S.B. 16 Tax Credit Review Process Amendments: transcript

Senate Bill 16 is an interim, uh, revenue and taxation committee. Bill, uh, my house sponsor is Steve Ellison. I'm happy to accept questions. I'm kidding. Uh, this really, this just changes the timing from, uh, our periodic review of tax credits and tax exemptions, uh, and gives us a five year period, and also gives us the, uh, ability to, uh, you know, look at the, um, review process in a more in depth process by asking for an audit. Um, the chairs, uh, can do it, so happy to entertain other questions, uh, should the committee feel need? Okay. That concludes your presentation.

Thank you, Mr. Chair. I'd like to make a motion to pass out favorably SB 16 tax tax credit review process amendments. Would you like to speak to that Briefly? I just want to say I appreciated the conversations about this and the fact that I've had a number of conversations with staff at LFA, and I'm looking forward to the good that is going to come out of this. Thank you.

Thank you Mr. President Senate Bill 16 is a revenue and taxation interim committee bill. Uh, the purpose of the bill, uh, was taxes our income tax review schedule and instead of making, uh, instead of making, so the committee reviews the income tax credits every three years, it extends it out to five years and adds for, uh, the ability for the committee to do a deep dive into one or two committee into one or two, um, uh, tax credits as opposed to the surface level treatment that they get now. It also gives the option to, uh, to look at and, and ask for an audit, uh, on any one of these credits at any time. So with that, Mr. President, happy to yield for questions if needed.

Thank you Mr. President. I'll move that Senate Bill 16. Um, pass.

Thank you, Mr. President. I do.

Thank you President. After this bill passed in the interim committee, there was a error that was caught in the, uh, in the drafting process. A minor error. And so the, I make a motion. We, um, that we adopt, uh, first Amendment of Senate Bill 16 Tax review cross process amendments.

Thank you. Um, as you guys will all appreciate, uh, because it is a nons substantive drafting amendment, it maintains its committee bill, um, status, uh, uh, with its unanimous approval. Um, thanks to a rule change we made last year. So gratefully, uh, small amendment like that doesn't necessarily take it out of, uh, its committee drafting pro or out out of its, uh, committee favorability. Um, with that president I will remove that Senate bill 16 tax credit review process amendments pass as amended under suspension of the rules.

Representative Eliason, Uh, thank you Mr. Speaker. Uh, this was an interim, uh, bill, uh, a cleanup bill. Uh, very, very straightforward. What it does is it exempts the periodic review of one particular tax credit. That's the tax credit for taxes paid to another state. Um, we routinely review, uh, all tax credits, but it came to our attention that this is not a tax credit we're granting to try to drive economic development or a certain type of, uh, behavior. It's just if you pay tax in another state, then you shouldn't have to pay twice in Utah and vice versa. So we're simply removing that from the, uh, the routine review. It also re, uh, repeals some expired requirements and aligns the timing of the committee's review of the motor review motor fuel used in agricultural, uh, with the review of the other income tax credits. So the good news is it actually repeals more state code than it creates and it simplifies the work of the committee. That, uh, concludes my presentation. Mr. Speaker.

I will waive. Thank you. Summation has been waived.