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MINUTES OF THE

HOUSE REVENUE AND TAXATION

STANDING COMMITTEE

Room W135 - West Office Building, State Capitol Complex


                     January 26, 2006

MEMBERS PRESENT:     Rep. Wayne A. Harper, Chair
                Rep. Glen A. Donnelson, Vice Chair                 
                Rep. Sheryl L. Allen
                Rep. Tim M. Cosgrove
                 Rep. Craig A. Frank                      
                 Rep. Fred R. Hunsaker
                Rep. Bradley G. Last
                Rep. Rebecca Lockhart
                Rep. Roz McGee
                Rep. Carol Spackman Moss                
                Rep. Joseph G. Murray                
                Rep. Merlynn T. Newbold
                Rep. Patrick L. Painter
                Rep. Ross I. Romero                        
                Rep. Gordon E. Snow
                        
STAFF:            Bryant Howe, Assistant Director
                Rosemary Young, Secretary
                    
Note:    A list of visitors and a copy of handouts are filed with the committee minutes.

Chair Harper called the meeting to order at 8:23 a.m.

MOTION:    Rep. Donnelson moved to approve the minutes of the January 24, 2006 meeting. The motion passed unanimously with Rep. Allen, Rep. McGee, Rep. Moss, Rep. Murray, Rep. Newbold, and Rep. Painter absent for the vote.

H.J.R. 1    Resolution Regarding Property Tax on Personal Property (Rep. J. Dougall)

MOTION:    Rep. Frank moved to delete in title and body HJR 1 and replace it with 1st Substitute HJR 1. The motion passed unanimously with Rep. Allen, Rep. McGee, Rep. Moss, Rep. Murray, Rep. Newbold, and Rep. Painter absent for the vote.

Rep. Dougall introduced the substitute resolution and explained it to the committee. Brent Gardner, Utah Association of Counties; Roger Tew, Utah League of Cities and Towns; Bruce Johnson, Commissioner Utah State Tax Commission; Steve Peterson, Utah School Boards Association; and Allen Tippetts, Salt Lake County Assessor spoke to the resolution. Robin Riggs, Vice President
Salt Lake Chamber of Commerce. and Lee Gardner, Salt Lake County Assessor spoke in favor of the resolution.



MOTION:    Rep. Frank moved to amend the resolution as follows:

    Page 1, Lines 18 - 19:            Delete lines 18-19

    Page 2, Line 34:            After "(1)" delete "(a)"

    Page 2, Line 37:            At the beginning of line 37 delete the brackets and                              restore "(a)" and delete "(i)"

    Page 2, Line 38:            After "by law" delete "and subject to Subsection (l)(b)"

    Page 2, Line 39:            At the beginning of line 39 delete the brackets and                              restore "(b)" and delete "(ii)"

    Page 2, Lines 40 - 42:            Delete lines 40 - 42

SUBSTITUTE
MOTION:    Rep. Allen moved to proceed to the next item on the agenda. The motion failed with Rep. Allen, Rep. Cosgrove, Rep. McGee, Rep. Moss, and Rep. Romero voting in favor of the motion.

The original motion to amend the resolution passed unanimously with Rep. Murray and Rep. Snow absent for the vote.

MOTION:    Rep. Lockhart moved to transmit the amended resolution with a favorable recommendation. The motion passed with Rep. Allen, Rep. Cosgrove, Rep. McGee, Rep. Moss and Rep. Romero voting in opposition to the resolution and Rep. Murray and Rep. Snow absent for the vote.

H.R. 3    Resolution Supporting Permanent Repeal of Federal Inheritance Tax (Rep. M. Noel)

Rep. Noel introduced the resolution and explained it to the committee. Sarah Wilhelm, Voices for Utah Children, spoke against the resolution.

MOTION:    Rep. Donnelson moved to transmit the resolution with a favorable recommendation. The motion passed with Rep. Cosgrove, Rep Moss, and Rep. Romero voting in opposition and Rep. Last, Rep. Lockhart, Rep. McGee, and Rep. Snow absent for the vote.

