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House votes to revert last year's aircraft parts tax change, refunds affected company
Summary
The Utah House passed HB 2,001 to undo changes from last year's HB 165 that unexpectedly expanded tax treatment of some in-state companies; sponsor said the bill will refund taxes to an affected Utah company and shifts the fiscal note from a prior negative estimate to a modest positive.
The Utah House on special session moved Wednesday to undo a prior change related to sales-tax treatment for aircraft parts and equipment, voting 68-0 to pass HB 2,001 and send it to the Senate.
Representative Brad D., the bill sponsor, told members the measure "basically negate[s] House Bill 165" from the previous session after attorneys and staff discovered that a narrowed set of NAICS codes had an unintended consequence that increased tax liability for a company already operating in Utah. "There was a company in Utah that was affected by that that would need to pay some additional taxes," the sponsor said, and the bill refunds that money to the company.
The sponsor said the fiscal note on the earlier version was roughly $100,000 negative; after narrowing the bill and removing the incentives, the current fiscal estimate is about $50,000 positive. "What we've done is taken it from $100,000 negative to $50,000 positive because we have just taken those incentives away," Representative Brad D. said.
Debate on the measure was brief and no members rose to speak against it. Voting was opened and, after members present cast their ballots, the presiding officer announced HB 2,001 had received 68 yes votes and 0 no votes. The bill was referred to the Senate for further consideration.
The House record shows the action was procedural and intended to reverse an earlier, unintended outcome of last session's language rather than to create a new incentive program; sponsors indicated they may pursue targeted incentives in a future bill if desired.
HB 2,001 will proceed to the Senate for its consideration.
