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MINUTES OF THE

HOUSE REVENUE AND TAXATION

STANDING COMMITTEE

Room W135 - West Office Building, State Capitol Complex

                     January 30, 2007

MEMBERS PRESENT:     Rep. John Dougall, Chair
                Rep. Craig A. Frank, Vice Chair
                Rep. Roger Barrus                            
                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
                                 
MEMBERS ABSENT:      Rep. Ron Bigelow                 
                
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 8:02 a.m. In response to a request Commissioner Pam Hendrickson of the Utah State Tax Commission explained that there are approximately 50 different taxes collected of which 25 are sales based and most of the rest are income based. The commission collects about $6.5 billion annually in tax revenue.

MOTION:    Rep. Wimmer moved to approve the minutes of the January 22, 2007 meeting. The motion passed unanimously with Rep. Hughes, Rep. Moss, Rep. Snow, and Rep. Tilton absent for the vote.

H.B. 138    Uintah Basin Revitalization Fund (Rep. G. Snow)

H. B. 138 was not considered in this meeting.

H.B. 87    Repeal of the Severance Tax Exemption for Stripper Wells (Rep. S. Allen)

MOTION:    Rep. Snow moved to delete in title and body H.B. 87 and replace it with 1st Substitute H.B. 87. The motion passed unanimously with Rep. Cosgrove, Rep. Hughes, Rep. Johnson, Rep. Last, Rep. Newbold, and Rep. Tilton absent for the vote.

Rep. Allen and Rep. Snow introduced1st Sub H.B. 87 and explained to the committee that the bill combines H.B.87 and H.B. 138 into one bill. Lee Peacock, President Utah Petroleum Association,

and Ruland Gill, Questar Corporation, spoke in favor of the bill. During the discussion Rep. Dougall relinquished the chair to Rep. Frank.

MOTION:    Rep. Barrus moved to transmit 1st Sub H.B. 87 with a favorable recommendation. The motion passed unanimously with Rep. Moss and Rep. Dougall absent for the vote.

H.B. 297    Calculation of Credit for Certain Repossessions of a Motor Vehicle (Rep. W. Harper)

Rep. Harper introduced H.B. 297 and explained it to the committee with the assistance of Wayne Jones, Executive Director Independent Auto Dealers Association, who distributed a handout. Craig Bickmore, Executive Director Utah Auto Dealers Association, and Commissioner Pam Hendrickson, Utah State Tax Commission, spoke in favor of the bill.

MOTION:    Rep. McGee moved to transmit H.B. 297 with a favorable recommendation. The motion passed unanimously with Rep. Hughes, Rep. Moss, and Rep. Snow absent for the vote.

H.B. 111    Personal Property - Certified Tax Rate Amendments (Rep. J. Dougall)

MOTION:    
Rep. Dougall moved to delete in title and body H.B. 111 and replace it with 1st Substitute H.B. 111 and to amend as follows:

1.    Page 25, Lines 758 through 759 :    

             758          (b) For purposes of Subsection (1)(a)(iii), the total aggregate fair market value does not
             759      include items exempt under Subsections (1)(a)

  (i)       or      {   (1)(b)   }        (ii)       .


The motion passed unanimously with Rep. Hughes, Rep, Moss, and Rep. Snow absent for the vote.

Rep. Dougall introduced 1st Sub. H.B. 111 as amended and explained it to the committee. The following individuals spoke in favor of the bill:

    Stan Lockhart        IM/Flash Technologies
    Brent Gardner        Utah Association of Counties
    Kris Poulson        Utah County Assessor

These individuals spoke to the bill:
    Lee Gardner        Salt Lake County Assessor
    Allen Tippetts        Personal Property Division, Salt Lake County Assessor's Office    

MOTION:    Rep. Harper moved to transmit amended 1st Sub H.B. 111 with a favorable recommendation. The motion passed with Rep. Cosgrove, Rep. Johnson, and Rep. McGee voting in opposition and Rep. Hughes and Rep. Snow absent for the vote.


Rep. Frank relinquished the chair to Rep. Dougall.

H.B. 306    Municipal License Fees and Taxes Amendments (Rep. G. Hughes)

H. B. 306 was not considered in this meeting.

H.B. 293    Centrally Assessed Property (Rep. K. McIff)

MOTION:    Rep. Last moved to amend H.B. 293 as follows:

1.    Page 4, Lines 90 through 95 :    

             90          (1) (a) If the owner of any property assessed by the commission, or any county upon a
             91      showing of reasonable cause, objects to the assessment, the owner or the county may[, on or
             92      before June 1,]
{   apply to the commission for a hearing   }        , on or before the later of June 1 or a day       within 30 days of the date the notice of

             93      assessment is mailed by the commission pursuant to Section 59-2-201
{   .   }        , apply to the commission for a hearing.      

             94          (b) The commission shall allow the following to be a party at a hearing under this
             95      section:
The motion passed unanimously with Rep. Hughes and Rep. Snow absent for the vote.

Rep. McIff introduced the amended bill and explained it to the committee assisted by Brent Gardner, Utah Association of Counties, and Thomas Peters, an attorney.

MOTION:    Rep. Newbold moved to transmit amended H.B.293 with a favorable recommen- dation . The motion passed unanimously with Rep. Hughes and Rep. Snow absent for the vote.

MOTION:    Rep. Last moved to adjourn. The motion passed unanimously with Rep. Hughes, Rep. Snow and Rep. Tilton absent for the vote.

Rep. Dougall adjourned the meeting at 9:28 a.m.





                            __________________________
                            Rep. John Dougall, Chair