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SENATE REVENUE AND TAXATION STANDING COMMITTEE
JANUARY 25, 2006, 9:00 A.M.
Members Present: Sen. Curtis Bramble, Chair Sen. Gregory Bell
Sen. Mike Dmitrich
Sen. Brent Goodfellow
Sen. Lyle Hillyard
Sen. Darin G. Peterson
Sen. Howard A. Stephenson
Sen. John Valentine
Staff Present: Bryant Howe, Assistant Director, OLRGC
Karen Allred, Committee Secretary
Public Speakers Present: Rod Marrelli, Executive Dir., Utah State Tax Commission
Lynn Solarczyk, Utah State Tax Commission
Steve Barth, Utah Private Clubs Association
A list of visitors and a copy of handouts are filed with the committee minutes.
Chair Bramble called the meeting to order at 9:13 a.m.
Approval of Minutes
MOTION: Sen. Goodfellow moved to approve the minutes of January 20, 2006.
The motion passed unanimously with Pres. Valentine absent for the vote.
1. S.B. 139 Reportable Transactions Act (H. Stephenson)
Sen. Stephenson explained the bill.
Rod Marrelli, Executive Dir., Utah State Tax Commission, and Lynn Solarczyk, Utah StateTax Commission clarified the bill and answered questions from the committee.
The following amendments were distributed:
1. Page 4, Line 94 through Page 5, Line 139 :
94 (2) (a) A taxpayer described in Subsection (1) shall disclose a reportable transaction
to
95
the commission in a manner required by the commission by rule made in accordance with
Title
96
63, Chapter 46a, Utah Administrative Rulemaking Act.
97
(b) If a taxpayer described in Subsection (1) is required to file a disclosure statement
98
under 26 C.F.R. Sec. 1.6011-4, the taxpayer shall provide the commission a copy of that
99
disclosure statement in a manner required by the commission by rule made in accordance
with
100
Title 63, Chapter 46a, Utah Administrative Rulemaking Act.
101
(3) Except as provided in Subsection (4), a taxpayer shall disclose a
reportable
102
transaction to the commission in the manner required by the commission by rule in
accordance
103
with Title 63, Chapter 46a, Utah Administrative Rulemaking Act.
}
104
(4)
}
(3)
(a) For a listed transaction entered into on or after January 1,
2004, but on or before
105
December 31, 2006, a disclosure statement required by this section shall be attached to:
106
(i) (A) the taxpayer's income tax return for the taxable year beginning on or after
107
January 1, 2007 but beginning on or before December 31, 2007; and
108
(B) any amended income tax return that the taxpayer files for the taxable year
109
beginning on or after January 1, 2007 but beginning on or before December 31, 2007; and
110
(ii) subject to Subsection
(4)
}
(3)
(b):
111
(A) the taxpayer's income tax return for any taxable year after the taxable year
112
beginning on or after January 1, 2007 but beginning on or before December 31, 2007, for
113
which there is a reduction in income tax as a result of the listed transaction; and
114
(B) any amended income tax return for any taxable year after the taxable year
115
beginning on or after January 1, 2007 but beginning on or before December 31, 2007, for
116
which there is a reduction in income tax as a result of the listed transaction.
117
(b) For purposes of Subsection
(4)
}
(3)
(a)(ii), a reduction in income tax
as a result of a
118
listed transaction includes a loss, credit, or deduction if the loss, credit, or deduction
results
119
from a listed transaction that is carried forward or carried back.
120
(5)
}
(4)
For a reportable transaction entered into on or after January 1,
2004, a disclosure
121
122
after January 1, 2007, if the filing of the amended income tax return reflects a
determination by
123
the Internal Revenue Service of the federal income tax treatment of the reportable
transaction.
124
(6)
}
(5)
(a) For a reportable transaction entered into on or after January 1,
2007, a disclosure
125
statement required by this section shall be attached to:
126
(i) (A) the taxpayer's income tax return for the taxable year during which the
127
transaction was entered into; and
128
(B) any amended income tax return that the taxpayer files for the taxable year during
129
which the transaction was entered into; and
130
(ii) subject to Subsection
(6)
}
(5)
(b):
131
(A) the taxpayer's income tax return for any taxable year after the taxable year
during
132
which the transaction was entered into, for which there is a reduction in income tax as a
result
133
of the reportable transaction; and
134
(B) any amended income tax return for any taxable year after the taxable year during
135
which the transaction was entered into, for which there is a reduction in income tax as a
result
136
of the reportable transaction.
137
(b) For purposes of Subsection
(6)
}
(5)
(a)(ii), a reduction in income tax
as a result of a
138
reportable transaction includes a loss, credit, or deduction if the loss, credit, or deduction
139
results from a reportable transaction that is carried forward or carried back.
MOTION: Sen. Stephenson moved to adopt the amendments.
The motion passed unanimously.
MOTION: Sen. Stephenson moved to transmit S.B. 139, as amended, with a favorable
recommendation.
The motion passed unanimously.
2. S.B. 154 Sales and Use Tax Exemption for Certain Admissions to or Rights to Use the
Premises of a Private Club (M. Dmitrich)
Sen. Dmitrich explained the bill.
Steve Barth, Utah Private Clubs Association, clarified and spoke in support of the bill.
MOTION: Sen. Dmitrich moved to transmit S.B. 154 with a favorable recommendation.
The motion passed unanimously with Sen. Hillyard and Pres. Valentine absent for the vote.
3. H.B. 51 Sales and Use Taxation of Amusement Devices and Cleaning or Washing of
Tangible Personal Property (W. Harper)
Rep. Harper explained the bill.
MOTION: Sen. Dmitrich moved to transmit H.B. 51 with a favorable recommendation.
The motion passed unanimously with Sen. Hillyard and Pres. Valentine absent for the vote.
MOTION: Sen. Bell moved to adjourn.
The motion passed unanimously with Sen. Hillyard and Pres. Valentine absent for the vote
at 9:35 a.m.