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CORRECTED
MINUTES OF THE
SENATE REVENUE AND TAXATION STANDING COMMITTEE MEETING
WEDNESDAY, JANUARY 23, 2008
, 2:00 P.M.
ROOM W130, WEST OFFICE BUILDING, STATE CAPITOL COMPLEX



Members Present:    Sen. Wayne L. Niederhauser, Chair     Pres. John Valentine
    Sen. Curtis S. Bramble
    Sen. Mike Dmitrich     Sen. Brent Goodfellow
    Sen. Jon J. Greiner
    Sen. Howard A. Stephenson
    Sen. Michael G. Waddoups

Staff Present:    Bryant Howe, Assistant Director, Office of Legislative Research and General Counsel
    Rebecca Rockwell, Associate General Counsel
    Karen Allred, Committee Secretary
    
Public Speakers Present:    Bruce Johnson, Commissioner, Utah State Tax Commission
    Mark Buchi, Attorney, Holme, Roberts, and Owens Law Firm;      Member, Tax Review Commission
    Keith Prescott, Chairman, Utah Tax Review Commission
    Linda Hilton, Director, Coalition of Religious Communities
    Jerry Oldroyd, Attorney, Comcast
    Steve Proper, Comcast/UCTA
    Dave Gessell, Utah Hospital Association
    Tom Bingham, President, Utah Manufacturers Association
    Rick Spratt, Executive Director, Dept. of Environmental Quality     Paul Powell, CEO, Petroglyph Energy
    Mike Rich, Vice President, Petroglyph Energy
    Lee Peacock, Utah Petroleum Association

A list of visitors and a copy of handouts are filed with the Committee minutes.

Chair Niederhauser welcomed those in attendance and called the meeting to order at 8:34 a.m.

1. S.B. 124 Sales and Use Tax - Definitions of Permanently Attached to Real Property      and Tangible Personal Property (H. Stephenson)     
    
Sen. Stephenson explained the bill.

    Mark Buchi, attorney, clarified the bill.



    Bruce Johnson, commissioner, Utah Tax Commission, answered questions from the     Committee.    

    
MOTION: Sen. Stephenson moved to pass S.B. 124 out of Committee with a favorable     recommendation.

    The motion passed unanimously.

2. S.B. 128 Amendments to the Veteran's Property Tax Exemption (B. Goodfellow)

    Sen. Goodfellow explained the bill.

     MOTION: Sen. Bramble moved to pass S.B. 128 out of Committee with a favorable     recommendation.

    
The motion passed unanimously.

    
MOTION: Sen. Bramble moved to place S.B. 128 on the Consent Calendar.

    The motion passed unanimously.

3.     S.B. 31 Income Tax Amendments (W. Niederhauser)

    Sen. Niederhauser introduced the bill and the following amendments were distributed:


1.    Page 1, Lines 26 through 27 :    

             26              .    addressing provisions relating to the determination and reporting of income tax
             27      liability and information;
  . addresses the apportionment of business income for purposes of the individual income tax;      


2.    Page 50, Lines 1529 through 1538 :    

             1529          59-10-121. Proration when two returns required.
             1530          
{   [   }      {   Where two returns are required to be filed as provided in   }        If an individual is required to file two returns for a taxable year under       Section 59-10-120 :

             1531          (1) personal exemptions and the standard deduction as used on the federal
  individual income tax       return shall


             1532
     be prorated between the two returns, under rules prescribed by the commission
  in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act       , to reflect the

             1533      proportions of the taxable year during which the individual was a resident and a nonresident;
             1534      and
             1535          (2)
{   ]   }      {   If, for purposes of Section 59-10-120 , an individual is required to file two returns

             1536      for a taxable year,  
}
the total amount of the taxes due [thereon shall] on the two returns may not
             1537      be less than the total amount of the taxes that would be due if the total of the taxable incomes
             1538      reported on the two returns [were includable] had been included in one return.

3.    Page 74, Lines 2265 through 2276 :    

             2265          (2) An estate or trust may not carry forward or carry back a tax credit under this
             2266      section.
    
  (3) The tax credit allowed by Subsection (1) shall be reduced by $.013 for each dollar by which an estate's or trust's state taxable income exceeds $12,000.      

