SENATE BILL REPORT

SB 5167

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Background: In the course of on-going statutory enactment and amendment, technical errors may develop in the tax code. For example, legislation frequently includes statutory references to link new laws or amendments to existing definitions or related statutory provisions. If changes are subsequently made to these statutes, the references may become incorrect. Also, when statutes include provisions tied to expiration dates, they may later become obsolete for purposes of any statutory references. Further, instances may arise when statutory sections have been amended more than once during a legislative session, each without reference to the other; when these amendments cannot be merged, double amendments result.

Summary of Bill: A subsection reference is added to the service and other activities business and occupation (B&O) tax rate to clarify that the tax rate does not apply to any activity taxed under the international services B&O rate.

The word "common" is deleted from the definition of "affiliated" in the B&O tax provision providing an exemption of amounts received by a financial institution from an affiliated person. This change makes the definitions related to affiliated entities consistent throughout the excise tax code.

References and definitions in the Food Stamp Program are updated in the sales and use tax chapters to reflect current law.

In the Property Tax Relief Program for Low-Income Seniors and Disabled Persons, two changes are made: (1) eligibility requirements for disabled veterans are modified to reflect federal definitions of service connected disability; and a section requiring notice to taxpayers is changed to reflect less frequent program participant renewal filing, which was changed in 2010 from six to four years.

Part II of the bill updates statutory references due to legislative enactment from the 2010 regular legislative session.

Part III codifies a single version of statutes relating to aluminum smelters with multiple amendments that could not be merged as a result of legislation enacted in the 2010 regular legislative session and the 2010 first special session. It also combines multiple amendments to the annual survey provisions.

Part IV combines two statutory provisions relating to the subpoena of tax records, documents, or testimony.