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MINUTES OF THE

HOUSE REVENUE AND TAXATION

STANDING COMMITTEE

Room W135 - West Office Building, State Capitol Complex


                     February 15, 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. Carl Wimmer
                                 
MEMBERS ABSENT:      Rep. Ron Bigelow
                 Rep. Aaron Tilton
                

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. Frank called the meeting to order at 8:04 a.m. Commissioner Pam Hendrickson of the Utah State Tax Commission at the request of the chair gave the following statistics as an indication of the annual work load of the commission: 2 million vehicles registered, 280,000,000 tax returns processed, 500,000 phone calls answered.

MOTION:    Rep. Dougall moved to approve the minutes of the February 9 and 13, 2007 meetings. The motion passed unanimously with Rep. Cosgrove, Rep. Last, Rep. McGee, Rep. Moss, and Rep. Snow absent for the vote.

H.B. 372    Local District Amendments (Rep. R. Lockhart)

Rep. Lockhart introduced the bill and explained it to the committee. Raylene Ireland representing Provo City spoke in favor of the bill.

MOTION:    Rep. Dougall moved to delete in title and body H.B. 372 and replace it with 1st Substitute H.B. 372. The motion passed unanimously with Rep. Cosgrove, Rep. Last, Rep. McGee, Rep. Moss, and Rep. Snow absent for the vote.




MOTION:    
Rep. Dougall moved to transmit 1st Sub. H.B. 372 with a favorable recommendation. The motion passed unanimously with Rep. Cosgrove, Rep. Hughes, Rep. McGee, Rep. Moss, and Rep. Snow absent for the vote.

S.B. 33    Special Group License Plate - Gold Star Family (Sen. C. Walker) (Rep. M. Newbold)

MOTION:    Rep. Dougall moved to transmit S.B. 33 with a favorable recommendation. The motion passed unanimously with Rep. Cosgrove, Rep. Hughes, Rep. McGee, Rep. Moss, and Rep. Snow absent for the vote.

MOTION:    Rep. Newbold moved that S.B. 33 be placed on the consent calendar. The motion passed unanimously with Rep. Cosgrove, Rep. Hughes, Rep. McGee, Rep. Moss, and Rep. Snow absent for the vote.

S.B. 5    Tax Penalty Amendments (Sen. H. Stephenson) (Rep. W. Harper)

MOTION:    Rep. Harper moved to transmit S.B. 5 with a favorable recommendation. The motion passed unanimously with Rep. Cosgrove, Rep. McGee, Rep. Moss, and Rep. Snow absent for the vote.

MOTION:    Rep. Harper moved that S.B. 5 be placed on the consent calendar. The motion passed unanimously with Rep. McGee, Rep. Moss, and Rep. Snow absent for the vote.

S.B. 142    Sales and Use Tax Exemptions and Refund for Certain Business Inputs (Sen. H. Stephenson) (Rep. W. Harper)

MOTION:    Rep. Harper moved to delete in title and body S.B. 142 and replace it with 1st Substitute S.B. 142. The motion passed unanimously with Rep. McGee, Rep. Moss, and Rep. Snow absent for the vote.

MOTION:    Rep. Dougall moved to transmit 1st Sub. S.B. 142 with a favorable recommendation. The motion passed unanimously with Rep. McGee and Rep. Moss absent for the vote.

H.B. 383    Amendments to Transportation Funding Provisions (Rep. R. Lockhart)

Rep. Lockhart assisted by Lincoln Shurtz, Utah League of Cities and Towns, introduced the bill and explained it to the committee with a handout. Brian Bremner, Garfield County Engineer; John Njord, Utah Department of Transportation; and Brent Gardner, Utah Association of Counties, spoke in favor of the bill.


MOTION:    
Rep. Dougall moved to amend H.B. 383 as follows:

    1.    Page 17, Line 499:            After "the" insert "2007"

The motion passed unanimously with Rep. McGee and Rep. Moss absent for the vote.

MOTION:    Rep. Wimmer moved to transmit H.B. 383 as amended with a favorable recommendation. The motion passed unanimously with Rep. Harper absent for the vote.