             2267          
{   (3)   }        (4)       In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act:

             2268          (a) for purposes of Subsection (1)(a)(iv), the commission may make rules for
             2269      determining what constitutes an attorney, accountant, or return preparer fee if that attorney,
             2270      accountant, or return preparer fee is consistent with an attorney, accountant, or return preparer
             2271      fee that may be deducted on a federal income tax return for estates and trusts; or
             2272          (b) for purposes of Subsection (1)(a)(v), the commission may make rules for
             2273      determining what constitutes an other deduction or miscellaneous itemized deduction if that
             2274      other deduction or miscellaneous itemized deduction is consistent with an other deduction or
             2275      miscellaneous itemized deduction that may be deducted on a federal income tax return for
             2276      estates and trusts.
    
Rebecca Rockwell, Associate General Counsel, explained the amendments.



     MOTION: Sen. Niederhauser moved to adopt the amendments.

    The motion passed unanimously with Sens. Bramble and Goodfellow absent for the vote.

    Keith Prescott, Utah Tax Review Commission, spoke in support of the bill.

    Linda Hilton, Director, Coalition of Religious Communities, spoke to the bill.

     MOTION: Sen. Niederhauser moved to pass S.B. 31 out of Committee with a favorable     recommendation.

    The motion passed unanimously with Sens. Bramble and Goodfellow absent for the vote.

4.     S.B. 96 Multi-channel Video or Audio Service Tax Act Amendments (W. Niederhauser)
    
    
Sen. Niederhauser introduced the bill and a handout was distributed.

    Jerry Oldroyd, and Steve Proper, Comcast, spoke in support of the bill.

     MOTION: Sen. Dmitrich moved to pass S.B. 96 out of Committee with a favorable     recommendation.

    The motion passed unanimously with Sens. Bramble, Goodfellow and Valentine absent for the     vote.    

5. S.B. 99 Amendments to Sales and Use Tax Exemption for Prosthetic Devices
    (W. Niederhauser)

    Sen. Niederhauser explained the bill and the following amendments were distributed:


1.    Page 1, Lines 12 through 16 :    

             12      Highlighted Provisions:
             13          This bill:
             14          .    modifies the
{   prescription requirement for purposes of the   }        eligibility requirements for the       sales and use tax

             15      exemption for prosthetic devices; and
             16          .    makes technical changes.

2.    Page 15, Lines 458 through 461 :    

             458          (55) sales of a prosthetic device:


             459          (a) for use on or in a human; and
             460          (b)
  (i)       for which a prescription is [issued] required; [and]        or      

             461          [(c) to a person that presents a prescription for the prosthetic device;]
      (ii) if the prosthetic device is purchased by a hospital or other medical facility;      

    
     MOTION: Sen. Niederhauser moved to adopt the amendments.

    The motion passed unanimously with Sens. Bramble, Goodfellow, and Valentine absent for     the vote.

    Bruce Johnson, Utah State Tax Commission, further clarified the bill.

    Dave Gessell, Utah Hospital Association, spoke in support of the bill.

     MOTION: Sen. Niederhauser moved to pass S.B. 99 out of Committee with a favorable

    The motion passed unanimously with Sens. Bramble, Goodfellow and Valentine absent for the     vote.

6.    S.B. 135 Extending the Sales and Use Tax Exemption for Pollution Control Facilities
    (W. Niederhauser)

    
Sen. Niederhauser explained the bill.

    Tom Bingham, President, Utah Manufacturers Association, answered questions from the     Committee and spoke in support of the bill.

    Rick Spratt, Executive Director, Department of Environmental Quality, further clarified and     spoke in support of the bill.

     MOTION: Sen. Niederhauser moved to pass S.B. 135 out of Committee with a favorable     recommendation .

    The motion passed unanimously with Sens. Bramble, Goodfellow and Valentine absent for the     vote.


7.    S.B. 137 Mineral Production Tax Withholding Amendments (W. Niederhauser)

    Sen. Niederhauser explained the bill.



    Paul Powell, CEO, Petroglyph Energy, Mike Rich, Vice President, Petroglyph Energy and
    Lee Peacock, Utah Petroleum Association spoke in support of the bill.

     MOTION: Sen. Niederhauser moved to pass S.B. 137 out of Committee with a favorable     recommendation.

    The motion passed unanimously with Sens. Bramble, Dmitrich, Goodfellow and Valentine     absent for the vote.

     MOTION: Sen. Greiner moved to adjourn.

    The motion passed unanimously at 9:55 a.m. with Sens. Bramble, Dmitrich Goodfellow and     Valentine absent for the vote.


        
_            _____________________________________
            Sen. Wayne L. Niederhauser, Committee Chair