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MINUTES OF THE

HOUSE REVENUE AND TAXATION

STANDING COMMITTEE

Room W135 - West Office Building, State Capitol Complex


                     January 22, 2008


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. Aaron Tilton
                Rep. Carl Wimmer
                                 
MEMBERS ABSENT:     Rep. Gordon E. Snow                 
                

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 9:13 a.m. and invited the committee members and staff to introduce themselves.

H.B. 52    Research Activities Tax Credits Amendments (Rep. J. Dougall)

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

1.    Page 2, Lines 37 through 45 :    

             37          (1) (a) A taxpayer meeting the requirements of this section may claim the following
             38      nonrefundable tax credits:
             39          (i) a research tax credit of
{   7%   }        5%       of the taxpayer's qualified research expenses for the

             40      current taxable year that exceed the base amount provided for under Subsection (4);
             41          (ii) a tax credit for [payments] a payment to a qualified [organizations] organization

for
             42      basic research as provided in Section 41(e), Internal Revenue Code, of

{   7%   }        5%       for the current

             43      taxable year that exceed the base amount provided for under Subsection (4); and
             44          (iii) a tax credit equal to
  :

    (A) for the taxable year beginning on or after January 1, 2008, but beginning on or before December 31, 2008,  
5% of the taxpayer's qualified research expenses for the

             45      current taxable year
{   .   }        ;

    (B) for the taxable year beginning on or after January 1, 2009, but beginning on or before December 31, 2009, 6.3% of the taxpayer's qualified research expenses for the current taxable year; or
    (C) for taxable years beginning on or after January 1, 2010, 9.2% of the taxpayer's qualified research expenses for the current taxable year.  


2.    Page 8, Lines 223 through 232 :    

             223          (1) (a) A claimant, estate, or trust meeting the requirements of this section may claim
             224      the following nonrefundable tax credits:
             225          (i) a research tax credit of
{   7%   }        5%       of the claimant's, estate's, or trust's qualified research

             226      expenses for the current taxable year that exceed the base amount provided for under
             227      Subsection (3);
             228          (ii) a tax credit for [payments] a payment to a qualified [organizations] organization for
             229      basic research as provided in Section 41(e), Internal Revenue Code of
{   7%   }        5%       for the current

             230      taxable year that exceed the base amount provided for under Subsection (3); and
             231          (iii) a tax credit equal to
  :

    (A) for the taxable year beginning on or after January 1, 2008, but beginning on or before December 31, 2008,  
5% of the claimant's, estate's, or trust's qualified research

             232      expenses for the current taxable year
{   .   }        ;      

      (B) for the taxable year beginning on or after January 1, 2009, but beginning on or before December 31, 2009, 6.3% of the claimant's, estate's, or trust's qualified research expenses for the current taxable year; or

    (C) for taxable years beginning on or after January 1, 2010, 9.2% of the

claimant's, estate's, or trust's qualified research expenses for the current taxable year.  


    
The motion to amend passed unanimously with Rep. Moss absent for the vote.

Rep. Dougall introduced HB 52 as amended and explained it to the committee. Royce Van Tassell of the Utah Taxpayers Association spoke in favor of the bill.

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

H.B. 77    Personal Property Tax Amendments (Rep. J. Dougall)

MOTION:    Rep. Dougall moved to delete in title and body H.B. 77 and replace it with 1st Substitute H.B. 77 and to amend as follows:

    1.    Page 10, Line 274:        Delete $5,000 and insert $1,000

    2.    Page 34, Line 1027:        Delete $5,000 and insert $1,000

The motion passed unanimously.

Rep. Dougall introduced 1st Sub H.B. 77 as amended and explained it to the committee. Kris Poulson, Utah County Assessor, and Candace Daly, National Federation of Independent Business, spoke in favor of the bill. Pam Hendrickson, Utah Tax Commission, spoke to the bill.

MOTION:    Rep. Last moved to transmit the bill with a favorable recommendation. The motion passed unanimously.

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

Rep. Frank adjourned the meeting at 9:47 am.






                            __________________________
                            Rep. John Dougall, Chair