MINUTES OF THE

HOUSE REVENUE AND TAXATION

STANDING COMMITTEE

Room 445, State Capitol

March 5, 2015

Members Present:                Rep. Daniel McCay, Chair

                                                Rep. Jeremy A. Peterson, Vice Chair

                                                Rep. Joel K. Briscoe

                                                Rep. Rich Cunningham                                                                                                          Rep. Gage Froerer

                                                Rep. Brian M. Greene

                                                Rep. Eric K. Hutchings

                                                Rep. Brian S. King

                                                Rep. John Knotwell

                                                Rep. Mike K. McKell

                                                Rep. Douglas V. Sagers

                                                Rep. Jon E. Stanard

Members Absent:                 Rep. Ken Ivory                       

Staff Present:                        Mark D. Andrews, Policy Analyst

                                                An Bradshaw, Secretary

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

Vice Chair Peterson called the meeting to order at 8:18 a.m.

Angie Stallings, Associate General Counsel, Office of Legislative Research and General Counsel, gave a PowerPoint presentation, "Public School Funding," and answered questions from the committee regarding H.B. 358, S.B. 78, and 3rd Sub. S.B. 97.

H.B. 358         Voted and Board Levy Amendments (Rep. J. Briscoe)

Rep. Briscoe explained the bill to the committee with the assistance of Zane Woolstenhulme, Superintendent, Ogden School District. Bruce Williams, Associate Superintendent, State Office of Education, answered questions from the committee. Seven handouts showing graphs and tables of all Utah school districts' levies and taxes were distributed to the committee.

Spoke against the bill:            Billy Hesterman, Utah Taxpayers Association

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

1.    Page 1, Lines 14 through 17:   

14state will guarantee;

15 {    ►      increases the maximum rate that a school district may impose for the voted local

16levy;  }

17   ►      provides that all school districts are subject to the same property tax rate cap for the

2.    Page 2, Lines 54 through 55:   

54   (ii) The tax rate for a voted local levy may not exceed {  [  } .002 {  ]  } {  .0024  } per dollar of taxable

55value.

3.    Page 6, Lines 169 through 171:      

169 (1) For purposes of this section:

170 (a) "Eligible funds" means an amount equal to {  30%  }  10%  of the increased collections from

171the state's income tax.

The motion passed unanimously with Rep. McCay absent for the vote.

MOTION:     Rep. Cunningham moved to move to the next item on the agenda. The motion passed unanimously with Rep. McCay absent for the vote.

S.B. 241          Sales Tax Amendments (Sen. W. Harper)

Sen. Harper explained the bill to the committee.

MOTION:     Rep. Cunningham moved to pass the bill out favorably. The motion passed unanimously with Rep. McCay absent for the vote.

MOTION:     Rep. Peterson moved to place S.B. 241 on the Consent Calendar. The motion passed unanimously with Rep. McCay absent for the vote.

1st Sub. S.B. 182       Amendments to Sales and Use Tax Exemptions (Sen. C. Bramble)

Sen. Bramble explained the bill to the committee.

Spoke for the bill:       Billy Hesterman, Utah Taxpayers Association

                                   Matt Holton, Utah Manufacturers Association

MOTION:     Rep. Cunningham moved to pass the bill out favorably. The motion passed unanimously with Rep. King and Rep. McCay absent for the vote.

3rd Sub. S.B. 97        Property Tax Equalization Amendments (Sen. A. Osmond)

Sen. Osmond explained the bill to the committee with the assistance of Sen. Stephenson and gave a PowerPoint presentation on the property tax base for Utah school districts.

Spoke for the bill:                   Bruce Williams, Associate Superintendent, State Office of Education

                                               Susan Pulsipher, Jordan School Board

                                               Zane Woolstenhulme, Superintendent, Ogden School District; also                                                representing Utah School Boards Association, Utah School                                                Superintendents Association, and Utah Association of School                                                Business Officials

Spoke against the bill:            Billy Hesterman, Utah Taxpayers Association, handout provided

                                               Ronald Mortensen

MOTION:     Rep. Cunningham moved to pass the bill out favorably. The motion passed with Rep. Greene, Rep. Knotwell, Rep. Peterson, and Rep. Stanard voting in opposition and Rep. King and Rep. McCay absent for the vote.

S.B. 201          Sales and Use Tax Exemption Revisions (Sen. H. Stephenson)

Sen. Stephenson explained the bill to the committee.

MOTION:     Rep. Greene moved to pass the bill out favorably. The motion passed unanimously with Rep. Hutchings, Rep. King, and Rep. McCay absent for the vote.

MOTION:     Rep. McKell moved to place S.B. 201 on the Consent Calendar. The motion passed unanimously with Rep. Hutchings, Rep. King, and Rep. McCay absent for the vote.

S.B. 78            School District Property Tax Amendments (Sen. H. Stephenson)

This bill was not considered.

MOTION:     Rep. Knotwell moved to adjourn the meeting. The motion passed unanimously with Rep. Hutchings, Rep. King, and Rep. McCay absent for the vote.

Vice Chair Peterson adjourned the meeting at 10:02 a.m.

Daniel McCay, Chair