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MINUTES OF THE
SENATE REVENUE AND TAXATION STANDING COMMITTEE

FRIDAY, FEBRUARY 3, 2004
ROOM 131, STATE CAPITOL BUILDING



Members Present:    Sen. Curtis Bramble, Chair
    Sen. Ron Allen
    Sen. Gregory Bell
    Sen. Leonard M. Blackham
    Sen. Mike Dmitrich
    Sen. David Gladwell.
    Sen. Howard A. Stephenson
    Sen. Michael Waddoups

Staff Present:    Bryant Howe, Policy Analyst
    Jeanne Wride, Committee Secretary
    
Public Speakers Present:     Dirk Anjewierden, Utah Health Care Association
    Peter Hebertson, Salt Lake County Director Ombudsman
    Deb Burcombe, Utah Health Care Association
    Dr. Scott Williams, Director, Utah Department of Health
    Doug Springmeyer, Asst. Attorney General
    Roger Tew, Utah League of Cities and Towns
    Gary Crane, Layton City Attorney
    Mike Jerman, Utah Taxpayers Association
    Kathy Berk, Utah Division of Corporations
    Boyd Black, The Church of Jesus Christ of Latter Day Saints, Attorney
    Betty Arial, Envirocare
    Mark Johnson, Utah State Tax Commission

A list of visitors and a copy of handouts are filed with the committee minutes.

Chair Bramble called the meeting to order at 8:13 a.m.
    
APPROVAL OF MINUTES:

    MOTION:
Sen. Bell moved to approve the minutes of January 30th. 2004..

    The motion passed unanimously with Sen. Dmitrich and Sen. Waddoups absent for the vote.     
1.     S.B. 128 LONG-TERM CARE FACILITIES AMENDMENTS (Sen. L. Blackham)

    MOTION:
Sen. Blackham moved to substitute S.B. 128 with 1st. Substitute S. B. 128.



    The motion passed unanimously with Sen. Dmitrich and Sen. Waddoups absent for the vote.              Sen. Blackham presented the bill to the committee.

    Dirk Anjewierden, Executive Director, Utah Health Care Association; Deb Burcombe, Utah     Health Care Association, Peter Hebertson, Salt Lake County Director, Ombudsam; and Dr.     Scott Williams, Director Utah Department of Health; spoke to the bill.     .
     MOTION: Sen. Gladwell moved to pass 1st Sub. S. B. 128 out of committee with a     favorable recommendation.

    The motion passed unanimously with Sen. Waddoups absent for the vote.

2.     S.B. 124 PROHIBITION ON SALES AND USE TAX INCENTIVE PAYMENTS BY A MUNICIPALITY (Sen. Killpack)

    
Sen. Stephenson assumed the chair.

    Sen. Killpack presented the bill to the committee.

    Roger Tew, Utah League of Cities and Towns; Gary Crane, Layton City Attorney; and Mike     Jerman, Utah Taxpayers Association; spoke to the bill.

     MOTION: Sen. Bell moved to pass S.B. 124 out of committee with a favorable     recommendation.

    The motion passed with Sen. Bramble, Sen. Blackham and Sen. Waddoups absent for the     vote.     

3.     S. B. 144 CORPORATIONS SOLE AMENDMENTS (Sen. L. Hillyard)

    
Sen. Hillyard presented the bill to the committee.

    Kathy Berk, Utah Division of Corporations and Boyd Black, The Church of Jesus Christ of     Latter Day Saints, Attorney; spoke to the bill.

    MOTION:
Sen. Bell moved to pass SB 144 out of committee with a favorable recommendation.

    The motion passed unanimously with Sen. Bramble, Sen. Blackham, and Sen. Waddoups      absent for the vote.


    Sen. Bramble assumed the chair.

4. H.B. 13 HAZARDOUS WASTE AND NONHAZARDARDOUS SOLID WASTE     FEE AND TAX AMENDMENTS (Rep. E. Anderson)

    
Rep. Anderson presented the bill to the committee.

    Betty Arial, Envirocare, spoke in favor of the bill.

    MOTION: Sen. Allen moved to pass H.B. 13 out of committee with a favorable     recommendation.

    The motion passed unanimously with Sen. Blackham absent for the vote.

    Sen. Stephenson assumed the chair.

5.    S. B. 139 INDIVIDUAL INCOME TAX-NONRESIDENT INCOME AMENDMENTS     (Sen. C. Bramble)

    Sen. Bramble presented the bill to the committee.

    MOTION:
Sen. Stephenson moved to amend the bill as follows:

1.    Page 1, Line 12 :    

             12          .    provides
  and modifies       definitions;


2.    Page 2, Line 29 :    

             29          59-10-116. Tax on nonresident
[[  individual's state taxable income   ]]       individual       -- Calculation --


3.    Page 2, Lines 40 through 42 :    

             40      the compensation the servicemember receives for military service if the servicemember is
[[  :

             41          (A) a nonresident; and
             42          (B)  
]]
serving in compliance with military orders; and

4.    Page 2, Lines 43 through 53 :    

             43          [(b)] (d) "
  unapportioned       state      [[  taxable income   ]]       tax       " means the product of the:

             44          (i) difference between:


             45          (A) a nonresident individual's[: (i)] federal taxable income, as defined in Section
             46      59-10-111 , with the modifications, subtractions, and adjustments provided for in Section
             47      59-10-114 ; and
             48          (B) if the nonresident individual described in Subsection (1)(d)(i)(A) is a
             49      servicemember, compensation the servicemember receives for military service if the
             50      servicemember is
[[  :

             51          (I) a nonresident; and
             52          (II)  
]]
serving in compliance with military orders; and
             53          (ii) tax
  rate       imposed under Section 59-10-104 .


5.    Page 2, Lines 54 through 57 :    

             54          (2)
[[  (a)   ]] Except as provided in Subsection (3), a tax is imposed      [[  as provided in this

             55      section on the state taxable income calculated under this section of  
]]
  on       a nonresident individual      [[  .

             56          (b) The tax under this section shall be calculated by multiplying  
]]
  in an amount equal to the product of       the nonresident

             57      individual's
  :

(a) unapportioned  
state      [[  taxable income by the nonresident individual's   ]]       tax; and

(b)  
state income tax percentage.


    
The motion passed unanimously with Sen. Blackham and Sen. Waddoups absent     for the vote.

     MOTION: Sen. Bramble moved to pass S. B. 134 out of committee, as amended, with     a favorable recommendation.

    The motion passed with Sen. Blackham and Sen. Waddoups absent for the vote.     
6.    H. B. 204 PUBLIC UTILITIES REVISIONS (Rep. G. Curtis)

    
Sen. Bramble presented the bill to the committee.

    Rep. Curtis also presented the bill.


     MOTION: Sen Bramble moved to pass H. B. 204 out of committee with a favorable     recommendation.

    The motion passed unanimously with Sen. Blackham and Sen. Waddoups absent for the     vote.     

     MOTION: Sen. Dmitrich moved to adjourn.

    The motion passed unanimously.

    Chair Stephenson adjourned the meeting at 9:40 a.m.
    
Minutes recorded by Jeanne Wride, Committee Secretary


        
            _______________________________
            Sen. Curtis Bramble, Committee Chair