1st Sub. S.B. 13    Tax Credits for Alternate Power Generation (Sen. H. Stephenson) (Rep. M. Noel)

Sen. Stephenson assisted by Des Barker, Interwest Energy Alliance, introduced the bill, distributed a handout, and explained the bill to the committee. The following individuals spoke in favor of the bill:

    Todd Bingham        Utah Farm Bureau
    Shelly Cordon-Teuscher    UPC Wind
    Elizabeth Mitchell        American Institute of Architects
    Orrin Farnsworth        Utah Solar Association
    Lowe Rudd            Citizen

MOTION:    Rep. Dougall moved to hold 1st Sub. S.B. 13 in committee. The motion passed unanimously.    

S.J.R. 2    Resolution Regarding Permanent State Trust Fund (Sen. L. Hillyard) (Rep. W. Harper)

MOTION:    Rep. Dougall moved to transmit S.J.R. 2 with a favorable recommendation. The motion passed unanimously with Rep. Johnson absent for the vote.

2nd Sub. S.B. 18    Use of Severance Tax Revenues (Sen. L. Hillyard) (Rep. W. Harper)

MOTION:    Rep. Harper moved to transmit 1st Sub S.B. 18 with a favorable recommendation.

SUBSTITUTE
MOTION:    
Rep. Hughes moved to amend the bill as follows

1.    Page 4, Lines 109 through 112 :    

             109          (2) "Mining base amount" means:
             110          (a)
{  $9,000,000   }       $5,000,000       for:

             111          (i) fiscal year 2007-08; or


             112          (ii) fiscal year 2008-09; and

2.    Page 4, Lines 115 through 118 :    

             115          (3) "Oil and gas base amount" means:
             116          (a)
{  $41,000,000   }       $20,000,000       for:

             117          (i) fiscal year 2007-08; or
             118          (ii) fiscal year 2008-09; and

The motion passed with Rep. Johnson and Rep. McGee voting in opposition.

MOTION:    Rep. Harper moved to transmit 1st Sub. S.B. 18 as amended with a favorable recommendation. The motion passed with Rep. Johnson and Rep. McGee voting in opposition.

H.B. 78    Property Tax Deferral - Senior Citizens (Rep. G. Froerer)

MOTION:    Rep. Dougall moved to delete in title and body H.B. 78 and replace it with 1st Substitute H.B. 78. The motion passed unanimously.

Rep. Froerer assisted by Angie Oaks, Associate General Counsel Office of Legislative Research, introduced the bill and explained it to the committee. Larry Richardson, Salt Lake County Treasurer, spoke to the bill.

MOTION:    Rep. McGee moved to amend the bill as follows:

1.    Page 4, Line 96 through Line 115 :    

             96          (1) For purposes of this section:
             97          (a) "Claimant" means:
             98          (i) an owner of qualifying residential property:
             99          (A)
{   regardless of income   }        whose total household income as defined in Section 59-2-1202 is less than 300% of the maximum household income certified to a homeowner's credit under Subsection 59-2-1208(1)       ; and

             100          (B) who:
             101          (I) files an application in accordance with Section 59-2-1109 ;
             102          (II) is 70 years of age or older on or before the date on which an application for deferral
             103      described in Subsection (1)(a)(i)(B)(I) is filed;
             104          (III) owes a property tax on the qualifying residential property; and
             105          (IV) resides for not less than ten months of each year in the qualifying residential
             106      property;


             107          (ii) a grantor of a trust:
             108          (A)
{   regardless of income   }        whose total household income as defined in Section 59-2-1202 is less than 300% of the maximum household income certified to a homeowner's credit under Subsection 59-2-1208(1)       ; and

             109          (B) holding title to qualifying residential property:
             110          (I) who files an application in accordance with Section 59-2-1109 ;
             111          (II) who is 70 years of age or older on or before the date on which an application for
             112      deferral described in Subsection (1)(a)(ii)(B)(I) is filed;
             113          (III) if a property tax is owed on the qualifying residential property; and
             114          (IV) who resides for not less than ten months of each year in the qualifying residential
             115      property; or


