House Revenue & Taxation Committee
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Transcript
Bills discussed (5)
| Bill | Title | Sponsor | Status |
|---|---|---|---|
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HB1281
· 3 mentions in transcript, chapter
Matched: “…I believe we're passing over as well. and that brings us to HB 1281 representative Shepard you're recognized”
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Pre-2017 bill | ||
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HB1039
· 1 mention in transcript
Matched: “…er HV one two nine six I don't see representative Perry and HB 1039 has a member's own amendment so we've completed our work fo…”
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Pre-2017 bill | ||
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HB1218
· 1 mention in transcript
Matched: “Bill 1206. I don't see Representative Lowry. House Bill 1218. I think Representative Gene is going to let us pass over t…”
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Pre-2017 bill | ||
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HB1234
· 1 mention in transcript
Matched: “…epresentative Gene is going to let us pass over that today. HB 1234, we're passing over. HB 1240, pass over. It's a shell bill.…”
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Pre-2017 bill | ||
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HB1240
· 1 mention in transcript
Matched: “…o let us pass over that today. HB 1234, we're passing over. HB 1240, pass over. It's a shell bill. 1266, I believe we're passin…”
|
Pre-2017 bill |
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Bill 1206. I don't see Representative Lowry. House Bill 1218. I think Representative Gene is going to let us pass over that today. HB 1234, we're passing over. HB 1240, pass over. It's a shell bill. 1266, I believe we're passing over as well. and that brings us to HB 1281 representative Shepard you're recognized
Representative Matthew J. Shepherd
Unverified
0:32
to present your bill thank you mr. chairman and with the chairman's permission I'd like to ask mr. Steve Cousins who's the vice president general manager of Lion oil company to join me at the table if that's permitted
mr. Cousins you we are welcome to join them at
Steve Cousins
Unverified
0:54
the table just please state your name and in your position into the microphone for the record
Speaker 8
0:59
my name is Steve Cousins and I'm the vice president general manager of Lionel company
Representative Matthew J. Shepherd
Unverified
1:08
thank you mr. chairman members House bill 1281 is I'd consider it some cleanup legislation that is really a I think it's fair to say it's only of particular interest to really one business in Arkansas that being line oil company as you may know in Arkansas there are only two oil refineries both of which are located in Union County one is the line oil refinery in El Dorado a
number of years ago there were exemptions put in place that exempted sales and use tax related to machinery machinery and equipment that was required by state law regulations to be installed and utilized in plants and facilities to prevent or reduce air or water pollution or contamination that's generally a paraphrase of what the law has been line of course as a refinery has a number of items of machinery and equipment that are certainly related to
minimizing environmental impacts and I'm without getting into the technical details and I'll turn it over to mr. Cousins in a second to let him shed additional light onto it some of that equipment relates to removing sulfur from gasoline and thus minimizing the environmental impacts once the product leaves the refinery and is actually put into a consumer's vehicle there is for a number of years and I think this might correct me if I'm wrong but I think for
a number of years 20 or 30 years there has never been any real issue with regard to those items related to the removal of sulfur being exempt from sales and use tax however within the last two or three years it appears DFNA has taken a position that some of those items may in fact be subject to the tax and so that's what brought us to the point of bringing this bill is basically to, as I view it, to kind of maintain the status quo. We've worked with DF&A, and I appreciate their input in trying to craft language that is narrowly tailored,
I think it's fair to say, but that I believe is good legislation. It helps to maintain the status quo. And, again, it is really of I think it only really affects one particular business, and that being Lion Oil, and with the Chair's permission, if Mr. Cousins has any additional remarks to explain the situation, I would certainly welcome those. Mr. Cousins,
you're recognized to comment. Thank you.
Speaker 11
3:55
Lion is a 90-year company in Arkansas. We've got 600 employees. We have great jobs, we think. Mr. Cousins,
can you speak a little closer to
Speaker 8
4:06
the mic, please? I apologize. We provide union jobs in Arkansas that pay over $30 an hour. We also hire a lot of Arkansas engineers, accountants, all kinds. We have people from every field working there. Most of us are career. I've been there 35 years, and I'm by far not the oldest employee there.
