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February 3, 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. 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
MEMBERS ABSENT: Rep. Rebecca Lockhart
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 2:05 p.m.
MOTION: Rep. Frank moved to approve the minutes of the February 1, 2006 meeting. The motion passed unanimously with Rep. Allen, Rep. Last, Rep. Moss, and Rep. Newbold absent for the vote.
H.B. 147 Revisions to Distribution of Sales and Use Tax Revenue (Rep. S. Wyatt)
MOTION: Rep. Snow moved to amend the bill as follows:
1. Page 1, Lines 16 through 19 :
16 . establishes a procedure for a county, and a
two-thirds
majority of the
municipalities within a
17
county, to agree to an alternate distribution formula for certain local option sales17
18 and use tax revenues within the incorporated and unincorporated areas of the
19 county;
2. Page 2, Lines 43 through 46 :
43 . establishes a procedure for a county, and a
two-thirds
majority of the
municipalities within a
44 county, to reinstate the local option sales and use tax revenue distribution formula
45 that applies to counties and municipalities that have not adopted an alternate
46 distribution formula under this bill; and
3. Page 9, Lines 271 through 273 :
271 (a) subject to Subsections (4) and (5), the county legislative body and a
two-
thirds
majority of the
272 municipalities that are, in whole or in part, within that county agree, in writing, to an alternate
273 distribution formula; and
4. Page 12, Lines 338 through 340 :
338 (a) subject to Subsection (11), the county legislative body and a
two-
thirds
majority of the
339 municipalities that are, in whole or in part, within that county, agree, in writing, to remove the
340 designation as an alternate disbursal area; and
Amendment 2
1. Page 1, Lines 16 through 19 :
16 . establishes a procedure for a county, and a majority of the municipalities within a
17 county, to agree to an alternate distribution formula for certain local option sales
18 and use tax revenues within the incorporated and unincorporated areas of the
19 county;
.
provides that the procedure described in the preceding paragraph does
not apply to a county of the first or second class;
2. Page 9, Line 267 through Page 10, Line 278 :
267 (3)
{
A
}
Except as provided in Subsection (4)(a), a
county shall be
designated as an alternate disbursal area by the commission on
268 the first day of the first calendar month after a 90-day period beginning on the day on which the
269 commission receives written notice from the county that an alternate distribution formula is
270 approved under Subsection (3)(b), if:
271 (a) subject to Subsections (4)
(b)
and (5), the county legislative body and a
majority of the
272 municipalities that are, in whole or in part, within that county agree, in writing, to an alternate
273 distribution formula; and
274 (b) in accordance with Subsection (8), after the agreement described in Subsection
275 (3)(a) is reached, the alternate distribution formula is approved by a majority vote of the legal
276 voters residing in the incorporated and unincorporated areas of the county.
277 (4)
(a) The commission may not designate a county as an alternate disbursal
area under this section if, on the day of the vote described in Subsection (3)(b), the
county is a county of the first or second class.
(b)
The legislative body of a municipality shall determine whether a municipality
278 agrees to an alternate distribution formula.
Amendment 3
1. Page 1, Lines 16 through 19 :
16 . establishes a procedure for a county, and a majority of the municipalities within a
17 county,
or, for a county with less than seven municipalities within the county, all of
the municipalities within the county,
to agree to an alternate distribution formula for
certain local option sales
18 and use tax revenues within the incorporated and unincorporated areas of the
19 county;
2. Page 2, Lines 43 through 46 :
43 . establishes a procedure for a county, and a majority of the municipalities within a
44 county,
or, for a county with less than seven municipalities within the county, all of
the municipalities within the county,
to reinstate the local option sales and use tax
revenue distribution formula
45 that applies to counties and municipalities that have not adopted an alternate
46 distribution formula under this bill; and
3. Page 9, Lines 267 through 273 :
267 (3) A county shall be designated as an alternate disbursal area by the commission on
268 the first day of the first calendar month after a 90-day period beginning on the day on which the
269 commission receives written notice from the county that an alternate distribution formula is
270 approved under Subsection (3)(b), if:
271 (a) subject to Subsections (4) and (5)
{
,
}
:
(i) for a county with seven or more municipalities that are, in whole
or in part, within the county,
the county legislative body and a majority of the
272 municipalities that are, in whole or in part, within that county agree, in writing, to an alternate
273 distribution formula
; or
(ii) for a county with less than seven municipalities that are, in whole or in part, within the county, the county legislative body and each municipality that is, in whole or in part, within that county agree, in writing, to an alternate distribution formula
; and
4. Page 11, Line 336 through Page 12, Line 340 :
336 (9) Subject to Subsection (10), the commission shall remove a county's designation as
337 an alternate disbursal area if:
338 (a) subject to Subsection (11)
{
,
}
:
(i) for a county with seven or more municipalities that are, in whole
or in part, within the county,
the county legislative body and a majority of the
339 municipalities that are, in whole or in part, within that county, agree, in writing, to remove the
340 designation as an alternate disbursal area
; or
(ii) for a county with less than seven municipalities that are, in whole or in part, within the county, the county legislative body and each municipality that is, in
whole or in part, within that county agree, in writing, to remove the designation as an alternate disbursal area
; and
A division of the motion was requested.
