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MINUTES OF THE

HOUSE REVENUE AND TAXATION

STANDING COMMITTEE

Room 445 - State Capitol, State Capitol Complex


                     February 2, 2009

MEMBERS PRESENT:     Rep. Todd Kiser, Chair
                Rep. Gage Froerer, Vice Chair
                Rep. Sheryl Allen                
                Rep. Tim M. Cosgrove
                 Rep. John Dougall                      
                 Rep. Susan Duckworth
                Rep. Julie Fisher
                Rep. Wayne Harper                 
                Rep. Greg Hughes                 
                Rep. Christine Johnson
                Rep. Carol Spackman Moss                          
                 Rep. Merlynn T. Newbold                         
                Rep. Stephen Sandstrom
                Rep. Jennifer Seelig
                Rep. Evan Vickers
                                 
MEMBERS ABSENT:     Rep. Eric Hutchings             

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. Kiser called the meeting to order at 8:09 a.m.

MOTION:    Rep. Fisher moved to approve the minutes of the January 29, 2008 meeting. The motion passed unanimously with Rep. Dougall, Rep. Moss and Rep. Sandstrom absent for the vote.

H.B. 35    Nonrefundable Higher Education Tuition Credit (Rep. J. Dougall)

MOTION:    Rep. Dougall moved to substitute H.B. 35 Nonrefundable Higher Education Tuition Credit with 1st Substitute H.B. 35 Higher Education Tax Credit and Contribution. The motion passed unanimously with Rep. Allen, Rep. Duckworth, Rep. Hughes, Rep. Johnson, Rep. Moss, Rep. Sandstrom and Rep. Seelig absent for the vote.

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

1.    Page 10, Lines 284 through 289 :    

             284          (ii) If the taxpayer does not sign and return the account agreement by the date

specified
             285      by the Utah Educational Savings Plan Trust

{   ;

             286          (A)  
}
  ,       the Utah Educational Savings Plan Trust shall return the contribution to the

             287     
{   commission   }        taxpayer       without any interest or earnings      {   ; and   }        .      

             288          
{   (B) the commission shall remit the taxpayer's individual income tax refund to the

             289      taxpayer.  
}


2.    Page 10, Lines 290 through 296 :    

             290          (4) For the purpose of determining interest on an overpayment or refund under Section
             291      59-1-402
{   :

             292          (a)  
}
  ,       no interest accrues after the commission sends the contribution to the Utah

             293      Educational Savings Plan Trust
{   ; and   }        .      

             294          
{   (b) if the Utah Educational Savings Plan Trust returns a contribution to the commission

             295      pursuant to Subsection (3)(c)(ii)(A), the return of the contribution shall be considered the filing
             296      of a return under Subsection 59-1-402 (4)(a).  
}


The motion passed unanimously with Rep. Duckworth, Rep. Hughes, Rep. Johnson, Rep. Moss, Rep. Sandstrom and Rep. Seelig absent for the vote.

Rep. Dougall assisted by Lynne Ward, Utah Educational Savings Plan Program Manager, introduced the bill and explained it to the committee. Cecelia Foxley, United Way, and Dave Buhler, Associate Commissioner for Public Affairs, Utah System of Higher Education, spoke in favor of the bill. Steve Peterson, Utah School Boards Association, and Royce Van Tassell, Utah Taxpayers Association, spoke against the bill.

MOTION:    Rep. Froerer moved to transmit 1st Sub H.B. 35 as amended. The motion passed with Rep. Cosgrove, Rep. Duckworth, Rep. Johnson, and Rep. Moss voting in opposition.

H.B. 70    Cigarette Tax Exemption Amendments (Rep. E. Vickers)

Rep. Vickers introduced the bill and explained it to the committee. Bruce Johnson, Utah State Tax Commission, spoke in favor of the bill.


MOTION:    Rep. Dougall moved to transmit H.B. 70 with a favorable recommendation. The motion passed unanimously.

MOTION:    Rep. Dougall moved that H.B. 70 be placed on the Consent Calendar. The motion passed unanimously.

H.B. 71    Withholding Tax Amendments (Rep. E. Vickers)

Rep. Vickers introduced the bill and explained it to the committee. Bruce Johnson, Utah State Tax Commission spoke in favor of the bill.

MOTION:    Rep. Johnson moved to transmit H.B. 71 with a favorable recommendation. The motion passed unanimously with Rep. Moss absent for the vote.

H.B. 76    Income Tax Credit for Military Retired Pay (Rep. S. Mascaro)

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

1.    Page 1, Lines 21 through 22 :    

             21          This bill
{   has retrospective operation   }        takes effect       for a taxable year beginning on or after January 1,

             22     
{   2009   }        2010       .



2.    Page 3, Lines 79 through 80 :    

             79          (4) The maximum amount of a tax credit a claimant may claim on a return for a taxable
             80      year, regardless of filing status, is the amount determined under Subsection
{   (1)   }        (2)       .



3.    Page 3, Lines 85 through 87 :    

             85          Section 3.
{   Retrospective operation   }        Effective date       .

             86          This bill
{   has retrospective operation   }        takes effect       for a taxable year beginning on or after January 1,

             87     
{   2009   }        2010       .


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


Rep. Mascaro introduced amended H.B 76 and explained it to the committee. Royce Van Tassell, Utah Taxpayers Association, spoke against the bill.

MOTION:    Rep. Johnson moved to transmit H.B. 76 as amended with a favorable recommendation. The motion passed unanimously with Rep. Dougall, Rep. Moss, and Rep. Sandstrom absent for the vote.

H.B. 83    Property Tax Relief Programs (Rep. G. Froerer)

Rep. Froerer introduced the bill and explained it to the committee. Allison Rowland, Voices for Utah Children, spoke in favor of the bill.

MOTION:    Rep. Cosgrove moved to transmit H.B. 83 with a favorable recommendation. The motion passed unanimously with Rep. Dougall, Rep. Moss, and Rep. Sandstrom absent for the vote.

MOTION:    Rep. Johnson moved that H.B. 83 be placed on the Consent Calendar then withdrew the motion .

H.B. 246    Property Tax - Residential Exemption (Rep. G. Froerer)

This bill was not heard in this meeting.

MOTION:    Rep. Harper moved to adjourn. The motion passed unanimously with Rep. Dougall, Rep. Moss, and Rep. Sandstrom absent for the vote..

Rep. Kiser adjourned the meeting at 9:26 a.m.

    







                            __________________________
                            Rep. Todd E. Kiser, Chair