and as far as this bill why I'm here and why we've got this bill before you for the last 19 years the FNA interpreted the environmental exemption that's been in the bill or been in tax code since the 70s to include basically all the environmental equipment at the plant near the end of the last session in an audit reinterpreting the same language they came to the conclusion that almost
half of our environmental equipment didn't comply because it was controlling pollution from cars driving around Arkansas roads instead of from smokestacks inside the line or refinery fence we didn't agree but our only option after we did not prevail with administrative law judge was to was to was to try to put a bill in that would clarify the language that for Lion oil that the historic interpretation of what's environmental and what's not would
maintain the way that always meant and that's really simply what the bill does it doesn't impact any of the money that we've traditionally always paid on use tax and just keeps things the way they've been
if if you're finished representative Shepard then we'll open the floor to questions from the representatives on the committee are there any questions
representative Hutchinson you're recognized thank you thank you mr. chair I see exempt entity water associations and all that well why is that in there I mean if it only fix the oil and gas I mean we're gay to her my own the wrong bill no for some reason I got on the wrong bill yeah I apologize I apologize I apologize but still this this cannot there's no other industry in
Arkansas that uses any particular type of equipment like this
Speaker 22
6:44
well I guess let me speak to that briefly certainly the the bill is drafted is it it's
Representative Matthew J. Shepherd
Unverified
6:51
not as if it is specifies this only applies to oil refineries or line oil company based on line oils research and mr. Cousins can speak to this they've attempted to locate are there any other businesses that are similarly situated and to their knowledge and based on their research there are no others the other refinery
and I'll let mr. Cousins speak to what it does it does not utilize equipment to remove sulfur for the purpose of minimizing the environmental impact outside of the fence line of the facility but mr. Cousins could speak to his research and and what line is attempted to ascertain as to whether there are any other facilities out there well certainly
Speaker 8
7:37
there are many facilities that avail themselves of this exemption since the 70s just like Lion
Oil does and they have traditionally had those costs exempt and they would continue to be exempt we're the only company that DF&A has changed the interpretation on for us for part of our equipment everybody else's environmental equipment is is controlling fence line emissions ours controls both fence line emissions and your car and truck emissions and so that makes us different the Clean Air Act only regulates motor fuels and it doesn't do that to other people's products so the wording clarification
only applies to us but everybody else that qualified for the exemption will still qualify nobody else that didn't qualify would start qualifying and we would not get any additional exemptions than what we've always got when when you
talk a motor fuel via fuel I mean natural gas is it because could it fit in this now
Speaker 8
8:35
I checked with the natural gas people on their treating facilities in Arkansas and they're not covered that way thank you
Speaker 27
8:45
all right are there any more questions from the committee seeing none
is there anyone in the audience that desires to speak for against this bill all right seeing none I'm sorry representative house thank you mr. chairman I'm sorry to pose
Representative Douglas House
Unverified
9:10
my question now after you'd closed but I had some confusion which in light of what you said which bill we wrong why why in your bill do you add cities and towns entitled to this exemption I believe this
Representative Matthew J. Shepherd
Unverified
9:27
I believe that language came from dfna and I they might be able to speak to the reason I assumed it was just kind of
Speaker 32
9:43
some cleanup language mr. chairman reps in house members the committee represent Shepard is correct in currently you have the same pollution control exemption in both the sales tax law and in the use tax law the language in the use tax law for years has
mentioned pollution from the operation of the city or town that same language was not in the sales tax law but for many years DFA's interpreted that city and town language that the General Assembly intended that to apply to both sales and use tax since this language was being amended BLR staff actually included that language to make sure the sales and use tax was consistent and DFA has no disagreement with that BLR change because that is consistent with our
interpretation and administration of the law follow-up
Representative Douglas House
Unverified
10:34
question does your and thank you for coming up from Eldorado testifying today does your financial impact statement reflect cities and towns as well or just Lionel no so the impact does not reflect cities and towns since that's no
Speaker 32
10:49
change in the law okay thank you thank you mr. Jeremy all right are there any more questions they wouldn't
want to speak for against the bill all right I'd like to
Speaker 36
11:17
represent recognize representative Lee for a motion I heard
I heard a motion of do pass representative Kerr seconds the motion all in favor say aye any
opposed the ayes have it congratulations
Representative Shepard you've passed your bill thank you mr. chairman thank you members all right HV one two eight five representative Lee we're gonna pass over HV one two nine six I don't see representative Perry and HB 1039 has a member's own amendment so we've completed our work for today thank you everybody and we'll see you on Tuesday can I have a motion for adjournment we're adjourned
Agenda
HB1281
Documents
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Speakers
Representative Charlie Collins Chair
Unverified
Representative Matthew J. Shepherd
Unverified
Steve Cousins
Unverified
Speaker 8
Speaker 11
Representative John K. Hutchison Chair
Unverified
Speaker 22
Speaker 27
Representative Douglas House
Unverified
Speaker 32
Speaker 36