H.J.R. 6    Resolution Limiting Property Tax on Primary Residence (Rep. D. Hogue)

Rep. Hogue introduced the resolution and explained it to the committee. Commissioner Bruce Johnson, Utah State Tax Commission; Mike Jerman, Utah Taxpayers Association; and Lee Gardner, Salt Lake County Assessor, spoke to the resolution.



MOTION:    Rep. Donnelson moved to amend the resolution as follows:

Page 1, Line 14:    After "that" delete "a retired" and insert "an"

Page 2, Line 52:    After " Subsection (1) " delete " a retired " and insert " an "

SUBSTITUTE
MOTION:    
Rep. Frank moved to proceed to the next item on the agenda . The motion passed unanimously with Rep. Last, Rep. Lockhart, Rep. McGee, Rep. Newbold, Rep. Snow, and Rep. Romero absent for the vote.

H.B. 291    State Tax Commission Bonding and Licensing Amendments (Rep. W. Harper)


MOTION:    Rep. Donnelson moved to amend H.B. 291 as follows:

1.    Page 1, Lines 18 through 20 :    

             18          .    repeals language establishing the minimum amount of a bond for purposes of the
             19      aviation fuel tax;
  .     allows a bond to be combined with another bond into one bond under certain circumstances; and      

             20          .    repeals obsolete language; and

2.    Page 18, Lines 536 through 539 :    

             536          (f) Notwithstanding Subsection (5)(d) or (e), a bond required by this Subsection (5)
             537      may not:
             538          (i) be less than [$50,000]
{   $25,000   }        $10,000       ; or

             539          (ii) exceed $500,000.
  (g) A bond required by this section may be combined into one bond with any other bond required by this chapter.      


3.    Page 23, Lines 694 through 697 :    

             694          (f) Notwithstanding Subsection (5)(d) or (e), a bond required by this Subsection (5)
             695      may not:
             696          (i) be less than [$50,000]
{   $25,000   }        $10,000       ; or

             697          (ii) exceed $500,000.
  (g) A bond required by this section may be combined into one bond with any other bond required by this chapter.      


        

The motion passed unanimously with Rep. Hunsaker, Rep. Last, Rep. Lockhart, Rep. McGee, Rep. Newbold, Rep. Snow, and Rep. Romero absent for the vote.

MOTION:    Rep. Frank moved to transmit HB 291 as amended with a favorable recommendation. The motion passed unanimously with Rep. Hunsaker, Rep. Last, Rep. Lockhart, Rep. McGee, Rep. Newbold, Rep. Snow, and Rep. Romero absent for the vote.

H.B. 42    Renewable Energy Tax Credit (Rep. S. Allen)

MOTION:    Rep. Allen moved to delete in title and body HB 42 and replace it with 1st Substitute HB 42. The motion passed unanimously with Rep. Hunsaker, Rep. Last, Rep. Lockhart, Rep. McGee, Rep. Newbold, Rep. Snow, and Rep. Romero absent for the vote.

Rep. Allen introduced the bill and explained it to the committee assisted by Sarah Wright, Director of Utah Clean Energy. Elizabeth Mitchell, American Institute of Architects, spoke in favor of the bill.

MOTION:    Rep. Cosgrove moved to transmit 1st Substitute HB 42 with a favorable recommendation. The motion passed with Rep. Harper voting in opposition and Rep. Hunsaker, Rep. Last, Rep. Lockhart, Rep. McGee, Rep. Newbold, Rep. Snow, and Rep. Romero absent for the vote.

MOTION:    Rep. Murray moved to adjourn. The motion passed unanimously with Rep. Hunsaker, Rep. Last, Rep. Lockhart, Rep. McGee, Rep Newbold, Rep Snow, and Rep. Romero absent for the vote.

The Vice Chair adjourned the meeting at 9:52 a.m.


    





                            __________________________
                            Rep. Wayne A. Harper, Chair