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MINUTES OF THE

HOUSE REVENUE AND TAXATION

STANDING COMMITTEE

Room 445 - State Capitol, State Capitol Complex


                     March 2, 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:        Richard North, 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 7:40 a.m.

MOTION:    Rep. Wimmer moved to approve the minutes of the February 28, 2011 meeting. The motion passed unanimously, with Rep. Clark, Rep. Cosgrove, Rep. Dougall and Rep. King absent for the vote.

H.B. 282    Sales and Use Tax and Income Tax Amendments (Rep. K. McIff)


Rep. McIff distributed handouts and explained the bill to the committee.

MOTION:    Rep. Newbold moved to substitute H.B. 282 with 1st Substitute H.B. 282. The motion passed unanimously, with Rep. Briscoe, Rep. Brown, Rep. Clark, Rep. Cosgrove, Rep. Dougall, Rep. Duckworth, Rep. Harper and Rep. Wimmer absent for the vote.


Spoke to the bill:    Roger Tew, Utah League of Cities and Towns
            Allision Rowland, Voices for Utah Children

Spoke in opposition to the bill:    Mike Evans, Utahns Against Hunger
                    Ronald Mortensen, Citizens for Tax Fairness
                    Steve Erickson, Crossroads Urban Center
                    Art Sutherland, Coalition of Religious Communites

MOTION:    Rep. Froerer moved to pass H.B. 282 with a favorable recommendation.

SUBSTITUTE
MOTION:    Rep. Nielson moved to hold H.B. 282. The motion passed, with Rep. Briscoe, Rep. Cosgrove, Rep. Froerer, Rep. Hutchings, Rep. Newbold and Rep. Painter voting in opposition to the motion. Voting in favor of the motion were Rep. Butterfield, Rep. Clark, Rep. Dougall, Rep. Duckworth, Rep. Fisher, Rep. Nielson and Rep. Wimmer. Rep. Brown, Rep. Harper and Rep. King were absent for the vote.


H.B. 436    Life Science Development Act (Rep. D. Clark)

Rep. Clark distributed a handout and explained the bill to the committee.

Spoke in favor of the bill:    Kelvyn Cullimore, Dynatronics Corporation
                Rich McKeown, Leavitt Partners

MOTION:    Rep. Newbold moved to pass H.B. 436 with a favorable recommendation. The motion passed unanimously, with Rep. Dougall and Rep. King absent for the vote.


H.B. 277    Sales and Use Tax Revisions (Rep. W. Harper)

Rep. Harper explained the bill to the committee.

Spoke to the bill:    Bruce Johnson, Utah State Tax Commission

MOTION:    Rep. Fisher moved to pass H.B. 277 with a favorable recommendation. The motion passed unanimously, with Rep. Cosgrove, Rep. Dougall and rep. King absent for the vote.


1st Sub. S.B. 21    Tax Revisions (Sen. W. Niederhauser) (Rep. W. Harper)

Rep. Niederhauser explained the bill to the committee.



MOTION:    Rep. Harper moved to substitute 1st Substitute S.B. 21 with 2nd Substitute S.B. 21. The motion passed unanimously, with Rep. Cosgrove, Rep. Dougall and Rep. King absent for the vote.

Spoke in favor of the bill:    Royce Van Tassell, Utah Taxpayers Association
                Bruce Johnson, Utah State Tax Commission

MOTION:    Rep. Fisher moved to pass S.B.21 2nd Substitute with a favorable recommendation. The motion passed unanimously, with Rep. Brown, Rep. Cosgrove, Rep. Dougall, Rep. Harper, Rep. King and Rep. Wimmer absent for the vote.


Rep. Painter relinquished the chair to Rep. Clark.


1st Sub. S.B. 157    Property Tax Revisions (Sen. C. Bramble) (Rep. P. Painter)

Rep. Painter distributed a handout to the committee, assisted by Shelley Teusher.

Rep. Newbold moved to amend the bill as follows:
    


1.    Page 2, Line 30
    Senate 3rd Reading Amendments
    2-24-2011 :
    

             30          (1)
  (a)       The commission may enter into an agreement with a commercial or industrial


2.    Page 2, Line 33
    Senate 3rd Reading Amendments
    2-24-2011 :
    

             33          
{   (a)   }        (i)       the payment schedule is based on an accepted valuation methodology that


3.    Page 2, Line 36
    Senate 3rd Reading Amendments
    2-24-2011 :
    

             36          
{   (b)   }        (ii)       the agreement includes a provision making the initial equal payment schedule


4.    Page 2, Lines 40 through 41
    Senate 3rd Reading Amendments
    2-24-2011 :
    

             40          
{   (c)   }        (iii)       the commission, the taxpayer, and each affected      {   county   }        taxing entity       approve the agreement; and

             41          
{   (d)   }        (iv)       the total amount the taxpayer pays under the agreement is no less than the amount


5.    Page 2, Line 42
    Senate 3rd Reading Amendments
    2-24-2011 :
    

             42      the taxpayer would have paid in the absence of the agreement.
    
  (b) A taxing entity may not approve an agreement under this section on behalf of another taxing entity.      


The motion passed unanimously, with Rep. Brown, Rep. Dougall, Rep. Harper, Rep. King and Rep. Wimmer absent for the vote.

Rep. Nielson moved to amend the bill as follows:


6. Page 2, Line 32:        After "exceed" delete "ten" and insert "20"

The motion passed, with Rep. Fisher and Rep. Newbold voting in opposition. Rep. Brown, Rep. Dougall, Rep. Harper and Rep. King were absent for the vote.

Spoke in opposition to the bill:    Kevin Jacobs, Deputy Salt Lake County Assessor

MOTION:    Rep. Painter moved to pass 1st Substitute amended S.B. 157 with a favorable recommendation. The motion passed unanimously, with Rep. Brown, Rep. Harper and Rep. King absent for the vote.

Rep. Clark relinquished the chair to Rep. Wimmer.


S.B. 132    Sales and Use Tax Exemption for an Energy Efficient Stove or Energy Efficient Stove Fuel (Sen. G. Davis) (Rep. M. Brown)

MOTION:    Rep. Dougall moved to table S.B. 132. The motion passed with Rep. Cosgrove and Rep. Hutchings voting in opposition. Rep. Briscoe, Rep. Brown, Rep. Harper and Rep. King absent for the vote.



Rep. Painter resumed the chair.

MOTION:    Rep. Dougall moved to adjourn. The motion passed unanimously, with Rep. Brown, Rep. Harper and Rep. King absent for the vote.

Rep. Painter adjourned the meeting at 9:25 a.m.



                            __________________________
                            Rep. Patrick Painter, Chair