Get breaking news alerts via email

Click here to manage your alerts
While SB27 benefits Ivory Homes, HB427 would not
Ivory Homes case » Wilcox bill would return tax policy to former status.
First Published Feb 27 2012 08:36 pm • Last Updated Feb 28 2012 07:14 am

Two dueling bills, each attempting to undo a recent Utah Supreme Court decision, are making their way through the Utah Legislature. One would benefit the state’s largest home builder, while the other would not.

The Ivory Homes Ltd. v. the Utah State Tax Commission decision, handed down last September, ruled that transactions cannot be restructured months or years after the fact to give businesses or taxpayers a better tax outcome. The 3-2 ruling also made a significant policy change, making refunds possible only in cases of tax commission error.

At a glance

What each bill would cost

SB27 » $2 million in one-time funds, including $377,000 to Ivory Homes and amounts due other entities who filed refund requests since September. The state would also forego an additional $6.7 million per year in budget revenue.

HB427 » The fiscal note had not been publicly released by the time the committee discussed the bill Monday. Wilcox received it earlier that day but said it was in error.

Join the Discussion
Post a Comment

HB427, sponsored by Rep. Ryan Wilcox, R-Ogden, received a unanimous recommendation from members of the House Revenue and Taxation Committee on Monday.

While the Wilcox bill would not allow taxpayers and businesses to renegotiate past transactions and therefore would not benefit Ivory Homes, HB427 would reverse the portion of the high court’s ruling that limits tax refunds to cases of an error on the part of the commission. Several refund requests, stalled before the commission since last fall, could be granted if this legislation passes.

At stake for Ivory Homes is $377,000, the amount of sales tax the company could have saved if tax-exempt delivery charges had been broken out separately on three years’ worth of invoices for wet concrete purchases.

SB27, a similar bill introduced weeks earlier by Sen. Howard Stephenson, R-Draper, would give Ivory Homes the $377,000 and would also allow others to restructure their deals after the fact. The statute of limitations is three years.

Bruce Johnson, chairman of the Tax Commission, previously expressed concerns about SB27 but voiced full support for HB427 on Monday.

"You can’t go back and repaper the transaction and pretend you negotiated for something you didn’t," Johnson said.


story continues below
story continues below

Twitter: @catmck

Copyright 2014 The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Top Reader Comments Read All Comments Post a Comment
Click here to read all comments   Click here to post a comment

About Reader Comments

Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.
Staying Connected
Contests and Promotions
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Access your e-Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.