The motion to adopt amendment 1 passed unanimously with Rep. Allen, and Rep. Last, absent for the vote.
The motion to adopt amendment 2 failed with Rep. Romero voting in favor and Rep. Allen, and Rep. Last, absent for the vote.
The motion to adopt amendment 3 passed unanimously with Rep. Allen, and Rep. Last, absent for the vote.
Rep. Wyatt introduced the bill and explained it to the committee. The following individuals spoke in favor of the bill:
Karl Hendrickson, Utah Association of Counties
Larry Anhder, Nibley City Manager
Mike Jerman, Utah Taxpayers Association
Jack Green, Air Quality Task Force
The following individuals spoke in opposition to the bill:
Roger Tew, Utah League of Cities and Towns
Lincoln Schurtz, Utah League of Cities and Towns
MOTION: Rep. Hunsaker moved to transmit the amended bill with a favorable recommendation.
SUBSTITUTE
MOTION: Rep. Newbold moved to proceed to the next item on the agenda. The motion failed with Rep. Cosgrove, Rep. McGee, Rep. Moss, Rep. Newbold, and Rep. Romero voting in favor and Rep. Snow absent for the vote.
The original motion to transmit HB 147 with a favorable recommendation passed with Rep. Cosgrove, Rep. McGee, Rep. Moss, Rep. Newbold, and Rep. Romero voting in opposition and Rep. Snow absent for the vote.
H.B. 309 Municipal Energy Sales and Use Tax Amendments (Rep. G. Hughes)
MOTION: Rep. Romero moved to delete in title and body HB 309 and replace it with 1st Substitute HB 309. The motion passed unanimously with Rep. Newbold and Rep. Snow absent for the vote.
Sen. Killpack introduced the bill and explained it to the committee. The following individuals spoke in favor of the bill:
Roger Tew, Utah League of Cities and Towns
Lincoln Schurtz, Utah League of Cities and Towns
Morris Jackson, Questar
Mike Jerman, Utah Taxpayers Association
Leslie Reberg, Committee of consumer Services
Paul Barber, Utah Energy Users Association
Tom Bingham, Utah Manufacturers Association
MOTION: Rep. Frank moved to transmit the bill with a favorable recommendation. The motion passed unanimously with Rep. Hunsaker, Rep. McGee, and Rep. Snow absent for the vote.
H.B. 338 Property Tax Exemption for Business Personal Property (Rep. J. Dougall)
The bill was not considered at this meeting.
S.B. 36 School Districts - Limited Amendments to Truth in Taxation (Sen. M. Dmitrich) (Rep. G. Snow)
Sen. Dmitrich introduced the bill and explained it to the committee.
MOTION: Rep. Allen moved to transmit the bill with a favorable recommendation. The motion passed unanimously with Rep. Hunsaker and Rep. Snow absent for the vote.
S.B. 28 Sales and Use Tax - Exemption for Isolated or Occasional Sales (Sen. L. Hillyard) (Rep. W. Harper)
Rep. Harper introduced the bill and explained it to the committee.
MOTION: Rep. Allen moved to transmit the bill with a favorable recommendation. The motion passed unanimously with Rep. Hunsaker, Rep. Newbold, and Rep. Snow absent for the vote.
MOTION: Rep. Allen moved to adjourn. The motion passed unanimously with Rep. Hunsaker, Rep. Newbold, and Rep. Snow absent for the vote.
The Vice Chair adjourned the meeting at 3:26 p.m.
__________________________
Rep. Wayne A. Harper, Chair