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February 20, 2004
MEMBERS PRESENT: Rep. Wayne A. Harper, Chair
Rep. Stephen D. Clark, Vice Chair
Rep. Sheryl L. Allen
Rep. Eli H.An derson
Rep. Judy Ann Buff mire
Rep. Scott Daniels
Rep. Craig Frank
Rep. Brad Last
Rep. Susan Lawrence
Rep. Carol Spackman Moss
Rep. Darin G. Peterson
Rep. Gordon E. Snow
MEMBERS ABSENT: Rep. J. Morgan Philpot
Rep. Jack A. Seitz
STAFF: Bryant Howe, Policy Analyst
Michelle Teerlink, Secretary
Note: A list of visitors and a copy of handouts are filed with the committee minutes.
Vice Chair Clark called the meeting to order at 8:09 a.m.
MOTION: Rep. Buffmire moved to approve the minutes of February 16, 2004 and February 18, 2004. The motion passed unanimously with Reps. Allen, Anderson, and Harper absent for the vote.
SB0139 Individual Income Tax - Nonresident Income Amendments (Sen. C. Bramble)
Sen. Bramble introduced the bill and explained it to the committee.
MOTION: Rep. Frank moved to transmit the bill out favorably. The motion passed unanimously with Reps. Allen, Harper, and Anderson absent for the vote.
HB0331 Choice in Health Care (Rep. K. Bryson)
Rep. Bryson introduced the bill and explained it to the committee with the assistance of Dr. Windel Gibby. Clark Newhall, Utah Association Alliance spoke in favor of the bill. John T.
Nelson, Leagal Affairs for IHC, Doug Black, Region Centers for IHC, and Greg Paulson, Vice
President of IHC spoke in opposition.
Rep. Clark turned the chair over to Rep. Harper.
MOTION: Rep. Snow moved to proceed to the next item on the agenda. The motion passed
unanimously.
HB0352 Inheritance Tax Act Amendments (Rep. B. Goodfellow)
MOTION: Rep. Anderson moved to approve the amendment as follows:
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1, Line 24
:
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None
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This bill has retrospective operation to January 1, 2004.
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3, Line 77
:
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estate tax imposed by Section 2001, Internal Revenue Code.
This bill has retrospective operation to January 1, 2004.
The motion passed unanimously.
Rep. Goodfellow introduced the bill and explained it to the committee. Ron Casper,
National Independent Business Association, Wes Quinton, Utah Farm Bureau, and Mike Jerman,
Utah Taxpayers Association spoke in opposition. Richard Ellis, Governor's Office of Planning
Budget spoke in favor of the bill.
MOTION: Rep. Peterson moved to move on to the next item on the agenda.
SUBSTITUTE MOTION: Rep. Daniels moved to pass the bill out favorably. The substitute
motion failed with Reps. Buffmire, Daniels, and Moss voting in favor and Reps. Allen, Anderson,
Frank, Last, Lawrence, Snow, Harper, and Clark voting in opposition. The original motion passed
with Rep. Daniels voting in opposition.
Rep. Harper turned the chair over to Rep. Clark.
HB0260 Tobacco Fund Allocation Amendments (Rep. J. Seitz)
Rep. Harper introduced the bill and explained it to the committee. Dr. Scott Williams,
Department of Health spoke in favor of the bill.
MOTION: Rep. Clark moved to pass the bill out favorably. The motion passed with Rep.
Lawrence voting in opposition.
HB0345 Earned Income Tax Credit (Rep. J. Biskupski)
MOTION: Rep. Daniels moved to approve the amendment as follows:
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2, Line 28
:
28
59-10-136.
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2, Lines 29 through 34
:
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(1) As used in this section:
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(a) "federal adjusted gross income" is as defined in Section 62, Internal Revenue
Code;
31
32
(b) "federal earned income tax credit" means the amount of the federal earned
income
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tax credit an individual is allowed for the taxable year in accordance with Section 32,
Internal
34
Revenue Code
.
]]
; and
(i) is not a resident of this state; and
(ii) has federal adjusted gross income derived from Utah sources as calculated under
Section 59-10-117.
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2, Lines 35 through 37
:
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(2)
For
]]
Subject to Subsection (4), for
taxable years beginning on or
after January 1, 2005, a resident or nonresident
36
individual may claim as provided in this section a refundable earned income tax credit as
37
follows:
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3, Lines 69 through 80
:
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price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
(a) the tax credit calculated under Subsection (2); and
(b) a percentage calculated by dividing the nonresident individual's federal
adjusted gross income derived from Utah sources for the taxable year, as calculated
under Section 59-10-117, by the nonresident individual's total federal adjusted gross
income for that same taxable year.
70
(4)
]]
(5)
A resident or nonresident individual may not claim a tax credit
under this section if
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the resident or nonresident individual's federal adjusted gross income is greater than the
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greatest amount of federal adjusted gross income for which a tax credit is allowed under
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Subsection (2)(c).
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(5)
]]
(6)
A resident or nonresident individual may not carry forward or
carry back the tax
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credit provided for under this section.
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(6)
]]
(7)
In accordance with Title 63, Chapter 46a, Utah Administrative
Rulemaking Act, the
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commission may make rules providing procedures for issuing a refund to a resident or
78
nonresident individual for the tax credit provided for under this section if the tax credit
exceeds
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the resident or nonresident individual's tax liability under this chapter for the taxable year
for
80
which the resident or nonresident individual claims the tax credit.
The motion passed unanimously.
Rep. Biskupski introduced the bill and explained it to the committee.
MOTION: Rep. Buffmire moved to pass the bill out favorably. The motion passed
unanimously.
MOTION: Rep. Allen moved to adjourn the meeting. The motion passed unanimously. The
meeting adjourned at 9:51 a.m. The last two items were not discussed in the meeting.
__________________________
Rep. Wayne A. Harper, Chair