Link to Zipped WordPerfect Minutes 8K bytes
February 1, 2010
MEMBERS PRESENT: Rep. Todd Kiser, Chair
Rep. Gage Froerer, Vice Chair
Rep. Sheryl Allen
Rep. Tim M. Cosgrove
Rep. John Dougall
Rep. Julie Fisher
Rep. Wayne Harper
Rep. Greg Hughes
Rep. Eric Hutchings
Rep. Carol Spackman Moss
Rep. Merlynn T. Newbold
Rep. Stephen Sandstrom
Rep. Jennifer Seelig
Rep. Evan Vickers
MEMBERS ABSENT: Rep. Christine Johnson
MEMBERS EXCUSED: Rep. Susan Duckworth
STAFF PRESENT: Phil Dean, Policy Analyst
Kathy Sorg, 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 8:40 a.m.
MOTION: Rep. Allen moved to approve the minutes of the January 28, 2010 meeting. The motion passed unanimously with Rep. Dougall, Rep. Harper and Rep. Hughes absent for the vote.
S.B. 30 Local Option Sales and Use Taxes for Transportation Act (Sen. W. Niederhauser) (Rep. R. C. Webb)
Sen. Niederhauser explained the bill to the committee.
Spoke in favor of the bill: Bruce Jones, Utah Transit Authority
Roger Tew, Utah League of Cities and Towns
MOTION: Rep. Fisher moved to pass S.B. 30 with a favorable recommendation. The motion passed unanimously with Rep. Dougall, Rep. Harper and Rep. Hughes absent for the vote.
S.B. 28 Amendments to Individual Income Tax Return Filing Requirements (Sen. J. S. Adams) (Rep. T. Kiser)
Sen. Adams explained the bill to the committee. Lynn Solarczyk, Utah State Tax Commission, spoke in favor of the bill.
MOTION: Rep. Allen moved to pass S.B. 28 with a favorable recommendation. The motion passed unanimously with Rep. Harper and Rep. Hughes absent for the vote.
MOTION: With the sponsor's consent, Rep. Kiser moved to place S.B. 28 on the Consent Calendar. The motion passed unanimously with Rep. Harper and Rep. Hughes absent for the vote.
S.B. 23 Corporate Franchise and Income Tax Amendments (Sen. J. Valentine) (Rep. W. Harper)
Sen. Valentine, assisted by Rep. Harper, explained the bill to the committee. Lynn Solarczyk, Utah State Tax Commission, spoke in favor of the bill.
MOTION: Rep. Harper moved to adopt Amendment 1 to S.B. 23 as follows:
1. Page 12, Lines 348 through 354 :
348 [
349 considered to be received or received from [
350 subsidiary that:
351 (i) is a member of
{
a
}
the
unitary group [and are];
352 (ii) is organized or incorporated outside of the United States [
353
354 (iii) is not included in a combined report under Section 59-7-402 or 59-7-403 [
2. Page 14, Lines 423 through 430 :
423 (3) (a) For purposes of calculating the subtraction provided for in Subsection (1)(k), a
424 taxpayer shall first subtract from a dividend considered to be received or received an expense
425 directly attributable to that dividend
{
as determined under Subsection (3)(b)
}
.
426
(b) For purposes of Subsection (3)(a),
426
the amount of
an interest expense that is
considered to be
directly attributable to
427 a dividend is calculated by multiplying the interest expense by a fraction:
428 (i) the numerator of which is the taxpayer's average investment in the dividend paying
429 subsidiaries; and
430 (ii) the denominator of which is the taxpayer's average total investment in assets.
The motion to amend passed unanimously with Rep. Moss and Rep. Seelig absent for the vote.
MOTION: Rep. Hutchings moved to pass S.B. 23 as amended with a favorable recommendation. The motion passed unanimously with Rep. Moss and Seelig absent for the vote.
MOTION: Rep. Dougall moved to adjourn. The motion passed unanimously with Rep. Moss and Rep. Seelig absent for the vote.
Rep. Froerer adjourned the meeting at 9:15 a.m.
__________________________
Rep. Todd E. Kiser, Chair