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MINUTES OF THE

HOUSE REVENUE AND TAXATION

STANDING COMMITTEE

Room 445 - State Capitol, State Capitol Complex


                     February 14, 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. Christine Johnson
                Rep. Bradley G. Last                 
                Rep. Roz McGee
                 Rep. Carol Spackman Moss                           
                 Rep. Merlynn T. Newbold         
                 Rep. Carl Wimmer
                                 
MEMBERS ABSENT:     Rep. Gregory H. Hughes
                Rep. Gordon E. Snow
                 Rep. Aaron Tilton

STAFF:            Bryant Howe, Assistant Director
                Stewart Smith, Policy Analyst
                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 8:09 a.m.

MOTION:    Rep. Dougall moved to approve the minutes of the February 12, 2008 meeting. The motion passed unanimously with Rep. Moss and Rep. Wimmer absent for the vote.

H.B. 183    Sales and Use Tax Amendments (Rep. W. Harper)

Rep. Harper introduced the bill and explained it to the committee. Jim Olsen, Utah Food Industry Association, spoke in favor of the bill. The following individuals spoke to the bill:

    Bruce Jones            General Counsel, Utah Transit Authority
    Lincoln Shurtz        Utah League of Cities and Towns
    Michael Jensen        Salt Lake County Council, Wasatch Front Regional Council

During the discussion Rep. Dougall relinquished the chair to Rep. Frank.


MOTION:    Rep. Dougall moved to hold H.B. 183 in committee. The motion passed with Rep. Harper and Rep. Newbold voting in opposition and Rep. Moss and Rep. Wimmer absent for the vote.

H.B. 360    Individual Income Tax - Long-term Care Insurance Premiums (Rep. B. Last)

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

1.    Page 17, Lines 517 through 522 :    

             517          (a) "Eligible insured individual" means:
             518          (i) the claimant who is insured by long-term care insurance; or
             519          (ii) the spouse of the claimant described in Subsection (1)(a)(i) if:
             520          (A) the claimant files a single return jointly
  under this chapter       with the claimant's spouse        for the taxable year       ; and

             521          (B) the spouse is insured under the long-term care insurance described in Subsection
             522      (1)(a)(i).

2.    Page 18, Lines 535 through 548 :    

             535          (c) "Joint claimant" means:
             536          (i) a husband and wife who file a single
{   federal individual income tax   } return jointly        under this chapter       for

             537      the taxable year; or
             538          (ii) a surviving spouse, as defined in Section 2(a), Internal Revenue Code, who files a
             539      single
  federal       individual income tax return for the taxable year.

             540          (d) "Long-term care insurance" is as defined in Section 31A-1-301 .
             541          (e) "Premium" is as defined in Section 31A-1-301 .
             542          (f) "Single claimant" means:
             543          (i) a single individual who files a single
  federal       individual income tax return for the taxable

             544      year;
             545          (ii) a head of household as defined in Section 2(b), Internal Revenue Code, who files a
             546      single federal individual income tax return for the taxable year; or
             547          (iii) a married individual who does not file a single federal individual income tax return
             548      jointly with that married individual's spouse for the taxable year.



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

Rep. Last introduced the amended bill and explained it to the committee.

MOTION:    Rep. Newbold moved to transmit H.B. 360 as amended with a favorable recommendation. The motion passed unanimously with Rep. Wimmer absent for the vote.

S.B. 124    Sales and Use Tax - Definitions of Permanently Attached to Real Property and Tangible Personal Property (Sen. H. Stephenson) (Rep. W. Harper)

Sen. Stephenson assisted by Bruce Johnson, Utah Tax Commission, introduced the bill and explained it to the committee.

MOTION:    Rep. Dougall moved to transmit S.B. 124 with a favorable recommendation. The motion passed unanimously with Rep. Wimmer absent for the vote.

S.B. 135    Extending the Sales and Use Tax Exemption for Pollution Control Facilities (Sen. W. Niederhauser) (Rep. J. Dougall)

Rep. Dougall introduced the bill and Sen. Niederhauser explained it to the committee. Shelly Cordon-Teuscher, Tesoro, and Tom Bingham, Utah Manufacturers Association, spoke in favor of the bill.

MOTION:    Rep. Cosgrove moved to transmit S.B. 135 with a favorable recommendation. The motion passed unanimously.

H.B. 333    Property Tax Revisions (Rep. G. Froerer)

H.B. 333 was not heard in this meeting.

S.B. 96    Multi-channel Video or Audio Service Tax Act Amendments (Sen. W. Niederhauser) (Rep. K. Garn)

Sen. Niederhauser introduced the bill and explained it to the committee with a handout.

MOTION:    Rep. Newbold moved to transmit S.B. 96 with a favorable recommendation. The motion passed unanimously.

S.B. 64    Income Tax - Capital Gain Transactions (Sen. W. Niederhauser) (Rep. J. Dougall)

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



MOTION:    Rep. Wimmer moved to transmit S.B. 64 with a favorable recommendation. The motion passed with Rep. Johnson and Rep. McGee voting in opposition and Rep. Barrus and Rep. Moss absent for the vote.

S.B. 31    Income Tax Amendments (Sen. W. Niederhauser) (Rep. J. Dougall)

After distributing a handout, Sen. Niederhauser introduced the bill and explained it to the committee.

MOTION:    Rep. McGee moved to transmit S.B. 31 with a favorable recommendation. The motion passed unanimously with Rep. Barrus and Rep. Moss absent for the vote.

At the request of the chair, Bruce Johnson, Utah Tax Commission, reported to the committee the actions of the Commission in revising individual income tax withholding tables to accurately reflect recent changes in the individual income tax code. The new tables are now out on the web.

MOTION:    Rep. Newbold moved to adjourn. The motion passed unanimously with Rep. Barrus, Rep. McGee, and Rep. Moss absent for the vote.

Rep. Frank adjourned the meeting at 9:46 a.m.







                            __________________________
                            Rep. John Dougall, Chair