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MINUTES OF THE
SENATE REVENUE AND TAXATION STANDING COMMITTEE MEETING
THURSDAY, FEBRUARY 26, 2009
, 8:30 A.M.
ROOM 250, STATE CAPITOL


Members Present:    Sen. Wayne L. Niederhauser, Chair     Sen. Curtis S. Bramble
    Sen. Ross Romero
    Sen. Howard A. Stephenson
    Sen. Dennis Stowell
    Sen. John Valentine
    Sen. Brent Goodfellow

Staff Present:    Bryant Howe, Asst. Dir., Office of Leg. Research & Gen. Counsel
    Lorna Wells, Committee Secretary
    
Public Speakers Present:            Mr. Steve White, Vice-Chair Commissioner, Utah Association of Counties
    Mr. Brent Gardner, Executive Director, Utah Association of Counties
    Mr. Bruce Johnson, Commissioner, Utah State Tax Commission
    Mr. Roger Tew, Utah League of Cities and Towns

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

Chair Niederhauser called the meeting to order at 8:37 a.m.

Approval of Minutes

MOTION: Sen. Valentine moved to approve the minutes of 2/24/2009.

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

1. S.B. 235 - Redistribution of Sales and Use Tax Revenues and Property Tax Adjustment

    Sen. John Valentine presented and explained the bill.

     MOTION: Sen. Valentine moved Amendment #1 to S.B. 235.

1.    Page 1, Lines 16 through 17 :    

             16          .    
{   adjusts   }        allows       a county's property tax certified tax rate        to be adjusted       as a result of sales and use tax

             17      redistributions;

2.    Page 6, Lines 164 through 179 :    



             164          (9) (a) Beginning on January 1, 2009, and ending on December 31, 2009, a county's
             165      certified tax rate
{   shall   }        may       be increased        at the request of the county legislative body       by the amount necessary to offset up to the total amount of

             166      sales and use taxes:
             167          (i) collected within the boundaries of the county:
             168          (A) including the sales and use taxes collected within the cities and towns within the
             169      county; and
             170          (B) under Chapter 12, Part 2, Local Sales and Use Tax Act; and
             171          (ii) that the commission redistributes:
             172          (A) from an original recipient political subdivision as defined in Section 59-12-210.1
             173      to a secondary recipient political subdivision as defined in Section 59-12-210.1 ;
             174          (B) as a result of the review, recalculations, and corrected distribution of taxes due
             175      from telecommunications providers initiated by the commission; and
             176          (C)
  if the redistribution to the secondary recipient political subdivision occurs       on or after July 1, 2008, but on or before June 15, 2009.

             177          (b) Beginning on January 1, 2010, and ending on December 31, 2010, a county's
             178      certified tax rate shall be decreased by the amount necessary to offset
{   the   }        an       increase      {   described   }        made       in        accordance with      

             179      Subsection (9)(a).

3.    Page 11, Lines 315 through 319 :    

             315          (2) Subject to Subsection (3), the commission may make a redistribution to a secondary
             316      recipient political subdivision in an amount equal to the eligible portion of qualifying sales and
             317      use tax revenues if:
             318          (a) the commission provides written notice to the following
{   at least 30   }        within 15       days      {   before   }        after       the

             319      commission
{   makes   }        determines to make       the redistribution:



    The motion passed unanimously.

    Sen. Niederhauser relinquished the chair to Sen. Bramble.

    Mr. White and Mr. Gardner spoke in favor of the bill. Mr. Johnson and Mr. Tew spoke to the bill.


     MOTION: Sen. Romero moved to adopt S.B. 235 as amended with a favorable recommendation.

    The motion passed unanimously.

    Sen. Bramble returned the Chair to Sen. Niederhauser

2.     S.B. 210 - Amendments to Property Tax

    Sen. Curtis Bramble presented and explained the bill.

    Sen. Niederhauser relinquished the Chair to Sen. Stowell

     MOTION: Sen. Bramble moved Amendment #1 to S.B. 210.


1.    Page 3, Lines 79 through 84 :    

             79          (6)
{   For   }        (a) Except as provided in Subsection (6)(b), for       calendar years beginning on or after January 1, 2009 and ending on or before

             80      December 31, 2010, the
  method for determining the       fair market value of an aircraft        , aircraft type, or mobile flight equipment       assessed under this part is equal to:

             81          
{   (a)   }        (i)       the value referenced in the Used Price for Avg Acft Wholesale column of the

             82      Airliner Price Guide by make, model, series, and year of manufacture; minus
             83          
{   (b)   }        (ii)       20% of the value described in Subsection (6)(a)        (i)       .

    
  (b) Notwithstanding Subsection (6)(a), for calendar years beginning on or after January 1, 2009 and ending on or before December 1, 2010, the method for determining the fair market value of an aircraft not listed in the Airliner Price Guide is equal to:

    (i) the value references in the Average Wholesale column of the Aircraft Bluebook Price Digest by make, model, series, and year of manufacture; minus
    (ii) 20% of the value described in Subsection (6)(b)(ii).  

             84          Section 2. Retrospective operation.


    The motion passed with Sen. Niederhauser absent for the vote.

    MOTION: Sen. Bramble moved to adopt S.B. 210 as amended with a favorable recommendation.


    The motion passed unanimously with Sen. Niederhauser absent for the vote.

     MOTION: Sen. Bramble moved that S.B.210 as amended be placed on the Consent Calendar.

    The motion passed unanimously.

3.     H.B. 140 Motor Vehicle Registration Fee Amendments

    Rep. Craig Frank presented and explained the bill.

     MOTION: Sen. Bramble moved to adopt H.B. 140 with a favorable recommendation.

    The motion passed unanimously with Sens. Niederhauser and Stephenson absent for the vote.

MOTION: Sen. Romero moved to adjourn.

Chair Stowell adjourned the meeting at 9:50 a.m.

Minutes were reported by Lorna Wells, Committee Secretary.



Sen. Wayne L. Niederhauser, Committee Chair