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MINUTES OF THE
SENATE REVENUE AND TAXATION STANDING COMMITTEE
JANUARY 28, 2005

Room W130, West Office Building, State Capitol Complex



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

        
            _______________________________
            Sen. Curtis Bramble, Committee Chair