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February 17, 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. Eric Hutchings
Rep. Christine Johnson
Rep. Carol Spackman Moss
Rep. Merlynn T. Newbold
Rep. Stephen Sandstrom
Rep. Evan Vickers
MEMBERS ABSENT: Rep. Jennifer Seelig
STAFF PRESENT: 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 8:15 a.m.
MOTION: Rep. Fisher moved to approve the minutes of the February 12, 2009 meeting. The motion passed unanimously with Rep. Allen, Rep. Hughes, Rep. Hutchings, Rep. Johnson, Rep. Moss, Rep. Sandstrom, and Rep. Froerer absent for the vote.
S.B. 35 Sales and Use Tax Definitions Relating to Property (Sen. W. Niederhauser) (Rep. J. Dougall)
MOTION: Rep. Dougall moved to amend the bill as follows:
1. Page 22, Lines 663 through 664 :
663 (iii) property attached to oil, gas, or water pipelines, [
664 property listed in
{
[
}
Subsection
{
]
}
{
Subsections
}
(68)(c)(iii)
{
through (v)
}
or (iv)
.
2. Page 23, Lines 685 through 695 :
685 [
686 [
687 3, Utah Administrative Rulemaking Act;
{
[
}
or
{
]
}
688
{
(iv) the following if attached to real property, regardless of whether the
attachment to
689 real property is only through a line that supplies water, electricity, gas, telephone, cable, or
690 supplies a similar item as determined by the commission by rule made in accordance with Title
691 63G, Chapter 3, Utah Administrative Rulemaking Act:
692 (A) a hot water heater;
693 (B) a water [softener] filtration system; or
694 (C) a water [filtration] softener system; or }
695
{
(v)
}
(iv)
an item listed in Subsection (108)(c).
The motion passed unanimously with Rep. Allen, Rep. Hughes, Rep. Hutchings, Rep. Johnson, Rep. Moss, and Rep. Froerer absent for the vote.
Sen. Niederhauser introduced the amended bill and explained it to the committee.
MOTION: Rep. Cosgrove moved to transmit S.B. 35 as amended with a favorable recommendation. The motion passed unanimously with Rep. Hughes, Rep. Hutchings, Rep. Johnson, and Rep. Moss absent for the vote.
MOTION: Rep. Dougall moved that S.B. 35 be placed on the Consent Calendar. The motion passed unanimously with Rep. Hughes, Rep. Hutchings, Rep. Johnson, and Rep. Moss absent for the vote.
1st Sub. S.B. 36 Sales and Use Tax Amendments (Sen. C. Bramble) (Rep. W. Harper)
Rep. Harper introduced the bill and explained it to the committee.
MOTION: Rep. Dougall moved to transmit 1st Sub. S.B. 36 with a favorable recommendation. The motion passed unanimously with Rep. Hutchings, Rep. Johnson, and Rep. Moss absent for the vote.
H.B. 157 Property Tax Assessment Amendments (Rep. W. Harper)
MOTION: Rep. Harper moved to amend the bill as follows:
1. Page 1, Lines 16 through 17 :
16 . requires second through sixth class counties to levy an additional .000010 per dollar
17 of taxable value for its
{
Muliticounty
}
Multicounty
Assessing and Collection
Levy;
2. Page 9, Line 250 through Page 9, Line 271 :
250 the following calendar year.
251 Section 4. Section 59-2-1606 is enacted to read:
252 59-2-1606. Multicounty Appraisal Trust Account --
{
Additional .000010
253 multicounty assessing and collecting levy }
Deposits into the Multicounty
Appraisal Trust Account
-- Distribution and use of funds.
254 (1) As used in this section:
255 (a) "CAMA" means
computer assisted
mass appraisal
{
system
}
.
256 (b) "CAMA fee rate" means:
257 (i) $1.50 for the calendar year that begins on January 1, 2009; and
258 (ii) for a calendar year beginning on or after January 1, 2010, the $1.50 shall be
259 increased each year by 2%.
260 (c) "Factored parcel count" means the product of:
261 (i) a county's parcel count described in Subsection 59-2-1603 (3)(f); and
262 (ii) the county's
{
class
}
parcel
factor described in Subsection
59-2-1603
(3)(e).
263 (d) "Multicounty Appraisal Trust" means the Multicounty Appraisal Trust created by
264 interlocal agreement by all 29 counties in the state.
265 (e) "Multicounty Appraisal Trust Account" means the Multicounty Appraisal Trust
266 Account created in this section.
267 (2) (a) There is created a restricted account within the Property Tax Valuation Agency
268 Fund known as the "Multicounty Appraisal Trust Account."
269 (b) The purpose of the Multicounty Appraisal Trust Account is to provide funding for a
270 statewide
{
assisted mass appraisal
}
CAMA
system that will promote:
271
(i) accurate valuation of property;271
3. Page 10, Lines 290 through 291 :
290 (4) The Multicounty Appraisal Trust shall determine which projects should be funded
291 and oversee the administration of a statewide
{
computer assisted mass
appraisal
}
CAMA
system.
The motion passed unanimously with Rep. Johnson and Rep. Moss absent for the vote.
