S.B. 276 Veteran Organization Amendments: transcript

Like you've, we've lost our crowd, but don't take it personally. I won't, I won't. So, uh, I just wanna say, um, uh, Terry Scowl brought me something this summer that I had no idea that was not available to our veterans organizations. And what happens is, for our veterans organiz, I mean, all of our nonprofits out there that are 5 0 1 c threes, so they're not specifically veterans or organizations. Um, they receive tax exempt benefits that our veterans organizations haven't been able to receive, uh, in terms of being tax exempt and, uh, to be able to claim sales and use tax exempts on revenue from their charitable work. So this is only for their charitable work. We do not, uh, we have not allowed that. Now, this is allowed, um, in, in other states and other places, but Utah as much as we, I mean, we've all value our veterans organizations, but we haven't provided, uh, the same accommodation to them that we provide to every other nonprofit. Um, that's a 5 0 1 C3 in the state. So what this do is open that up so that they could claim sales and tax exemptions for their charitable work, uh, and then be able to obtain donations, uh, from state agencies for administering relief programs. So, and to acquire conservation easements. And it clarifies that, um, the terms charitable non-profit, non-for-profit in ways that we needed to do in code. And so I'm gonna turn the time over to, uh, Terry Scow to make additional comments because he sees this on the ground. Great.

Thank you. Uh, Mr. Chair. Terry SC I'm with the American Legion. I serve on their National Board of directors. We have 84 American Legion Post in the state from Logan to St. George, Moab to Wendover. And I say we're doing the Lord's work looking after our veterans. We're honored to do that. Many posts will often have folks that wanna make a donation and, uh, they'll ask for their 5 0 1 C number. They don't have it, and they end up not getting a donation. So, as Senator said, many states have done this already. And this just puts us on parity so that the American Legion can receive donations. All of our folks are volunteers like me. So, uh, nothing is, uh, worse than doing well that which need not be done at all. So I'll say no more. And, and I do wanna say we did pass this by the tax commission. 'cause I assumed that that would be the organization that, um, so I'd ask the drafters to send it by the tax commission. They, I mean, obviously it's a decision, policy decision we have to make, but it's not something that they had concerns about. And with that, we're open to questions.

Move 2 76, uh, pass out of committee with a favorable recommendation.

No, I just, I, I've worked with, uh, the, our Veterans Associations a lot in my, uh, staggered career and, uh, do a lot of, they do certainly a lot of good. And I don't think we can ever show enough appreciation to our veterans.

Uh, I waive, I just think it's time we bring our state standard up to federal standard.

Waive, aye.

Motion to adjourn

Thank you very much. Um, what this bill does is say we have tax exempt veterans organizations in the state. Interesting enough, those veteran tax exempt associations, um, have, um, tax exemptions at the federal level, but they don't have sales and use tax exemptions at the state level. So we give that for all of our nonprofits for, um, charitable organizations, et cetera. But not for these veterans associations that are really focused on nonprofit activities. But they have a different number because they're veterans organizations. And what this bill is proposing is that we, um, we give these organizations the same exemptions that we give to other non-profit and charitable organizations in our state. It's not a significant amount of money. It's probably 35. It was just estimated about $35,000 a year. But it would mean a great deal to, um, our veteran organizations that they're there on a volunteer basis just to support our veterans. And with that, I'm open to questions.

Thank you, Mr. Chair. I have a question about the acquisition of a conservation easement. What, what, why is that in there? What, is there a purpose behind that?

Um, the purpose is just they'd be able to do, uh, a con conservation easement if they've got a piece of property that's part of that nonprofit Veterans Association. Is that something that happens a lot with No veterans? No, but they're modeling this after other states that have similar legislation.

Okay. Do you know if there's anyone looking at doing a conservation easement right now?

I do not. Okay. Thank you.

Uh, I would like to go ahead and move that we pass out SB 2 76 with a favorable, favorable recommendation.

