Gov. Cox signs $193 million tax cut bill
SALT LAKE CITY — Gov. Spencer Cox on Friday signed the $193 million tax cut bill that cleared the Utah Legislature a day earlier.
In a statement issued after lawmakers gave final approval, Cox said he was especially pleased that the legislation included Utah’s first earned income tax credit.
“As a freshman legislator nine years ago, I supported an earned income tax credit to benefit low- and moderate-income Utahns,” Cox said. “Every year since I have worked to get the EITC signed into law. I could not be more excited to finally get this piece of legislation across the finish line.”
Cox’s statement went on to say that he also welcomed the increased eligibility for Utah’s Social Security tax credit for seniors and that he applauded lawmakers for the bipartisan effort.
“Altogether, these tax cuts will return hard-earned money to Utah families and alleviate current inflationary pressures,” the statement said.
In addition to the new earned income tax credit and expanded Social Security credit, SB59 also cuts the state’s individual and corporate income tax rate from 4.95% to 4.85%.
“An estimated 1,160,820 Utah individual income tax filers may see tax savings of $129 on average in tax year 2022,” said the bill’s fiscal note.
When it comes to the Social Security tax credit, the analysis estimated that more than 71,000 Utahns would save an average of $210.
The new earned income tax credit “may result in tax savings of $194 on average for an estimated 81,764 individuals,” according to the fiscal note.
“It will be 15% of the federal Earned Income Tax Credit,” said Susan Speirs, the CEO of the Utah Association of Certified Public Accountants. “If you qualify for the federal Earned Income Tax Credit, you’re going to qualify for the Utah state Earned Income Tax Credit.”
Speirs said the tax cut package includes something for everybody and is targeted to help lower-income families.
“Typically when you talk tax policy it tends to, and the end of the day, really help those higher-income people so it is nice that we are reaching out and really trying to do something to help our lower-income families,” Speirs said.
The bill is retroactive to the beginning of this year.
“So when you file your income taxes in 2023 you will see the impact of these new changes go into effect,” Speirs said.
The actual amount Utahns will save will vary, the note said, based on factors like filing status, family size, and income.
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