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MINUTES OF THE
SENATE REVENUE AND TAXATION STANDING COMMITTEE
JANUARY 28, 2005
Members Present: Sen. Curtis Bramble, Chair
Sen. Ron Allen
Sen. Gregory Bell
Sen. Darin G. Peterson
Sen. Howard A. Stephenson
Sen. Lyle Hillyard
Members Excused: Sen. Mike Dmitrich
Sen. John Valentine.
Staff Present: Bryant Howe, Policy Analyst
Jeanne Wride, Committee Secretary
Public Speakers Present: Kris Poulson, Utah County Assessor Lee Gardner. Salt Lake County Assessor
Pamela Silberman, Utah Issues
Jim Olson, Utah Food Industry Association
Edwin Rutan, Attorney Salt Lake City Corporation
Mayor Mont Evans, Utah Restaurant Association
Kyle Wulle, PACE 8-593
Melva Sine, Utah Restaurant Association
Kent Anderson, CWA 7704
Greg Gruber, Restaurant Owner
George Neckel, Utah Jobs for Justice
Lorna Vogt, UPNet
Keith Prescott, Tax Review Commission
Mark Buchi, Attorney
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 8:20 a.m.
APPROVAL OF MINUTES:
MOTION: Sen. Allen moved to approve the minutes of January 25, 2005.
The motion passed unanimously.
Sen. Stephenson assumed the Committee Chair.
1. S.B. 121 PROPERTY TAX EXEMPTION AMENDMENTS (Sen. C. Bramble)
Sen. Bramble presented the bill to the committee.
MOTION: Sen. Bramble moved to amend S. B. 121 as follows:
1. Page 1, Lines 18 through 24 :
18 . provides that, for property acquired after December 31, 2005, when
the
property ceases
19 to qualify for
{
a charitable
}
an
exemption
for property owned by a
nonprofit entity and used exclusively for religious, charitable, or educational
purposes
or a government exemption because of a
20 change in the ownership of the property, the new owner shall pay a proportional tax
21 based upon the period of time:
22 . beginning on the day that the new owner acquired the property; and
23 . ending on the last day of the calendar year during which the new owner acquired
24 the property;
. provides that, for property acquired after December 31, 2005, when the
property ceases to qualify for an exemption for property owned by a nonprofit
entity and used exclusively for religious, charitable, or educational purposes or a
government exemption because of a change in ownership of the property, the new
owner and previous owner of the property are required to report the acquisition of
the property to the county assessor within 30 days from the day that the new owner
acquired the property;
2. Page 2, Lines 48 through 50 :
48 (a) "
{
charitable
}
exclusive
exemption" means a property tax exemption
under Subsection (3)(d),
49 for property owned by a nonprofit entity that is used exclusively for religious, charitable, or
50 educational purposes;
3. Page 4, Lines 103 through 112 :
103 (4) Subject to Subsection (5), if property that is allowed
{
a charitable
}
an
exclusive
exemption or a
104 government exemption ceases to qualify for the exemption because of a change in the
105 ownership of the property
{
,
}
:
(a)
the new owner of the property shall pay a proportional tax based
106 upon the period of time:
107
{
(a)
}
(i)
beginning on the day that the new owner acquired the property;
and
108
{
(b)
}
(ii)
ending on the last day of the calendar year during which the new
owner acquired
109 the property
{
.
}
; and
(b) the new owner of the property and the person from whom the new owner acquires the property shall notify the county assessor, in writing, of the change in ownership of the property within 30 days from the day that the new owner acquires the property.
110 (5) Notwithstanding Subsection (4)
(a)
, the proportional tax described in
Subsection (4)
(a)
:
111 (a) is subject to any
{
charitable
}
exclusive
exemption or government
exemption that the property is
112 entitled to under the new ownership of the property; and
4. Page 7, Lines 201 through 206 :
201 (10) (a) For purposes of this Subsection (10), "
{
charitable
}
exclusive
exemption" is as defined in
202 Section 59-2-1101 .
203 (b) (i) For purposes of Subsection (1)(a), and except as provided in Subsections
204 (10)(b)(ii) and (iii), when a person acquires property on or after January 1 that qualifies for
{
a
205 charitable }
an exclusive
exemption, that person may apply for the
{
charitable
}
exclusive
exemption on or before the later
206 of:
5. Page 7, Line 210 through Page 8, Line 215 :
210 (ii) Notwithstanding Subsection (10)(b)(i), a person who acquires property on or after
211 January 1, 2004, and before January 1, 2005, that qualifies for
{
a charitable
}
an
exclusive
exemption, may
212 apply for the
{
charitable
}
exclusive
exemption for the 2004 calendar year on or
before September 30, 2005.
