Date: 07/06/2006
Final
BILL SUMMARY for HB06S-1016
HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR
| Votes: View--> | Action Taken: |
| <none> | <none> |
04:02 PM -- House Bill 06S-1016
Representative J. Kerr, prime sponsor presented House Bill 06S-1016. The bill requires that for income tax years beginning January 1, 2007, a trade or business that pays a non-employee for services and reports that payment on the Form 1099-MISC to deduct and withhold state income tax at the rate of 4.63 percent if the person performing the services fails to provide a correct taxpayer identification number (TIN). For federal income tax purposes, federal law requires a trade or business that pays at least $600 in miscellaneous income to non-employees in the course of their business (such as for services) to report the income on Form 1099-MISC.
04:06 PM -- Adrienne Benavidez, Color of Justice, stated that she is concerned because there is no way to verify the taxpayer ID number.
04:08 PM -- Ron Kirk, Legislative Council Staff, was called to testify about the taxpayer ID number. He stated that the bill builds on federal tax law.
04:15 PM -- Representative A. Kerr was called to testify because he is sponsoring a similar bill, House Bill 06S-1015. Representative Marshall opened House Bill 06S-1015 up for discussion with House Bill 06S-1016. Ron Kirk was called up to clarify the difference between the two bills.
04:27 PM
Representative Marshall requested that the sponsors of the three similar taxpayer ID bills talk with one another and laid House Bill 06S-1016 and House Bill 06S-1015 over until the end of the calendar.