Legislators pull plug on massive sales tax bill, but will bring it back in Spring special session

Legislative leaders and Gov. Gary Herbert pulled the plug on a sweeping overhaul of Utah's tax code that would have placed sales taxes on hundreds of services while lowering the overall sales tax rate. Lawmakers will deal with the issue in a special session later this Spring.

HB441 from Rep. Tim Quinn, R-Heber, attempted to broaden Utah's tax base by imposing sales taxes on billions of dollars worth of services in order to shore up the declining tax base in the state. At the same time, the bill would drop the sales tax rate and give a big income tax cut in order to shift spending on higher education out of the Education Fund and into the General Fund. The overall effect would be a lower income and sales tax rate while freeing up more Education Fund money for public education. At the same time, the bill would boost sales tax revenue, which is a more stable source of state money.

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