213 (iii) Notwithstanding Subsection (10)(b)(i), a person who acquires property on or after
214 January 1, 2005, and before January 1, 2006, that qualifies for
{
a charitable
}
an
exclusive
exemption, may
215 apply for the
{
charitable
}
exclusive
exemption for the 2005 calendar year on or
before the later of:
The motion passed with Sen. Allen and Sen. Hillyard absent for the vote.
Kris Poulson, Utah County Assessor and Lee Gardner. Salt Lake County Assessor
spoke in favor of the bill.
MOTION: Sen. Bramble moved to pass S.B. 121, as amended, out of committee with a favorable recommendation.
The motion passed unanimously.
Sen. Bramble assumed the Committee chair.
2. S.B. 139 MINIMUM WAGE PROVISIONS (Sen. H. Stephenson).
Sen. Stephenson presented the bill to the committee.
MOTION: Sen. Allen moved to amend S.B. 127 as follows:
1. Page 1, Line 42 strike "not"
The motion failed with Sen. Allen voting in favor..
Pamela Silberman, Utah Issues; Edwin Rutan, Attorney, Salt Lake City Corporation;
Kyle Wulle, PACE 8-593; Kent Anderson, CWA 7704; George Neckel, Utah Jobs for Justice; and Lorna Vogt, UPNet spoke in opposition.
Jim Olson, Utah Food Industry Association; Mayor Mont Evans, Utah Restaurant Association; Melva Sine, Utah Restaurant Association; and Greg Gruber, Restaurant Owner spoke in favor.
MOTION: Sen. Peterson moved to pass S.B. 139 out of committee with a favorable recommendation.
The motion passed with Sen. Allen voting against.
3. S.B. 53 LAND VALUE PROPERTY TAX STUDY (Sen. H. Stephenson)
Sen. Stephenson presented the bill to the committee.
Keith Prescott, Chairman, Utah Tax Review Commission, spoke to the bill.
MOTION: Sen. Bell moved to pass S.B. 53 out of committee with a favorable recommendation.
The motion passed unanimously with Sen. Allen absent for the vote.
4. S.B. 54 PROPERTY TAX CONFIDENTIALITY AMENDMENTS (Sen. H. Stephenson)
Sen. Stephenson presented the bill to the committee.
Mark Buchi, Attorney, and Mark Johnson, Utah State Tax Commission, spoke to the bill.
MOTION: Sen. Stephenson moved to pass S.B. 54 out of committee with a favorable recommendation.
The motion passed unanimously with Sen. Allen absent for the vote.
5. S.B. 127 TAX, FEE, OR CHARGE AMENDMENTS (Sen. L. Hillyard)
Sen. Hillyard presented the bill to the committee.
MOTION: Sen. Bell moved to amend S.B. 127 as follows:
1. Page 1, Line 22: After line 22 insert:
" . provides a credit for sales and use taxes relating to certain repossessions of a motor vehicle;"
2. Page 2, Line 49: After line 49 insert:
"ENACTS:
59-12-104.3, Utah Code Annotated 1953"
3. Page 54, Line 1665: After line 1665 insert:
"Section 5. Section 59-12-104.3 is enacted to read:
59-12-104.3. Credit for certain repossessions of a motor vehicle.
(1) Subject to Subsection (2), a seller of a motor vehicle may claim a credit for a tax under this chapter:
(a) that the seller collected; and
(b) on a motor vehicle that:
(i) has been repossessed; and
(ii) that the seller resells.
(2) The amount of the credit allowed by Subsection (1) is equal to the product of:
(a) the portion of the motor vehicle's purchase price that:
(i) was subject to a tax under this chapter; and
(ii) remains unpaid at the time of the repossession of the motor vehicle; and
(b) the tax rate imposed by Subsection 59-12-103 (2)(a):
(i) on the motor vehicle's purchase price; and
(ii) on the date the motor vehicle was purchased by the person that owns the motor vehicle at the time of the repossession. "
Renumber remaining sections accordingly.
The motion passed unanimously with Sen. Allen absent for the vote.
MOTION: Sen. Bell moved to pass S.B. 127 , as amended, out of committee with a favorable recommendation.
The motion passed unanimously.
MOTION: Sen. Hillyard moved to adjourn.
The motion passed unanimously.
Sen. Bramble adjourned the meeting at 9:55 a.m.
Minutes recorded by Jeanne Wride, Committee Secretary