Guest opinion: Leaves are falling in Utah. What about taxes?

October 25, 2019 (Deseret News)

Autumn is not the season we usually associate with discussions of state tax policy. But with comprehensive tax reform failing to blossom last spring at the close of the general session, state legislators are working to bring reform to fruition before winter sets in.

The push for reform comes at a time of prosperity for Utah but also a time when structural challenges are becoming increasingly apparent. As the Utah Foundation revealed in its 2018 Tax Policy Series, Utah has seen the nation’s second-biggest long-term decline in taxable sales as a proportion of consumer expenditures. Meanwhile, a proliferation of earmarks and exemptions have diminished policymakers’ flexibility and revenue base as they address challenges such as the rising cost of Medicaid and the declining yield from gasoline taxes.

Efforts to bring about state sales and income tax reforms ran aground in March when the legislative session ended before a consensus could form. After rounds of subsequent public meetings and hearings, the Utah Legislature’s Tax Restructuring and Equalization Task Force in mid-October released a proposal for reform. The plan is to assemble a special session in early December to get the job done.

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