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MINUTES OF THE
SENATE REVENUE AND TAXATION STANDING COMMITTEE MEETING
THURSDAY, JANUARY 25, 2007, 9:00A.M.
ROOM W130, WEST OFFICE BUILDING, STATE CAPITOL COMPLEX



Members Present:    Sen. Wayne L. Niederhauser, Chair     Sen. Mike Dmitrich     Sen. Brent Goodfellow
    Sen. Jon J. Greiner
    Sen. Howard A. Stephenson
    Sen. Michael G. Waddoups

Members Excused:    Sen. Curtis S. Bramble
    Pres. John Valentine

Staff Present:    Bryant Howe, Assistant Director, Office of Legislative Research and General Counsel
    Karen Allred, Committee Secretary
    
Public Speakers Present:    Jim Olsen, President, Utah Food Industry Association
    Pam Hendrickson, Chair, Utah State Tax Commission

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

Chair Niederhauser called the meeting to order at 9:05 a.m.
    
Approval of Minutes

    MOTION: Sen.Greiner moved to approve the minutes of January 23, 2007.

    The motion passed unanimously with Sen. Dmitrich absent for the vote.

1.    S.B. 145 Multi-channel Video or Audio Service Tax - County or Municipality     Franchise Fee Tax Credit (W. Niederhauser)     
    Sen. Niederhauser explained the bill.

     MOTION: Sen. Goodfellow moved to pass S.B. 145 out of Committee with a favorable     recommendation.
    
    The motion passed unanimously.

2.    H.B. 27 Sales and Use Tax Modifications (B. Ferry)

    Rep. Ferry introduced the bill and the following amendments were distributed:

1.    Page 2, Lines 33 through 37 :    

             33          .    modifies an appropriation to the State Tax Commission to provide that
{   ,   }        :

        .  
in addition

             34      to other purposes allowed in the appropriation language, monies may be expended
             35      to reimburse certain
{   sellers   }        business locations       for expenditures to pay for in-house programming to

             36      account for sales under the reduced sales and use tax rate imposed on food and food
             37      ingredients; and
          .    the deadline for a business location to submit a request for reimbursement to the State Tax Commission is extended from before January 1, 2007, to before April 1, 2007; and      


2.    Page 2, Lines 41 through 42 :    

             41      Other Special Clauses:
             42          This bill provides an
  immediate       effective date and provides for retrospective operation.


3.    Page 64, Lines 1953 through 1954 :    

             1953          (C) submits a request for reimbursement to the State Tax Commission postmarked
             1954      before
{   January   }        April       1, 2007;


4.    Page 64, Lines 1976 through 1977 :    

             1976          (C) submits a request for reimbursement to the State Tax Commission postmarked
             1977      before
{   January   }        April       1, 2007;


5.    Page 65, Lines 1999 through 2000 :    

             1999          (C) submits a request for reimbursement to the State Tax Commission postmarked
             2000      before
{   January   }        April       1, 2007;


6.    Page 66, Lines 2022 through 2034 :    

             2022          Section 9. Effective date -- Retrospective operation.
             2023          
{   (1) Except as provided in Subsection (2), if   }        If       approved by two-thirds

of all the members


             2024      elected to each house, this bill:
             2025          
{   (a)   }        (1)       takes effect upon approval by the governor, or the day following the constitutional

             2026      time limit of Utah Constitution Article VII, Section 8, without the governor's signature, or in
             2027      the case of a veto, the date of veto override; and
             2028          
{   (b)   }        (2)       has retrospective operation to January 1, 2007.

             2029          
{   (2) If approved by two-thirds of all the members elected to each house, the

             2030      amendments to Section 8 of this bill, which is the Uncodified Section 3, Chapter 9, Laws of
             2031      Utah 2006, Third Special Session, which amends Uncodified Section 5, Chapter 282, Laws of
             2032      Utah 2006, take effect upon approval by the governor, or the day following the constitutional
             2033      time limit of Utah Constitution Article VII, Section 8, without the governor's signature, or in
             2034      the case of a veto, the date of veto override.   }
    
     MOTION: Sen. Stephenson moved to adopt the amendments to H.B. 27.     
    The motion passed unanimously.

    Rep. Ferry further clarified the bill.

    Those speaking in support of the bill:

        Jim Olsen, President, Utah Food Industry Association      Pam Hendrickson, Chair, Utah State Tax Commission

     MOTION: Sen. Wadoups moved to pass H.B. 27, as amended, out of Committee with a     favorable recommendation.     
    The motion passed unanimously with Sen. Stephenson absent for the vote.

3.    H.B. 33 Sales and Use Tax Exemptions for Vehicles, Boats, Boat Trailers, or     Outboard Motors Not Registered in the State (P. Painter)

    Rep. Painter explained the bill and declared a conflict of interest.

     MOTION: Sen. Goodfellow moved to pass H.B. 33 out of Committee with a favorable     recommendation.

    The motion passed unanimously with Sen. Dmitrich absent for the vote.

4.    H.B. 37 Cigarette and Tobacco Tax and Licensing Amendments (C. Frank)

    Rep. Frank explained the bill and a handout was distributed.

    Pam Hendrickson, Chair, Utah State Tax Commission, spoke in support of the bill.

     MOTION: Sen. Goodfellow moved to pass H.B. 37 out of Committee with a favorable     recommendation.
    
    The motion passed unanimously with Sen. Stephenson absent for the vote.

5.    H.B. 42 Sales and Use Tax Exemption for Authorized Carriers (W. Harper)

    Rep. Harper explained the bill.

     MOTION: Sen. Dmitrich moved to pass H.B. 42 out of Committee with a favorable     recommendation.
    
    The motion passed unanimously.
    
     MOTION: Sen. Waddoups moved to adjourn.

    The motion passed unanimously at 4:45 p.m.




        
_            _____________________________________
            Sen. Wayne L. Niederhauser, Committee Chair