2.    Page 4, Line 116 through Page 5, Line 125 :    

             116          (iii) the unmarried surviving spouse of an owner described in Subsection (1)(a)(i) or a
             117      grantor described in Subsection (1)(a)(ii) of qualifying residential property if:
             118          (A) the unmarried surviving spouse, regardless of age, files an application in
             119      accordance with Section 59-2-1109 ;
             120          (B) a property tax is owed on the qualifying residential property;
             121          (C)
  the un married surviving spouse's total household income as defined in Section 59-2-1202 is less than 300% of the maximum household income certified to a homeowner's credit under Subsection 59-2-1208(1);

    (D)  
the unmarried surviving spouse resides for not less than ten months of each year in

             122      the qualifying residential property; and
             123          
{   (D)   }        (E)       the deceased spouse previously obtained a deferral:

             124          (I) in accordance with this section; and
             125          (II) for the qualifying residential property described in (1)(a)(iii)(B).

SUBSTITUTE
MOTION:    
Rep. Dougall moved to amend 1st Sub H.B. 78 as follows:

1.    Page 4, Line 96 through Line 115 :    

             96          (1) For purposes of this section:
             97          (a) "Claimant" means:


             98          (i) an owner of qualifying residential property:
             99          (A)
{   regardless of income   }        whose total household income as defined in Section 59-2-1202 is less than 150% of the maximum household income certified to a homeowner's credit under Subsection 59-2-1208(1)       ; and

             100          (B) who:
             101          (I) files an application in accordance with Section 59-2-1109 ;
             102          (II) is 70 years of age or older on or before the date on which an application for deferral
             103      described in Subsection (1)(a)(i)(B)(I) is filed;
             104          (III) owes a property tax on the qualifying residential property; and
             105          (IV) resides for not less than ten months of each year in the qualifying residential
             106      property;
             107          (ii) a grantor of a trust:
             108          (A)
{   regardless of income   }        whose total household income as defined in Section 59-2-1202 is less than 150% of the maximum household income certified to a homeowner's credit under Subsection 59-2-1208(1)       ; and

             109          (B) holding title to qualifying residential property:
             110          (I) who files an application in accordance with Section 59-2-1109 ;
             111          (II) who is 70 years of age or older on or before the date on which an application for
             112      deferral described in Subsection (1)(a)(ii)(B)(I) is filed;
             113          (III) if a property tax is owed on the qualifying residential property; and
             114          (IV) who resides for not less than ten months of each year in the qualifying residential
             115      property; or


2.    Page 4, Line 116 through Page 5, Line 125 :    

             116          (iii) the unmarried surviving spouse of an owner described in Subsection (1)(a)(i) or a
             117      grantor described in Subsection (1)(a)(ii) of qualifying residential property if:
             118          (A) the unmarried surviving spouse, regardless of age, files an application in
             119      accordance with Section 59-2-1109 ;
             120          (B) a property tax is owed on the qualifying residential property;
             121          (C)
  the un married surviving spouse's total household income as defined in Section 59-2-1202 is less than 150% of the maximum household income certified to a homeowner's credit under Subsection 59-2-1208(1);


    (D)  
    
the unmarried surviving spouse resides for not less than ten months of each year in

             122      the qualifying residential property; and
             123          
{   (D)   }        (E)       the deceased spouse previously obtained a deferral:

             124          (I) in accordance with this section; and
             125          (II) for the qualifying residential property described in (1)(a)(iii)(B).

The substitute motion failed with Rep. Barrus, Rep. Dougall, Rep. Frank, Rep. Newbold, Rep. Snow, and Rep. Wimmer voting in favor.

The vote on the original motion to amend passed with Rep. Dougall voting in opposition.

MOTION:    Rep. Harper moved to transmit 1st Sub. H.B. 78 as amended with a favorable recommendation. The motion passed with Rep. Barrus, Rep. Dougall, Rep. Frank, Rep. Last, and Rep. Newbold voting in opposition and Rep. Snow absent for the vote.

H.B. 166    Transportation Revisions (Rep. W. Harper)

H.B. 166 was not considered in this meeting.

H.B. 161    Corporate Franchise and Income Tax Credits Relating to Biodiesel or Syngas Production (Rep. M. Noel)

H.B. 161 was not considered in this meeting.

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

Rep. Frank adjourned the meeting at 10:02 a.m.






                            __________________________
                            Rep. John Dougall, Chair