| Members Present: Sen. Daniel McCay, Chair Rep. Robert M. Spendlove, Chair Sen. Curtis S. Bramble Sen. Gene Davis Sen. Lincoln Fillmore Sen. Chris H. Wilson Rep. Stewart E. Barlow Rep. Joel K. Briscoe Rep. Walt Brooks Rep. Jennifer Dailey-Provost Rep. Steve Eliason Rep. Rosemary T. Lesser Rep. A. Cory Maloy | Rep. Jefferson Moss Rep. Adam Robertson Rep. Douglas V. Sagers Rep. Travis M. Seegmiller Rep. Mark A. Strong Members Absent: Rep. Nelson T. Abbott Staff Present: Julie Humberstone, Policy Analyst Alex R. Janak, Policy Analyst Andrea Valenti Arthur, Associate General Counsel Christine R. Gilbert, Associate General Counsel Naomi Garrow, Office 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 Spendlove called the meeting to order at 1:43 p.m. |
| MOTION:Senator McCay moved to approve the minutes of May 18, 2021, committee meeting.The motion passed with a vote of 15-0-4. | |||
| Yeas - 15 | Nays- 0 | Abs- 4 | |
| Rep. S. Barlow Rep. J. Briscoe Rep. J. Dailey-Provost Sen. G. Davis Rep. S. Eliason Sen. L. Fillmore Rep. R. Lesser Rep. A. Maloy Sen. D. McCay Rep. J. Moss Rep. A. Robertson Rep. D. Sagers Rep. T. Seegmiller Rep. R. Spendlove Rep. M. Strong | Rep. N. Abbott Sen. C. Bramble Rep. W. Brooks Sen. C. Wilson |
| 2.Utah Rural Jobs Act Audit Review |
| Darin Underwood, Deputy Auditor General, Office of the Legislative Auditor General, introduced the audit of the Utah Rural Jobs Act to the Revenue and Taxation Interim Committee. |
| Nicole Luscher, Audit Supervisor, Office of the Legislative Auditor General, discussed the audit and answered questions from the committee. |
| Kori Ann Edwards, Managing Director of Operations, Governor's Office of Economic Development (GOED), responded to the audit and answered questions from the committee. |
| Jim Grover, Director of Compliance, GOED, presented on rural investment companies and answered questions from the committee. |
| Ryan Dressler, Vantage Capital Alliance, provided public comment. |
| Carling Dinkler, Head of Public Affairs, Enhanced Capital, provided public comment. |
| MOTION:Senator Fillmore moved to open a committee bill file to add a sunset to the program and to give GOED and the Tax Commission authority to share data. Discussion to the motion.The motion passed with a vote of 16-0-3. | |||
| Yeas - 16 | Nays- 0 | Abs- 3 | |
| Rep. S. Barlow Sen. C. Bramble Rep. J. Briscoe Rep. W. Brooks Rep. J. Dailey-Provost Rep. S. Eliason Sen. L. Fillmore Rep. R. Lesser Rep. A. Maloy Sen. D. McCay Rep. A. Robertson Rep. D. Sagers Rep. T. Seegmiller Rep. R. Spendlove Rep. M. Strong Sen. C. Wilson | Rep. N. Abbott Sen. G. Davis Rep. J. Moss |
| 3.Overview of Federal American Rescue Plan Act (ARPA) Provisions |
| Christine R. Gilbert gave an overview of the federal American Rescue Plan Act and answered questions. |
| Melissa Holyoak, Solicitor General, Utah Attorney General's Office, gave an update on the lawsuit related to the prohibition on using ARPA funds for state tax cuts and answered questions. |
| Julie Humberstone and Alex Janak gave a presentation on the Paycheck Protection Program and answered questions. |
| Susan Speirs, CEO, Utah Association of CPAs, and John Valentine, Chairman, Utah State Tax Commission, answered questions from the committee. |
| 4.Telecommunications Taxation |
| Senator Bramble spoke to telecommunications taxation. |
| 5.Property Tax Issues |
| Christine R. Gilbert gave a brief overview on S.B. 52, "Property Tax Deferral Modifications," from the 2021 General Session. |
| Senator Fillmore presented on property tax relief and answered questions. |
| MOTION:Senator Fillmore moved to open a committee bill file on the property tax deferral program. Discussion to the motion.The motion passed with a vote of 11-0-8. | |||
| Yeas - 11 | Nays- 0 | Abs- 8 | |
| Rep. S. Barlow Rep. W. Brooks Sen. G. Davis Sen. L. Fillmore Rep. R. Lesser Rep. A. Maloy Rep. A. Robertson Rep. D. Sagers Rep. R. Spendlove Rep. M. Strong Sen. C. Wilson | Rep. N. Abbott Sen. C. Bramble Rep. J. Briscoe Rep. J. Dailey-Provost Rep. S. Eliason Sen. D. McCay Rep. J. Moss Rep. T. Seegmiller |
| 6.Utility Adjustment Calculation for Circuit Breaker Rent Relief |
| Rebecca Rockwell, Commissioner, Utah State Tax Commission, spoke to the utility adjustment calculation for circuit breaker rent relief and answered questions from the committee. |
| MOTION: Senator Davis moved to open a bill file to continue discussion on this item and find consensus on an updated calculation method for the Tax Commission to use.The motion passed with a vote of 10-0-9. | |||
| Yeas - 10 | Nays- 0 | Abs- 9 | |
| Rep. S. Barlow Rep. W. Brooks Sen. G. Davis Sen. L. Fillmore Rep. R. Lesser Rep. A. Maloy Rep. D. Sagers Rep. R. Spendlove Rep. M. Strong Sen. C. Wilson | Rep. N. Abbott Sen. C. Bramble Rep. J. Briscoe Rep. J. Dailey-Provost Rep. S. Eliason Sen. D. McCay Rep. J. Moss Rep. A. Robertson Rep. T. Seegmiller |
| 7.Electing Small Business Trust (ESBT) S-corp Subtraction from Income |
| John L. Valentine, Chair, Utah State Tax Commission, spoke to the issue and answered questions from the committee. |
| Sen. McCay assumed the chair. |
| Rep. Spendlove resumed the chair. |
| MOTION:Representative Sagers moved to adjourn the meeting at 3:59 p.m.The motion passed with a vote of 11-0-8. | |||
| Yeas - 11 | Nays- 0 | Abs- 8 | |
| Rep. S. Barlow Rep. W. Brooks Sen. G. Davis Sen. L. Fillmore Rep. R. Lesser Rep. A. Maloy Sen. D. McCay Rep. D. Sagers Rep. R. Spendlove Rep. M. Strong Sen. C. Wilson | Rep. N. Abbott Sen. C. Bramble Rep. J. Briscoe Rep. J. Dailey-Provost Rep. S. Eliason Rep. J. Moss Rep. A. Robertson Rep. T. Seegmiller |