MINUTES OF THE

HOUSE REVENUE AND TAXATION

STANDING COMMITTEE

Room 445, State Capitol

February 24, 2016

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. Ken Ivory                                                                                                                       Rep. Brian S. King

                                                Rep. John Knotwell

                                                Rep. Mike K. McKell

                                                Rep. Douglas V. Sagers

                                                Rep. Jon E. Stanard

Staff Present:                        Leif G. Elder, Policy Analyst

                                                An Bradshaw, Secretary

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

Chair McCay called the meeting to order at 4:26 p.m.

MOTION:     Rep. Stanard moved to approve the minutes of the February 19, 2016 and February 23, 2016 meetings. The motion passed unanimously with Rep. Froerer, Rep. Hutchings, and Rep. King absent for the vote.

1st Sub. H.B. 235      Remote Transactions Parity Act (Rep. M. McKell)

Rep. McKell explained the bill to the committee with the assistance of Scott Hymas, CEO, RC Willey; Dave Davis, Utah Retail Merchants Association and Utah Food Industry Association; and Christopher Kyler, Utah Association of Realtors, all of whom spoke in support of the bill. John Valentine, Chair, State Tax Commission, answered questions from the committee. The following handouts were distributed to the committee: "H.B. 235 Bill Summary," "eFairness Legislation," and "Sales Tax Nexus Bills: Where have they been introduced so far in 2016?"

Spoke for the bill:                   Michael Parker, Salt Lake Chamber

                                                Cameron Diehl, Utah League of Cities and Towns

Spoke against the bill:            Scott Kolbach, AvantLink

                                                George Chapman, citizen

                                                Mark Griffin, Overstock.com

                                                Nate Holzapfel, MissionBelt.com

                                                Becky Vilos, Utah Sweet Savings

                                                Natalie Martins, citizen

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

1.    Page 35, Lines 1070 through 1071:        

1070of tangible personal property, a product transferred electronically, or a service.

   (c)(i) Notwithstanding Subsection (2)(b)(ii), the activities of a person that enters into an agreement with a remote seller, for a commission or other consideration, to make a referral to the remote seller for the sale of tangible personal property, products transferred electronically, or services do not trigger the presumption described in Subsection (2)(b) if the person's activities under the agreement do not result in the remote seller making $50,000 or more in sales to purchasers in the state during the 12-month period immediately preceding the current month.  

1071 {  (c)  }  (ii)  A remote seller may rebut the presumption described in Subsection (2)(b) by

The motion to amend passed unanimously.

Vice Chair Peterson assumed the chair.

MOTION:     Rep. McKell moved to pass the bill out favorably as amended.

SUBSTITUTE

MOTION:     Rep. Ivory moved to send 1st Sub. H.B. 235 to the Rules Committee. The motion failed with Rep. Greene, Rep. Ivory, and Rep. Knotwell voting in favor.

Chair McCay resumed the chair.

The underlying motion passed with Rep. Greene, Rep. Ivory, Rep. Knotwell, Rep. Stanard, and Rep. McCay voting in opposition.

S.C.R. 2          Concurrent Resolution in Support of Sales and Use Tax Transactional Equity (Sen. W. Harper)

Sen. Harper explained the resolution to the committee.

Spoke for the resolution:        Mark Griffin, Overstock.com

MOTION:     Rep. Froerer moved to pass the resolution out favorably. The motion passed unanimously with Rep. Briscoe, Rep. Knotwell, and Rep. McKell absent for the vote.

S.B. 80            Infrastructure Funding Amendments (Sen. J. S. Adams)

Sen. Adams explained the bill to the committee. Carlos Braceras, Director, Department of Transportation, and Gene Shawcroft, General Manager, Central Utah Water Conservancy District, answered questions from the committee.

Spoke to the bill:                    Abby Albrecht, Salt Lake Chamber

Spoke against the bill:            Tom Tripp, US Magnesium

                                               Billy Hesterman, Utah Taxpayers Association

                                               Mike Swenson, Utah brine shrimp industry

                                               Gabriel Lozada, citizen

                                               Zachary Frankel, Utah Rivers Council

MOTION:     Rep. Ivory moved to pass the bill out favorably. The motion passed with

                       Rep. Briscoe, Rep. Greene, Rep. Hutchings, Rep. King, and Rep. Sagers voting in                        opposition and Rep. Knotwell absent for the vote.

MOTION:     Rep. Stanard moved to adjourn. The motion passed unanimously with

                       Rep. Knotwell absent for the vote.

Chair McCay adjourned the meeting at 7:33 p.m.

Daniel McCay, Chair