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MINUTES OF THE

HOUSE REVENUE AND TAXATION

STANDING COMMITTEE

Room 445, State Capitol

March 4, 2014

Members Present:         Rep. Ryan Wilcox, Chair
                Rep. Jim Nielson, Vice Chair
                Rep. Jake Anderegg    
                Rep. Joel Briscoe
                 Rep. Mel Brown         
                 Rep. Tim Cosgrove     
                Rep. Steve Eliason                          
                Rep. Gage Froerer
                Rep. Francis Gibson
                 Rep. Eric Hutchings                         
                Rep. Brian King
                Rep. John Knotwell
                Rep. Kay McIff
                Rep. Doug Sagers
                Rep. Jon Stanard
                Rep. Earl Tanner     

Staff Present:        Mr. Leif G. Elder, Policy Analyst
                Ms. An Bradshaw, Secretary
                    
NOTE:    A list of visitors and a copy of handouts are filed with the committee minutes.

Chair Wilcox called the meeting to order at 4:09 p.m.

MOTION:    Rep. Knotwell moved to approve the minutes of the February 26, 2014 and
        March 3, 2014 meetings. The motion passed unanimously with Rep. Anderegg, Rep. Brown, and Rep. Froerer absent for the vote.

Vice Chair Nielson assumed the chair.

H.B. 51    State Tax Commission Report on Tax Provisions (Rep. J. Briscoe)

MOTION:    Rep. Briscoe moved that H.B. 51 be replaced with 2nd Sub. H.B. 51. The motion passed unanimously with Rep. Anderegg, Rep. Brown, Rep. Eliason, Rep. Gibson, Rep. Knotwell, Rep. Stanard, and Rep. Wilcox absent for the vote.

Rep. Briscoe explained the bill to the committee and provided a handout, "HB51: State Tax Commission Report on Tax Provisions."

Spoke to the bill:    Bruce Johnson, Utah Tax Commission    



MOTION:    Rep. King moved to pass out 2nd Sub. H.B. 51 favorably. The motion failed with Rep. Anderegg, Rep. Froerer, Rep. Gibson, Rep. Knotwell, Rep. Sagers, and Rep. Nielson voting in opposition and Rep. Brown, Rep. Eliason, Rep. Stanard, and Rep. Wilcox absent for the vote.

H.B. 285    Alcoholic Beverage Service Amendments (Rep. K. Powell)

MOTION:    Rep. Hutchings moved to replace H.B. 285 with 3rd Sub. H.B. 285. The motion passed with Rep. Anderegg voting in opposition and Rep. Brown, Rep. Eliason, Rep. Stanard, and Rep. Wilcox absent for the vote.

Rep. Powell explained the bill to the committee assisted by Joel LaSalle, Salt Lake Area Restaurant Association, Tai Biesinger, Pentad Properties, and Melva Sine, Utah Restaurant Association. A handout, "Alcohol Use in Utah," was provided.

Chair Wilcox resumed the chair.

Spoke for the bill:        Hans Fuegi, Utah Restaurant Association
                Connor Boyack, Libertas Institute
                Cameron Diehl, Utah League of Cities and Towns
                Nan Anderson, Utah Tourism Coalition
                Steve Barth, SB Strategies
                Dan Deuel, Weber 9/12 Project
                Heather Deuel, citizen

Spoke against the bill:    Stan Rasmussen, Sutherland Institute
                Gordon Lindsay, Utah County SMART Coalition
                Laura Bunker, United Families International
                Jaynie Brown, citizen

MOTION:    Rep. Froerer moved to pass out 3rd Sub. H.B. 285 favorably. The motion passed with Rep. Brown, Rep. Eliason, Rep. Hutchings, Rep. McIff, Rep. Sagers, Rep. Stanard, and Rep. Tanner voting in opposition and Rep. Anderegg absent for the vote.

Rep. Gibson assumed the chair.






H.B. 430    Revisions to Tax (Rep. R. Wilcox)

Rep. Wilcox explained the bill to the committee with the assistance of Rep. Nielson and provided a handout, "H.B. 430 - Revisions to Tax."

Spoke to the bill:    Carlos Braceras, Utah Department of Transportation
            Jay Blaine, Utah Education Association

MOTION:    Rep. Wilcox moved to pass the bill out favorably. The motion passed with Rep. Briscoe, Rep. Hutchings, Rep. King, Rep. McIff, Rep. Sagers, and Rep. Tanner voting in opposition and Rep. Anderegg, Rep. Brown, and Rep. Froerer absent for the vote.

Chair Wilcox resumed the chair.

S.B. 176    Local Funding for Rural Health Care Amendments (Sen. R. Okerlund) (Rep. J. Westwood)

Rep. Westwood explained the bill to the committee with the assistance of Adam Trupp, Utah Association of Counties.

MOTION:    Rep. Gibson moved to pass the bill out favorably. The motion passed unanimously with Rep. Anderegg, Rep. Brown, Rep. Froerer, and Rep. Nielson absent for the vote.

MOTION:    Rep. Knotwell moved to place S.B. 176 on the Consent Calendar. The motion passed unanimously with Rep. Anderegg, Rep. Brown, Rep. Froerer, and Rep. Nielson absent for the vote.