Rep. Harper, assisted by Kris Poulson, Utah County Assessor, introduced the bill and explained it to the committee. Brent Gardner, Utah Association of Counties, spoke in favor of the bill.
MOTION: Rep. Cosgrove moved to transmit H.B. 157 as amended with a favorable recommendation. The motion passed unanimously with Rep. Johnson and Rep. Moss absent for the vote.
H.B. 199 Statewide Equalization of School Funding (Rep. W. Harper)
Rep. Harper moved to amend H.B. 199 as follows:
1. Page 4, Lines 103 through 104 :
103
{
Capitol
}
Capital
Outlay Equalization Program
104 53A-21-601. Capital Outlay Equalization Program -- Definitions.
2. Page 5, Lines 126 through 127 :
126 (e) "Contributing district" or "contributing school district" means a
participating
school district that
127 in a fiscal year receives less revenue from the allocations made under Section 53A-21-602 than
3. Page 5, Line 130 :
130 (f) "Neutral school district" means a
participating
school district that in a fiscal
year receives the
4. Page 5, Lines 133 through 134 :
133 53A-21-603 .
134 (g)
"Participating school district" or "participating district" means a school
district that:
(i) is located in a county of the first, second, or third class; or
(ii) is located in a county of the fourth, fifth, or sixth class and notifies the State Board of Education of its intent to participate in the Capital Outlay Equalization Program.
(h)
"Rate reduction limitation increment" means, for a receiving district whose
5. Page 5, Line 142 :
142
{
(h)
}
(i)
"Receiving district" or "receiving school district" means a
participating
school district that in a
6. Page 5, Lines 149 through 151 :
149 2010-11, the State Board of Education shall allocate funding from the Capital Outlay
150 Equalization Fund to a
participating
school district in an amount equal to the product
of:
151 (i) the adjusted allocation amount per student; and
7. Page 6, Lines 168 through 169 :
168 (2) The State Board of Education shall allocate to a
participating
school district
the greater of an
169 amount equal to
{
a
}
the participating
school district's allocation pursuant to
Subsection (1) or an amount equal to
8. Page 6, Lines 170 through 177 :
170 the revenue generated within the
participating
school district by the imposition of the
basic capital outlay
171 levy required under Section 53A-21-603 if
{
:
172 (a) the school district is in a county of the fourth through sixth class; or
173 (b) } the
participating
school district:
174
{
(i)
}
(a)
has a school district property tax base per enrolled student less
than 70% of the
175 statewide average property tax base per enrolled student; and
176
{
(ii)
}
(b)
a combined capital levy rate greater than 70% of the highest
combined capital levy
177 rate.
9. Page 6, Line 180 through Page 7, Line 184 :
180 shall reduce each district's allocation by an equal percentage.
181 (4) A
participating
school district shall remit to the State Board of Education
an amount equal to the
182 revenue generated from the basic capital outlay tax rate imposed under Section 53A-21-603 on
183 or before the June 30 immediately following the end of the taxable year in which the
participating1
school
184 district imposes the basic capital outlay tax rate.
10. Page 7, Line 199 :
199 decrease other allocations that would otherwise be made to a
participating
school
district, if the accounting
11. Page 7, Lines 205 through 207 :
205 For taxable years beginning on or after January 1, 2010, in order to qualify for receipt of
206 state funds pursuant to Title 53A, Chapter 17a, Minimum School Program Act, a
participating
school district
207 shall impose a basic capital outlay tax rate of
{
.000727
}
.000584
per dollar of
taxable value.
12. Page 7, Line 212 through Page 8, Line 215 :
212 (b) "Combined capital outlay certified tax rate" means a combined capital levy tax rate
213 that will provide the same ad valorem property tax revenues for a
participating
school district as were
214 budgeted by that
participating
school district for the prior year for the
participating
school district's combined capital levy
215
rate.
215
13. Page 8, Lines 219 through 224 :
219 (3) The calculation of a
participating
school district's combined capital outlay
certified tax rate shall
220 be used:
221 (a) by the State Board of Education to determine the allocation of funds from the
222 Capital Outlay Equalization Fund in accordance with Section 53A-21-602 ; and
223 (b) to offset
{
a
}
the participating
school district's aggregate certified tax
rate as provided in Section
224 59-2-924.5 .
The motion passed unanimously.
Rep. Harper, assisted by Angela Oakes, Associate General Counsel, Office of Legislative Research and General Counsel, introduced the bill and explained it to the committee with the use of a handout. Janet Roberts, Utah School Boards Association, and Brian Allen, Cottonwood Heights City, spoke against the bill. Kathie Johnson, South Jordan City Council, and Royce Van Tassell, Utah Taxpayers Association, spoke in favor of the bill.
MOTION: Rep. Allen moved to transmit H.B. 199 with a favorable recommendation.
SUBSTITUTE MOTION: Rep. Hutchings moved to adjourn. The motion passed with Rep. Allen, Rep. Dougall, Rep. Harper, Rep. Newbold, and Rep. Kiser voting in opposition and Rep. Moss and Rep. Sandstrom absent for the vote.
Rep. Kiser adjourned the meeting at 9:54 a.m.
__________________________
Rep. Todd E. Kiser, Chair