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Senate advances bill delaying sales-tax sourcing provision amid dispute over committee review
Summary
The Utah Senate voted to advance House Bill 107 to third reading after debate over whether the tax commission’s software review should go first to the Revenue & Tax interim committee or directly to legislative management to speed implementation.
The Utah Senate on Feb. 28 voted to advance House Bill 107, a measure that delays the sourcing portion of the streamlined sales tax law for one year and enables the Legislative Management Committee to move the effective date if the state certifies appropriate software.
Sponsor Senator Hilliard said the bill delays only the sourcing effective date to allow time for implementation and contains a mechanism by which the Legislative Management Committee could ask for a special session if the Tax Commission certifies that software or agreement changes justify an earlier start. "This delays that part for one more year," Hilliard said, adding the management committee could request a special session if the state certifies readiness.
Senator Bramble and several other senators pressed for a requirement that the Tax Commission’s software be reviewed first by the interim Revenue & Tax Committee, arguing that committee members have institutional knowledge from prior reviews of purportedly compliant software. Bramble said the committee has on multiple occasions reviewed software represented as compliant and found otherwise and indicated he planned to offer an amendment to require Rev & Tax review. Supporters of the bill, including Hilliard, contended routing the report directly to legislative management avoids an extra 30-day delay and better serves constituents eager to implement the change.
After debate the Senate called the question and took a roll call: House Bill 107 was ordered read for the third time after receiving 27 yes votes, 0 nays and 2 absent. The Senate recorded that amendments could be offered on third reading.
What happens next: HB 107 will be considered on third reading where senators may offer amendments that would alter the committee-reporting path or other technical details. If passed on third reading it will proceed to the House or the enrolling process as prescribed.
Sources: Floor debate and roll-call recorded on the Senate floor, Feb. 28, 2005.
