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MINUTES OF THE

HOUSE REVENUE AND TAXATION

STANDING COMMITTEE

Room 445 - State Capitol, State Capitol Complex


                     February 3, 2011

MEMBERS PRESENT:     Rep. Patrick Painter, Chair
                Rep. Carl Wimmer, Vice Chair
                Rep. Joel Briscoe                
                Rep. Mel Brown
                 Rep. David Butterfield                      
                 Rep. David Clark
                Rep. Tim Cosgrove
                Rep. John Dougall                 
                Rep. Susan Duckworth
                Rep. Julie Fisher                  
                Rep. Gage Froerer
                Rep. Wayne Harper                          
                 Rep. Eric Hutchings                         
                Rep. Brian King
                Rep. Merlynn Newbold
                Rep. Jim Nielson     


STAFF PRESENT:        Phil Dean, Policy Analyst
                Tamara Schaff, Secretary
                    
Note:    A list of visitors and a copy of handouts are filed with the committee minutes.

Rep. Painter called the meeting to order at 2:09 p.m.

MOTION:    Rep. Wimmer moved to approve the minutes of the January 31, 2011 meeting. The motion passed unanimously, with Rep. Briscoe, Rep. Brown, Rep. Clark, Rep. Dougall, Rep. Duckworth, Rep. Fisher, Rep. Hutchings, and Rep. King absent for the vote.

H.B. 72    Taxes and Related School Funding Provisions Amendments (Rep. M. Noel)

Rep. Noel explained the bill to the committee.

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


1.    Page 1, Lines 16 through 23 :    


             16      taxes;
             17          .    creates a School Equalization
{   Fund   }        Account       and provides for operation of the      {   fund   }        account       ;

             18          .    deposits revenues from the state sales and use tax increases into the School
             19      Equalization
{   Fund   }        Account       ;

             20          .    provides a methodology for allocations from the School Equalization
{   Fund   }        Account       ;

             21          .    reduces school district certified property tax rates by the amount of allocations from
             22      the School Equalization
{   Fund   }        Account       ;

             23          .    prohibits all taxing entities from imposing a property tax rate higher than the



2.    Page 8, Lines 227 through 229 :    

             227          (F) a voted capital outlay levy imposed under Section 53A-16-110 ; and
             228          (G) the School Equalization
{   Fund   }        Account       , in accordance with Section 53A-21-603 , except for

             229      allocations used to abate property taxes imposed for bond payments in accordance with Section


3.    Page 8, Lines 241 through 243 :    

             241      bonded indebtedness from the debt service levy imposed under Section 11-14-310 and
             242      allocations from the School Equalization
{   Fund   }        Account       created in Section 53A-21-603 ; and

             243          (ii) divide the sum calculated under Subsection (1)(d)(i) by statewide school district


4.    Page 16, Lines 486 through 489 :    

             486          (b) the school district's ADM.
             487          (8) "School Equalization
{   Fund   }        Account       " or "      {   fund   }        account       " means the      {   fund   }        account       created in Section

             488      53A-21-602 .
             489          [(8)] (9) "Statewide average property tax base per ADM" means the quotient of:


5.    Page 17, Lines 503 through 515 :    

             503          Section 9. Section 53A-21-602 is enacted to read:
             504          53A-21-602. School Equalization
{   Fund   }        Account       -- Sources of revenue -- Interest.

             505          (1) There is created a
{   special revenue fund   }        restricted account       within the Education Fund known as the

             506      "School Equalization
{   Fund   }        Account       ."

             507          (2) (a) The
{   fund   }        account       shall be funded by:

             508          (i) sales and use tax revenues deposited in accordance with Section 59-12-103 ; and
             509          (ii) legislative appropriations.
             510          (b) Any interest earned on the
{   fund   }        account       shall be deposited into the      {   fund   }        account       .

             511          (3) The State Board of Education shall distribute revenues deposited into the
{   fund   }        account       in

             512      accordance with Section 53A-21-603 .
             513          (4) A school district or charter school that receives an allocation from the School
             514      Equalization
{   Fund   }        Account       :

             515          (a) shall first use funds to reduce and replace property taxes imposed for capital outlay


6.    Page 18, Lines 526 through 529 :    

             526          (3) Except as provided in Subsection (4), the State Board of Education shall annually:
             527          (a) determine the amount of funds available in the School Equalization
{   Fund   }        Account       for

             528      allocation;
             529          (b) distribute 75% of the available funds to school districts in proportion to each school


7.    Page 107, Lines 3294 through 3297 :    

             3294          (13) Notwithstanding Subsection (3)(a), beginning on July 1, 2012, the Division of
             3295      Finance shall deposit into the School Equalization
{   Fund   }        Account       created in Section 53A-21-602 7.5%

             3296      of the revenues collected from the state sales and use taxes imposed under Subsections


             3297      (2)(a)(i)(A) and (2)(b)(i).


