Tax cuts likely for Utahns

Lawmakers agree to meet in special session

Published: Wednesday, Sept. 6, 2006 9:22 a.m. MDT
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Every Utahn can expect to see a state income tax cut this year, albeit only around $25 or $50.

And it's very likely the state's wealthiest residents will receive a much larger income tax cut next year, amounting to hundreds and maybe even thousands of dollars.

But based on the results of closed-door caucuses by the Republican majority lawmakers Tuesday, it's less clear if Salt Lake County residents will get the ballot option of raising their own sales taxes for transit projects.

At the urging of GOP Gov. Jon Huntsman Jr., Republican legislators in the House and the Senate agreed Tuesday to a special session later this month to vote on a "dual track" personal income tax system.

House Republicans said they also wanted to consider the transit tax in the special session, but their Senate counterparts, apparently recognizing there wasn't significant support for the issue, declined to vote on adding it to the agenda.

It's up to the governor to call lawmakers into special session and set the agenda. His spokesman, Mike Mower, said Tuesday, "We still anticipate dealing with tax reform and transit in a special session. However, a final decision has not yet been reached."

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Huntsman lobbied hard in recent days for the changes to the state income tax system, calling them key to economic development. Mower said he'll continue pushing lawmakers on both the income tax cut and the transit tax increase.

"Actually," said Rep. Dave Clark, R-Santa Clara, "we didn't need much of a green light" for Huntsman to call a special session in late September.

Senate President John Valentine, R-Orem, said his caucus was less enthusiastic.

"The numbers were pretty close," Valentine said.

But if Huntsman put a tax cut before them in a special session, Senate Republicans would support it, he said. Most lawmakers face re-elections in November.

The governor had announced at the end of the 2006 Legislature that he intended to bring lawmakers back to consider a flat-rate income tax alternative. It failed in the final hours of the general session.

The sales tax increase for transit projects is another story. House GOP leaders are confident they have 50 votes (two-thirds majority) to allow a complicated ballot issue. It would raise nearly $900 million for mass transit. Senate Republicans are not confident about the votes.

The sales-tax increase in Salt Lake County would help fund TRAX light-rail extensions to Draper, South Jordan, West Valley City and Salt Lake City International Airport — and an expansion of the FrontRunner commuter rail system through the county.

The political trouble for Huntsman and GOP legislative leaders started early Tuesday. Several moderate — and even a few conservative — legislators asked embarrassing questions about the income tax reform/tax cut and transportation bonding.

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