S.B. 206    Tax, Fee, or Charge Offense and Penalty Amendments (Sen. C. Bramble)

Sen. Bramble explained the bill to the committee with the assistance of Wade Fairway, Utah Office of the Attorney General.

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

1.    Page 11, Lines 318 through 323
    Senate Committee Amendments
    2-25-2014 :
    

             318          (c) (i) [A person who, with intent to evade a tax, fee, or charge or requirement of this


             319      title or any lawful requirement of the commission,] With respect to a tax, fee, or charge, a
             320      person who knowingly and intentionally S. , and without
{   a   }        an objective       good faith basis, .S fails to make,

             320a      render, sign, or verify a return S. within the time required by law .S or to
             321      supply information within the time required by law, or who makes, renders, signs, or verifies a
             322      false or fraudulent return or statement, or who supplies false or fraudulent information, is guilty
             323      of a third degree felony.

2.    Page 13, Line 395 through Page 14, Line 401
    Senate Committee Amendments
    2-25-2014 :
    

             395          (c) (i) [Any person who, with intent to evade any tax, fee, or charge as defined in
             396      Section 59-1-401 or requirement of Title 59, Revenue and Taxation, or any lawful requirement
             397      of the State Tax Commission,] With respect to a tax, fee, or charge as defined in Section
             398      59-1-401 , any person who knowingly and intentionally S. , and without
{   a   }        an objective       good faith basis, .S

             398a      fails to make, render, sign, or verify any
             399      return S. within the time required by law .S or to supply any information within the time
             399a      required by law, or who makes, renders,
             400      signs, or verifies any false or fraudulent return or statement, or who supplies any false or
             401      fraudulent information, is guilty of a third degree felony.


SUBSTITUTE MOTION:    Rep. McIff moved to amend the bill as follows:

1.    Page 11, Lines 318 through 323
    Senate Committee Amendments
    2-25-2014 :
    

             318          (c) (i) [A person who, with intent to evade a tax, fee, or charge or requirement of this
             319      title or any lawful requirement of the commission,] With respect to a tax, fee, or charge, a
             320      person who knowingly and intentionally S. , and without a
  reasonable       good faith basis, .S fails to make,


             320a
     render, sign, or verify a return S. within the time required by law .S or to
             321      supply information within the time required by law, or who makes, renders, signs, or verifies a
             322      false or fraudulent return or statement, or who supplies false or fraudulent information, is guilty
             323      of a third degree felony.

2.    Page 13, Line 395 through Page 14, Line 401
    Senate Committee Amendments
    2-25-2014 :
    

             395          (c) (i) [Any person who, with intent to evade any tax, fee, or charge as defined in
             396      Section 59-1-401 or requirement of Title 59, Revenue and Taxation, or any lawful requirement
             397      of the State Tax Commission,] With respect to a tax, fee, or charge as defined in Section
             398      59-1-401 , any person who knowingly and intentionally S. , and without a
  reasonable       good faith basis, .S

             398a      fails to make, render, sign, or verify any
             399      return S. within the time required by law .S or to supply any information within the time
             399a      required by law, or who makes, renders,
             400      signs, or verifies any false or fraudulent return or statement, or who supplies any false or
             401      fraudulent information, is guilty of a third degree felony.

The substitute motion passed unanimously with Rep. Anderegg, Rep. Brown, Rep. Froerer, and Rep. Nielson absent for the vote.

Spoke for the bill:    Bruce Johnson, Utah Tax Commission

MOTION:    Rep. Gibson moved to pass the bill out favorably as amended. The motion passed unanimously with Rep. Anderegg, Rep. Brown, and Rep. Froerer absent for the vote.

MOTION:    Rep. Wilcox moved to place S.B. 206 on the Consent Calendar. The motion passed unanimously with Rep. Anderegg, Rep. Brown, and Rep. Froerer absent for the vote.



S.B. 207    Corporate Franchise and Income Tax Amendments (Sen. C. Bramble)

Sen. Bramble explained the bill to the committee.

MOTION:    Rep. Gibson moved to pass the bill out favorably. The motion passed unanimously with Rep. Anderegg, Rep. Brown, and Rep. Froerer absent for the vote.

MOTION:    Rep. Gibson moved to place S.B. 207 on the Consent Calendar. The motion passed unanimously with Rep. Anderegg, Rep. Brown, and Rep. Froerer absent for the vote.

S.B. 214    Multistate Tax Compact Amendments (Sen. C. Bramble)

Sen. Bramble explained the bill to the committee.

Spoke for the bill:    Bruce Johnson, Utah Tax Commission

MOTION:    Rep. King moved to pass the bill out favorably. The motion passed unanimously with Rep. Anderegg, Rep. Brown, and Rep. Froerer absent for the vote.

MOTION:    Rep. Nielson moved to place S.B. 214 on the Consent Calendar. The motion passed unanimously with Rep. Anderegg, Rep. Brown, and Rep. Froerer absent for the vote.

MOTION:    Rep. Knotwell moved to adjourn the meeting. The motion passed unanimously with Rep. Anderegg, Rep. Brown, and Rep. Froerer absent for the vote.

Chair Wilcox adjourned the meeting at 6:47 p.m.







Ryan D. Wilcox, chair