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MINUTES OF THE

HOUSE REVENUE AND TAXATION

STANDING COMMITTEE

Room W135 - West Office Building, State Capitol Complex


                     February 5, 2007

                     CORRECTED

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. Roz McGee
                 Rep. Carol Spackman Moss                           
                 Rep. Merlynn T. Newbold                         
                Rep. Gordon E. Snow                 
                                 
MEMBERS ABSENT:     Rep. Bradley G. Last
                 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 8:33 a.m. Commissioner Pam Hendrickson of the Utah State Tax Commission at the chair's request discussed the annual report which is a report of last year's tax administration and is also available on line. Rep. Dougall relinquished the chair to Rep. Frank.

MOTION:    Rep. Barrus moved to approve the minutes of the February 1, 2007 meeting. The motion passed unanimously with Rep. Bigelow, Rep. Cosgrove, Rep. Hughes, and Rep. Moss absent for the vote.

S.B. 96    Sales and Use Tax Exemption for Disposable Home Medical Equipment or Supplies (Sen. S. Killpack) (Rep. G. Hughes)

Sen. Killpack introduced the bill and explained it to the committee. Jim Olsen, Utah Retail Merchants Association and Utah Food Industry Association, and Pam Hendrickson, Utah State Tax Commission spoke in favor of the bill.


MOTION:    Rep. Newbold moved to transmit the bill with a favorable recommendation. The motion passed unanimously with Rep. Hughes absent for the vote.

Rep. Frank relinquished the chair to Rep. Dougall.

S.B. 22    Sales and Use Tax Exemptions for Certain Governmental Entities and Entities Within the State Systems of Public and Higher Education (Sen. H. Stephenson) (Rep. W. Harper)

Sen. Stephenson introduced the bill and explained it to the committee.

MOTION:    Rep. Harper moved to transmit the bill with a favorable recommendation. The motion passed unanimously with Rep. Hughes, Rep. McGee, Rep. Newbold, and Rep. Frank absent for the vote.

H.B. 36    Income Tax Additions and Subtractions for Higher Education Savings (Rep. F. Hunsaker)

MOTION:    Rep. Snow moved to delete in title and body H.B. 36 and replace it with 1st Substitute H. B. 36. The motion passed unanimously with Rep. Hughes and Rep. Newbold absent for the vote.

MOTION:    Rep. Snow moved to amend 1st Sub H.B. 36 as follows:

1.    Page 23, Lines 681 through 682 :    

             681          (ii) the resident or nonresident individual described in Section (2)(i)(i) does not deduct
             682      on a federal individual income
  tax       return; and


The motion passed unanimously with Rep. Hughes and Rep. Newbold absent for the vote.

Rep. Hunsaker introduced 1st Sub H.B. 36 and explained it to the committee assisted by Lynne Ward, Director, Utah Education Savings Plan.

MOTION:    Rep. Bigelow moved to transmit 1st Sub H.B. 36 as amended with a favorable recommendation. The motion passed unanimously with Rep. Hughes absent for the vote.

1st Sub. H.B. 122    Clean Air and Efficient Vehicle Tax Credit (Rep. R. McGee)

Rep. McGee assisted by Glade Sowards, Utah Division of Air Quality, and Chris Parker, Office of Legislative Research and General Counsel, introduced the bill and explained it to the committee. Frank Pignanelli, American Alliance of Automobile Manufacturers, and Pam Hendrickson, Utah

Tax Commission, spoke to the bill. Beverly Miller, Director of Utah Clean Cities, spoke for the bill.

MOTION:    Rep. Barrus moved to delete in title and body 1st Sub. H.B. 122 and replace it with 3rd Sub. H.B. 122.

SUBSTITUTE
MOTION:    
Rep. Frank moved to delete in title and body 1st Sub. H.B. 122 and replace it with 2nd Sub. H.B. 122. The motion failed with Rep. Harper, Rep. Newbold, Rep. Dougall, and Rep. Frank voting in favor, and Rep. Hughes absent for the vote.

The original motion to adopt 3rd Sub. H.B. 122 passed with Rep. Bigelow, Rep. Harper, Rep. Snow, and Rep. Dougall voting in opposition.

MOTION:    Rep. Barrus moved to transmit 3rd Sub. H.B.122 with a favorable recommendation.

SUBSTITUTE
MOTION:    
Rep. Frank moved to hold the bill in committee. The motion passed with Rep. Cosgrove, Rep. Johnson, Rep. McGee, Rep. Moss, and Rep. Dougall voting in opposition.

MOTION:    Rep. Snow moved to adjourn. The motion passed unanimously.

Rep. Dougall adjourned the meeting at 10:00 a.m.

    





                            __________________________
                            Rep. John Dougall, Chair