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MINUTES OF THE
SENATE REVENUE AND TAXATION STANDING COMMITTEE MEETING

Room 250, State Capitol
February 12, 2013

Members Present:         Sen. Deidre Henderson, Chair
                Sen. J. Stuart Adams
                Sen. Jim Dabakis
                Sen. Gene Davis
                Sen. Wayne A. Harper
                Sen. Scott K. Jenkins
                Sen. Howard A. Stephenson
                Sen. John L. Valentine

Members Absent:        Sen. Curtis S. Bramble
                

Staff Present:         Mr. Phillip V. Dean, Policy Analyst
                Ms. Nancy A. Skidmore, Committee Secretary

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

Chair Henderson called the meeting to order at 2:12 p.m.

Approval of Minutes

MOTION:    Sen. Harper moved to approve the minutes of February 8, 2013. The motion         passed unanimously with Sens. Adams, Davis, and Jenkins absent for the vote.

1st Sub S.B. 58 Amendments to Sales and Use Tax (W. Harper)

Sen. Harper presented and explained the bill.

MOTION:    Sen. Harper moved to replace 1st Sub S.B. 58. with 2nd Sub S.B. 58. The motion         passed unanimously with Sens. Adams, Davis, and Jenkins absent for the vote.

MOTION:    Sen. Valentine moved to amend 2nd Sub S.B. 58. as follows:



1.    Page 29, Lines 875 through 878 :    

             875          (7) (a) The revenue and interest described in Subsection (6)(a) may be
{   expended for

             876      local purposes  
}
  used to lower sales tax rates       as the Legislature may provide by

statute.


             877          (b) The revenue and interest described in Subsection (6)(b) may
{   be expended as the

             878      Legislature  
}
  be used to lower sales tax rates as       may      {   provide   }        be provided       by statute.



The motion passed, with Sens. Dabakis and Davis voting in opposition and Sens. Adams and Jenkins absent for the vote.

MOTION:    Sen. Stephenson moved to pass 2nd Sub S.B. 58 out favorably. The motion         passed, with Sens. Dabakis and Davis voting in opposition and Sens. Adams and         Jenkins absent for the vote.

S.B. 171     Sales and Use Tax Exemption for Electronic Financial Payment Services (H.         Stephenson)

Sen. Stephenson presented and explained the bill.

Spoke in favor of the bill:     Jeff Edwards, President and CEO, Economic Development                  Corporation of Utah

Spoke to the bill:        Allison Rowland, Director of Research and Budget, Voices for                  Utah Children
                Gary R. Thorup, Attorney, Representing eBay
                Rob Wall, City Attorney, City of South Jordan

MOTION:    
Sen. Stephenson moved to pass S.B. 171 out favorably. The motion passed         unanimously with Sen. Davis absent for the vote.

H.B. 67    Personal Property Taxation Revision (G. Froerer)

Sen. Froerer presented and explained the bill.

MOTION:    Sen. Harper moved to substitute H.B. 67 with 1st Sub. H.B. 67. The motion         passed unanimously with Sens. Dabakis and Davis absent for the vote.

Spoke to the bill:        John Ulibarri, Weber County Assessor, President, Utah                        Association of County Assessors                              Lee Brinton, Meadow Creek Development            
                Jayceen Walker, Building Owners and Managers Association of                  Utah
                Chase Everton, Utah Taxpayers Association


MOTION:    Sen. Adams moved to pass 1st Sub. H.B. 67 out favorably. The motion passed         unanimously with Sen. Davis absent for the vote.
                                                
SUB 1 H.B. 74    Property Tax Modifications (Rep. Mathis)

MOTION:    Sen. Valentine moved to amend 1st Sub. H.B. 74 as follows:




1.    Page 11, Lines 318 through 327
    House Floor Amendments
    2-8-2013 :
    

             318          H. [(32)] (33) .H "Split estate mineral rights owner" means a person who:
             319          (a) has a legal right to extract a mineral from property;
             320          (b) does not hold more than a H. [1%] 25% .H interest in:
             321          (i) the
{   property's   } land surface rights        of the property where the wellhead is located       ; or

             322          (ii) an entity with an ownership interest in the
{   property's   } land surface rights        of the property where the wellhead is located       ;

             323          (c) is not an entity in which the owner of the
{   property's   } land surface rights        of the property where the wellhead is located       holds more

             324      than a H. [1%] 25% .H interest; and
             325          (d) does not have a relationship with an owner of the
{   property's   } land surface rights        of the property where the wellhead is located       H. [ that

             326      is a relationship described in Subsection 267(b), Internal Revenue Code, except that the term
             327      1% shall be substituted for the term 50% in Subsection 267(b), Internal Revenue Code
] .H .

The motion passed unanimously with Sens. Adams, Davis, and Harper absent for the vote.

Spoke in favor of the bill:    Lee Peacock, Utah Petroleum Association

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

MOTION:    Sen. Jenkins moved to pass 1st Sub. H.B. 74 out favorably. The motion passed         unanimously, with Sens. Adams, Davis, Harper, and Stephenson absent for the         vote, and Sen. Valentine declaring a conflict of interest.



MOTION:    
Sen. Jenkins moved to adjourn. The motion passed with Sens. Adams, Davis,         Harper, and Stephenson absent for the vote.

Chair Henderson adjourned the meeting at 3:50 p.m.

Minutes reported by Nancy A. Skidmore, Secretary








____________________________________
Sen. Deidre M. Henderson, Committee Chair