Um, this is really important to some of our leaders of our veterans organizations like Terry SC and others who I, I know, you know, and they are, um, they work really hard for our veterans. They do it totally on a volunteer basis. And I think this is a small gesture. Um, we've worked with the tax commission and they're fine with it. So, um, with that, I'd just like to see us move it forward. Thank you.

Do you any, any additional comment? Oh, no, I do not. Okay.

Yeah. Thank you. I, I want one more question based on, on the, this, uh, conservation easement. So the language in here on 1520 says a government entity. Uh, it, it doesn't really have anything to do with the, the veterans, uh, organization. But can, can you explain why, why the way that's in this bill? What, why a government entity or we're saying a government entity needs to acquire a, a bill. We, we just ran a bill saying that like a, a county Yeah. Line 1520. We just ran a bill to, uh, saying that, uh, a governmental organization can, or saying limiting what county counties can do, uh, but buying up other counties. Is this have anything to do with that?

No. It just allows veteran service organizations to acquire conservation easements, which give them the same tools as other nonprofits use to preserve. So, So our, our, our land, I, I just don't see that.

What is the definition of government entity? Um, in this case, it's really meant to be these veteran services organizations. I, I just don't see how that govern Entity is like if you're a 5 0 1 C3. Right. So in, in, in the bill on line 1665, it defines local government entity as a county, city, town, special district, special service district, community development and renewal agency, cons, conservation district, school district, or another other political subdivision of the state. So that that doesn't track with what, with what the presentation is. It defines it as a government entity, as as those things. So I, I, I don't, I I feel like that's, I'd be happy to get that clarified. 'cause it really is meant to be for a Veterans Service organization, we need to clarify that before it goes to the floor.

Thank you, Chris. To legislative research and general counsel on lines 1520, the inclusion of governmental entity is moving it from lines 1522 up to 1520. That is just cleanup. Governmental entity is already in the

acquisition of conservation Easement. Got you. Thank you. Mm-hmm. Thanks. I, I'll learn how to read one of these days. Thank you.

You very much. I really appreciate that. You bet. And our veterans organizations will as well.

Senator Millner. Thank you very much Mr. President. Um, what this bill does is say we've got a number of veterans organizations, um, they aren't necessarily 5 0 1 c threes, but they are non-profit organizations that are meant to benefit our veterans. Um, our code federal code gives them all the same access to, uh, tax exemption that, uh, the other nonprofits have. But our state code does not do that. So what this debt bill does is to align us with federal code on giving them to tax exemptions that I'm open to questions?

Thank you Mr. President, uh, to help our, uh,

nonprofit status as we have for nonprofits and charitable organizations. Federal government does this, but for some reason we haven't done this at the state level. So it allows them to get sales and tax use exemptions. Um, and all of the other kind of, uh, privileges that you get if you're a nonprofit, they are totally serving in a nonprofit way. Our veterans organ, our veterans in our community. With that, I'm open to questions, Discussion to the bill.

Call the question.

Is, is it safe with so many people off the floor?

Uh, we heard this bill yesterday, um, but it got circled because the fiscal note hadn't caught up with it. Uh, what this does is to say if as a driver of a vehicle, uh, is in

of the president, Madam Arena Clerk Senate Bill 2 76 Veteran Organization Amendments by rep, Senator Millner. This bill was served in revenue and taxation with the vote 9 0 2.

Thank. Thank you Mr. Speaker Pro Te. Um, so this bill ensures that Utah's tax exempt veteran organizations receive the same benefits already available to other charitable nonprofits, recognizing the vital role they play in serving veterans and strengthening our community. This bill aligns it with the federal code and allowing these organizations to claim a sales and use tax exemption on revenue from other charitable work, helping them to stretch the amount of money that they have for veterans events and, uh, to help the veterans that they serve. And so with that, Mr. Speaker pro Tem, uh, that's my presentation.

Thank you Mr. Speaker Pro. Tim, this is just another way that we can, uh, recognize our veterans and make sure that they have the services that they need and be able to stretch their dollars. And so I appreciate your support.