Link to Zipped WordPerfect Minutes 10K bytes
January 22, 2007
MEMBERS PRESENT: Rep. John Dougall, Chair
Rep. Craig A. Frank, Vice Chair
Rep. Roger Barrus
Rep. Ron Bigelow
Rep. Tim M. Cosgrove
Rep. Wayne A. Harper
Rep. Gregory H. Hughes
Rep. Christine Johnson
Rep. Bradley G. Last
Rep. Roz McGee
Rep. Carol Spackman Moss
Rep. Merlynn T. Newbold
Rep. Gordon E. Snow
Rep. Aaron Tilton
Rep. Carl Wimmer
STAFF: Bryant Howe, Assistant Director
Rosemary Young, Secretary
Note: A list of visitors and a copy of handouts are filed with the committee minutes.
Rep. Dougall called the meeting to order at 8:03 am. Commissioner Bruce Johnson of the Utah State Tax Commission was asked to explain how payment of taxes is not voluntary even though the collection of some taxes may be dependent on self reporting as in the case of income taxes.
MOTION: Rep. Wimmer moved to approve the minutes of the January 16, 2007 meeting. The motion passed unanimously with Rep. Cosgrove, Rep. Harper, Rep. Hughes, Rep. Last, Rep. Moss, Rep. Newbold, and Rep. Tilton absent for the vote.
H.B. 98 County Option Sales and Use Tax for Highways, Fixed Guideways, or Systems of Public Transit Amendments (Rep. C. Frank)
Rep. Frank assisted by Steve White, Utah County Commissioner, introduced H.B. 98 and explained it to the committee. Darrell Cook of the Mountainland Association of Governments spoke in favor of the bill.
MOTION: Rep. Wimmer moved to transmit the bill with a favorable recommendation. The motion passed unanimously with Rep. Hughes, Rep. Last, Rep. Moss, and Rep. Tilton absent for the vote.
H.B. 226 Sales and Use Tax - Highways and Public Transportation Amendments (Rep. J. Dougall)
Rep. Dougall introduced H.B. 226 and explained it to the committee. Raylene Ireland representing Provo City spoke in favor of the bill. The following individuals spoke to the bill:
Bruce Jones, General Counsel, Utah Transit Authority
Larry Ellertson, Utah County Commissioner and member of the UTA Board
Steve White, Utah County Commissioner
MOTION: Rep. Harper moved to transmit the bill with a favorable recommendation.
SUBSTITUTE
MOTION: Rep. McGee moved to proceed to the next item on the agenda. The substitute motion failed with Rep. Barrus, Rep. Cosgrove, Rep. Johnson, Rep. McGee, Rep. Moss, and Rep. Snow voting in favor and Rep. Hughes and Rep. Tilton absent for the vote.
The original motion passed with Rep. Barrus, Rep. Cosgrove, Rep. Johnson, Rep. McGee, Rep. Moss, and Rep. Snow voting in opposition and Rep. Hughes and Rep. Tilton absent for the vote.
H.B. 282 Sales and Use Taxation of Food and Food Ingredients (Rep. M. Newbold)
Rep. Newbold introduced H.B. 282 and explained it to the committee. The following individuals spoke in favor of the bill:
Linda Hilton, Coalition of Religious Communities
Jim Olson, Retail Merchants Association and Utah Food Industry Association
Mike Jerman, Utah Taxpayers Association
Spoke to the bill:
Roger Tew, Utah League of Cities and Towns
Brent Gardner, Utah Association of Counties
Rod Marrelli, Executive Director, Utah State Tax Commission
Dave Gessell, Vice President of the Utah Hospital Association
Darrell Cook, Mountainland Association of Governments
MOTION: Rep. Dougall moved to transmit the bill with a favorable recommendation. The motion passed with Rep. Johnson, Rep. McGee, and Rep. Moss voting in opposition.
H.B. 259 Mechanics Liens on Certain New Development Housing (Rep. P. Painter)
Rep. Painter introduced H.B. 259 with a handout and explained it to the committee with the
assistance of Attorney Steven Johnson.
The motion passed with Rep. Cosgrove, Rep. Johnson, Rep. McGee, and Rep. Moss voting in
opposition.
MOTION: Rep. Harper moved to transmit the bill with a favorable recommendation. The
motion passed unanimously.
H.B. 123 Tax Revisions (Rep. J. Dougall)
MOTION: Rep. Cosgrove moved to amend the bill as follows:
1. Page
1, Lines 18 through 26
:
18
. enacts
19
rate for purposes of the Single Rate Individual Income Tax Act, including:
20
. requiring the apportionment of those tax credits for a nonresident
individual or
21
part-year resident individual;
22
. requiring the
Division of Finance
}
State Tax Commission
to
make transfers from the General Fund to
23
the Education Fund equal to the amount of those tax credits claimed;
24
. requiring the State Tax Commission to report to the Division of
Finance the
25
amount of those tax credits claimed; and
26
. granting rulemaking authority to the State Tax Commission;
}
2. Page
6, Line 182 through Page 7, Line 186
:
182
59-10-1206.1. Definitions -- Nonrefundable tax credits allowed on the basis of
183
filing status and the state sales and use tax rate --
Division of
Finance
}
Commission
to transfer from the
184
General Fund into the Education Fund an amount equal to the amount of tax credits
185
claimed
-- Commission to report to the Division of Finance the amount of tax
credits
186
claimed -- Commission rulemaking authority
}
.
3. Page
7, Lines 201 through 208
:
201
(2) Except as provided in Section
59-10-1206.9
and subject to Subsections (3) and
(4),
202
for taxable years beginning on or after January 1, 2007, a claimant:
203
(a) who has a single filing status may claim a
204
(i) $5,000; and
205
(ii) the percentage listed in Subsection
59-12-103
(2)(a)(i); or
206
(b) who has a joint filing status may claim a
207
(i) $10,000; and
208
(ii) the percentage listed in Subsection
59-12-103
(2)(a)(i).
4. Page
8, Lines 219 through 226
:
219
(5)
(a) Subject to Subsection (5)(b), the Division of Finance
}
The
commission
shall transfer at least
220
annually from the General Fund into the Education Fund an amount equal to the amount
of tax
221
credits claimed in accordance with this section.
222
(b) The commission shall report to the Division of Finance the amount of
tax credits
223
claimed in accordance with this section.
224
(6) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
Act, the
225
commission may make rules providing procedures for reporting to the Division of
Finance the
226
amount of tax credits claimed in accordance with this section.
}
The motion passed unanimously.
Rep. Dougall introduced amended H.B. 123 and explained it to the committee with a handout.
Arthur Sutherland from the Coalition of Religious Communities spoke against the bill. Mike
Jerman, Utah Taxpayers Association, and Bruce Johnson, Utah State Tax Commission, speaking
personally, spoke for the bill. The following individuals spoke to the bill:
Courtney White, Utah Education Association
Doug McDonald, Utah Issues (handout)
Steven H. Peterson, Utah School Boards Association and Utah School Superintendents
Association
Sarah Wilhelm, Voices for Utah Children
MOTION: Rep. Hughes moved to transmit the amended bill with a favorable recommendation.
MOTION: Rep. Hughes moved to adjourn. The motion passed unanimously.
Rep. Frank adjourned the meeting at 9:56 am.
__________________________
Rep. John Dougall, Chair