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MINUTES OF THE

HOUSE REVENUE AND TAXATION

STANDING COMMITTEE

Room 445 - State Capitol, State Capitol Complex


                     February 25, 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. Jennifer Seelig
                Rep. Evan Vickers                                                    

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. Froerer called the meeting to order at 8:13 a.m.

MOTION:    Rep. Johnson moved to approve the minutes of the February 23, 2009 meeting. The motion passed unanimously with Rep. Hughes and Rep. Newbold absent for the vote.

H.B. 380    Tourism, Recreation, Cultural, Convention, and Airport Facilities Tax Amendments (Rep. C. Frank)

MOTION:    Rep. Harper moved to adopt 1st Substitute H.B. 380 changing the percentage on line 183 from 3.44% to 2.0%.

SUBSTITUTE MOTION:    Rep. Allen moved to adopt 3rd Substitute H.B. 380. The motion failed with Rep. Allen voting in favor and Rep. Hughes, Rep. Newbold, and Rep. Sandstrom absent for the vote.

The original motion to adopt 1st Substitute H.B. 380 with the change in percentage failed with Rep. Allen, Rep. Cosgrove, Rep. Duckworth, Rep. Hutchings, Rep. Seelig, Rep. Vickers, and Rep. Froerer voting in opposition and Rep. Hughes and Rep. Newbold absent for the vote.

MOTION:    Rep. Johnson moved to proceed to the next item on the agenda.



SUBSTITUTE MOTION:    Rep. Hutchings moved to transmit H.B. 380 with a favorable recommendation. The motion failed with Rep. Cosgrove, Rep. Duckworth, Rep. Fisher, Rep. Sandstrom, Rep. Seelig, Rep. Vickers, and Rep. Froerer voting in opposition and Rep. Hughes and Rep. Newbold absent for the vote.

The original motion to proceed to the next item on the agenda passed with Rep. Dougall voting in opposition and Rep. Hughes and Rep. Newbold absent for the vote.

S.B. 141    Aviation Fuel Tax Amendments (Sen. W. Niederhauser) (Rep. J. Dougall)

Rep. Dougall, assisted by Bruce Johnson, Utah State Tax Commission, introduced the bill and explained it to the committee.

MOTION:    Rep. Johnson moved to transmit S.B. 141 with a favorable recommendation. The motion passed unanimously with Rep. Fisher, Rep. Hughes, and Rep. Newbold absent for the vote.

MOTION:    Rep. Johnson moved to place S.B. 141 on the Consent Calendar. The motion passed unanimously with Rep. Fisher, Rep. Hughes, and Rep. Newbold absent for the vote.

1st Sub. S.B. 23    Income Taxation of Pass-through Entities and Pass-through Entity Taxpayers (Sen. W. Niederhauser) (Rep. J. Dougall)

Rep. Dougall and Sen. Niederhauser, assisted by Bruce Johnson, Utah State Tax Commission, introduced the bill and explained it to the committee. Lee Peacock, Utah Petroleum Association, spoke in favor of the bill.

MOTION:    Rep. Dougall moved to transmit 1st Substitute S.B. 23 with a favorable recommendation. The motion passed unanimously with Rep. Hughes and Rep. Newbold absent for the vote.

H.B. 193    Property Tax - Greenbelt Rollback (Rep. R. Menlove)

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

1.    Page 4, Lines 109 through 116 :    

             109          (1) Notwithstanding Section 59-2-506 and subject to the requirements of this section,
             110      land is not subject to the rollback tax under Section 59-2-506 if:
             111          (a) the land is withdrawn from this part;
             112          (b) the land is donated to a nonprofit entity
  that is exempt as a charitable organization under Utah Constitution Article XIII, Section 3       ;        and      

             113          (c) after the land is donated as described in Subsection (1)(b), the land does not meet


             114      the requirements of Section 59-2-503
{   ; and   }        .      

             115          
{   (d) the land becomes exempt from taxation under Utah Constitution Article XIII,

             116      Section 3.  
}


The motion passed unanimously with Rep. Hughes and Rep. Newbold absent for the vote.

Rep. Menlove, accompanied by Bruce Johnson, Utah State Tax Commission, introduced the bill and explained it to the committee.

The following individuals spoke to the bill:

    Lee Gardner            Salt Lake County Assessor
    Steve White            Utah County Commissioner
    Todd Bingham        Utah Farm Bureau
    Brent Gardner            Utah Association of Counties

MOTION:    Rep. Dougall moved to refer H.B. 193 to interim study. The motion passed with Rep. Harper and Rep. Moss voting in opposition and Rep. Duckworth and Rep. Newbold absent for the vote.

MOTION:    Rep. Hughes moved to adjourn. The motion failed with Rep. Allen, Rep. Dougall, Rep. Harper, Rep. Hutchings, Rep. Moss, Rep. Seelig, and Rep. Kiser voting in opposition.

H.B. 199    Statewide Equalization of School Funding (Rep. W. Harper)

Rep. Harper explained the bill which was discussed and amended in the meeting of February 17, 2009. Tim Leffel, Murray School District, spoke against the bill. Brad Markus, Riverton City Council, spoke in favor of the bill.

MOTION:    Rep. Dougall moved to transmit H.B. 199 with a favorable recommendation. The motion failed with Rep. Allen, Rep. Dougall, Rep. Harper, Rep. Newbold, Rep. Sandstrom, and Rep. Kiser voting in favor.

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

Rep. Froerer adjourned the meeting at 10:00 a.m.


                    
                            __________________________
                            Rep. Todd E. Kiser, Chair