft Legislation, "Fuel Sales Tax Amendments" |
| Christine R. Gilbert, Associate General Counsel, Office of Legislative Research and General Counsel, spoke to the draft legislation. |
| Rebecca Rockwell, Commissioner, Utah State Tax Commission, spoke in favor of the bill. |
| 5 - "Fuel Sales Tax Amendments" - 2020FL0664, version 2 |
| MOTION: Sen. Davis moved to recommend "Fuel Sales Tax Amendments" - 2020FL0664, version 2. The motion passed with a vote of 12-0-7. | |||
| Yeas - 12 | Nays-0 | Abs-7 | |
| Rep. S. Barlow Sen. C. Bramble Rep. J. Briscoe Sen. G. Davis Rep. B. Daw Rep. S. Eliason Sen. L. Fillmore Rep. V. Peterson Rep. T. Quinn Rep. D. Sagers Rep. R. Shipp Rep. N. Thurston | Rep. F. Gibson Sen. D. Hemmert Sen. D. Henderson Rep. B. Last Rep. J. Moss Rep. R. Spendlove Rep. A. Stoddard |
| 6. Draft Legislation, "Tangible Personal Property Revisions" |
| Rep. Lisonbee spoke to the draft legislation. |
| John L. Valentine, Chair, Utah State Tax Commission, spoke in favor of the bill. |
| 6 - "Tangible Personal Property Revisions" - 2020FL0563, version 2 |
| MOTION: Rep. Thurston moved to recommend "Tangible Personal Property Revisions" - 2020FL0563, version 2. The motion passed with a vote of 12-0-7. | |||
| Yeas - 12 | Nays-0 | Abs-7 | |
| Rep. S. Barlow Sen. C. Bramble Rep. J. Briscoe Sen. G. Davis Rep. B. Daw Sen. L. Fillmore Rep. V. Peterson Rep. T. Quinn Rep. D. Sagers Rep. R. Shipp Rep. R. Spendlove Rep. N. Thurston | Rep. S. Eliason Rep. F. Gibson Sen. D. Hemmert Sen. D. Henderson Rep. B. Last Rep. J. Moss Rep. A. Stoddard |
| 7. Draft Legislation, "Circuit Breaker Amendments" |
| Sen. Davis spoke to the draft legislation. |
| Andrea Valenti Arthur, Associate General Counsel, Office of Legislative Research and General Counsel, further explained the draft legislation and responded to questions from the committee. |
| Rebecca Rockwell spoke in favor of the bill. |
| Steve Erickson, Crossroads Urban Center, spoke in favor of the bill. |
| 7 - "Circuit Breaker Amendments" - 2020FL0666, version 4 |
| MOTION: Sen. Davis moved to recommend "Circuit Breaker Amendments" - 2020FL0666 version 4. The motion passed with a vote of 11-0-8. | |||
| Yeas - 11 | Nays-0 | Abs-8 | |
| Rep. S. Barlow Rep. J. Briscoe Sen. G. Davis Rep. B. Daw Sen. L. Fillmore Rep. V. Peterson Rep. T. Quinn Rep. D. Sagers Rep. R. Shipp Rep. R. Spendlove Rep. N. Thurston | Sen. C. Bramble Rep. S. Eliason Rep. F. Gibson Sen. D. Hemmert Sen. D. Henderson Rep. B. Last Rep. J. Moss Rep. A. Stoddard |
| 8. Required Sunset Reviews |
| Ryan M. Hunter spoke to required sunset reviews. |
| MOTION: Sen. Davis moved to open a committee bill file to remove the certain sunset and extend it by ten years. The motion passed with a vote of 10-0-9. | |||
| Yeas - 10 | Nays-0 | Abs-9 | |
| Rep. S. Barlow Rep. J. Briscoe Sen. G. Davis Rep. B. Daw Sen. L. Fillmore Rep. V. Peterson Rep. T. Quinn Rep. D. Sagers Rep. R. Shipp Rep. R. Spendlove | Sen. C. Bramble Rep. S. Eliason Rep. F. Gibson Sen. D. Hemmert Sen. D. Henderson Rep. B. Last Rep. J. Moss Rep. A. Stoddard Rep. N. Thurston |
| 9. Tax Restructuring and Equalization Task Force Update |
| Chair Spendlove updated the committee on the progress of the Tax Restructuring and Equalization Task Force. |
| 10. Transient Room Tax |
| Scott Smith, Executive Director, Utah State Tax Commission, and John L. Valentine spoke to tax compliance and enforcement and responded to questions from the committee. |
| 10 - Tax Compliance and Enforcement |
| Kaitlin Eskelson, Executive Director, Utah Tourism Industry Association, Falyn Owens, Executive Director, Garfield County Office of Tourism, David Tebbs, Garfield County Commission, Lesha Coltharp, Director, Uintah County Travel and Tourism, and Camille Moore, Garfield County Auditor, presented on problems with local transient room tax compliance. |
| John L. Valentine and Scott Smith answered questions from the committee. |
| 11. Required Sunset Reviews |
| Ryan M. Hunter presented an additional sunset review to the committee. |
| 12. Required Annual Review of Certain Income Tax Credits |
| Ryan M. Hunter presented a review on the recycling market zone tax credit sunset. |
| MOTION: Rep. Spendlove moved to adjourn. The motion passed with a vote of 10-0-9. | |||
| Yeas - 10 | Nays-0 | Abs-9 | |
| Rep. S. Barlow Sen. C. Bramble Rep. S. Eliason Sen. L. Fillmore Rep. F. Gibson Rep. T. Quinn Rep. D. Sagers Rep. R. Shipp Rep. R. Spendlove Rep. N. Thurston | Rep. J. Briscoe Sen. G. Davis Rep. B. Daw Sen. D. Hemmert Sen. D. Henderson Rep. B. Last Rep. J. Moss Rep. V. Peterson Rep. A. Stoddard |
| Chair Fillmore adjourned the meeting. |