8.    Page 140, Line 4308 through Page 141, Line 4330 :                  4308          (3) The amendments to the following sections take effect on July 1, 2012:
             4309          (a) Section 10-1-405 ;
             4310          (b) Section 11-41-102 ;
      (c) Section 26-36a-206;      

             4311          
{   (c)   }        (d)       Section 53A-1a-513 ;

             4312          
{   (d)   }        (e)       Section 53A-17a-133 ;

             4313          
{   (e)   }        (f)       Section 53A-17a-134 ;

             4314          
{   (f)   }        (g)       Section 53A-21-101.5 ;

             4315          
{   (g)   }        (h)       Section 59-1-401 ;

             4316          
{   (h)   }        (i)       Section 59-12-102 ;

             4317          
{   (i)   }        (j)       Section 59-12-103 ;

             4318          
{   (j)   }        (k)       Section 59-12-104.2 ;

             4319          
{   (k)   }        (l)       Section 59-12-108 ;

             4320          
{   (l)   }        (m)       Section 59-12-401 ;

             4321          
{   (m)   }        (n)       Section 59-12-402 ;

             4322          
{   (n)   }        (o)       Section 59-12-703 ;

             4323          
{   (o)   }        (p)       Section 59-12-802 ;

             4324          
{   (p)   }        (q)       Section 59-12-804 ;

             4325          
{   (q)   }        (r)       Section 59-12-1201 ;

             4326          
{   (r)   }        (s)       Section 59-12-1302 ;

             4327          
{   (s)   }        (t)       Section 59-12-1402 ;

             4328          
{   (t)   }        (u)       Section 59-12-2003 ;

             4329          
{   (u)   }        (v)       Section 59-12-2103 ; and

             4330          
{   (v)   }        (w)       Section 59-12-2204 .




The motion passed unanimously, with Rep. Fisher and Rep. Hutchings absent for the vote.

Spoke to the bill:    Kory Holdaway, Utah Education Association
            Royce Van Tassell, Utah Taxpayers Association

Spoke in opposition to the bill:    Melissa Smith, Utah Community Action Partnership
                    Gina Cornia, Utah Against Hunger
                    Patti Harrington, Utah School Boards Association
                    Art Sutherland, Coalition of Religious Communities


MOTION:    Rep. Wimmer moved to hold H.B. 72. The motion passed unanimously with Rep. Dougall, Rep. Harper and Rep. Hutchings absent for the vote.


H.B. 184    Motor and Special Fuel Tax Act Amendments (Rep. C. Herrod)

Rep. Herrod explained the bill to the committee, assisted by Merritt Norton, CH4 Energy. Handouts were distributed to the committee.

Spoke to the bill:    Allison Rowland, Voices for Utah Children
            Bruce Johnson, Utah Tax Commission

Spoke in favor of the bill:    Rep. Barrus, Utah State Legislature
                David Creer, Utah State Trucking Association

MOTION:    Rep. Clark moved to pass H.B. 184 with a favorable recommendation. The motion passed unanimously with Rep. Harper absent for the vote.


S.B. 24    Motor Vehicle Division Fee Amendments (Sen. K. Van Tassell) (Rep. Julie Fisher)

Sen. Van Tassell distributed a handout and explained the bill to the committee.

Spoke in favor of the bill:    Bruce Johnson, Utah State Tax Commission

MOTION:    Rep. Fisher moved to pass S.B. 24 with a favorable recommendation. The motion passed unanimously with Rep. Harper and Rep. Wimmer absent for the vote.

MOTION:    Rep. Fisher moved to place the bill on the Consent Calendar. The motion passed unanimously with Rep. Harper and Rep. Wimmer absent for the vote.

MOTION:    Rep. Dougall moved to adjourn. The motion passed unanimously with Rep. Harper and Rep. Wimmer absent for the vote. Rep. Painter adjourned the meeting at 4:09 p.m.




                            __________________________
                            Rep. Patrick Painter, Chair