Utah Leaders Postponing Sweeping Tax Reform After Backlash
Mar 7, 2019, 4:47 PM | Updated: Jun 8, 2022, 5:14 pm
SALT LAKE CITY (AP) — Utah leaders are postponing a plan to make sweeping changes to the state’s tax system, including a reduction of the sales-tax rate and the addition of new taxes on services ranging from haircuts to legal work.
After the plan drew a backlash from small businesses and others, Gov. Gary Herbert announced Thursday that lawmakers will study the complicated issue over the coming months and likely return in a special session.
Herbert says it’s still essential to bolster a sales-tax base that’s shrinking as people spend more money on services. Lawmakers are planning to introduce a tax-rate cut along with the new taxes on services when a plan is finalized.
Republican House speaker Brad Wilson says lawmakers plan to meet with people across the state as they study the issue.