SALT LAKE CITY — Although at present marks the start of the 2019 Legislature, it might nonetheless be weeks before Republican lawmakers are ready to roll out details of a sweeping plan to extend sales taxes to providers that is been in the works for months.
If that sounds familiar, it is as a result of an analogous plan to broaden the gross sales tax base while decreasing the state sales tax price was a key piece of Gov. Gary Herbert’s proposed price range launched in December.
“We agree on the issue and we agree on a part of the answer, that we need to increase the base,” stated Rep. Tim Quinn, R-Heber Metropolis, vice chairman of the Home Income and Taxation Committee.
Silas Walker, Deseret News
A stone lion guards one of many entrances to the Capitol in Salt Lake Metropolis on Friday, Jan. 25, 2019.
However Quinn, who started placing collectively legislation to cope with the difficulty last spring, stated there are some differences between what he and Sen. Lincoln Fillmore, R-South Jordan, need to do and the governor’s plan.
Quinn is predicted to sponsor what may be one of the crucial impactful payments of the 45-day session with Fillmore, chairman of the Senate Revenue and Taxation Committee, serving because the Senate sponsor.
No one is ready to speak specifics, however Herbert referred to as for sufficient money to return from imposing sales tax on sufficient providers to lower the state’s current 4.7 % sales tax price to under three.9 % when mixed with a $200 million tax minimize.
Simply how much in new sales tax collections his plan would require has been estimated at between $600 million and $800 million, though those figures do not consider the $200 million his price range units aside for a sales tax price minimize.
That is coming from the state’s $1.3 billion price range surplus largely from sudden progress in revenue tax revenues. A few of that cash has already been put in so-referred to as “wet day” accounts as a hedge towards a potential financial downturn.
Leaders of the Legislature’s Republican supermajority have already stated their choice for any tax reduce can be in the state’s revenue tax price, lowered last yr from 5 % to 4.ninety five %.
They usually is probably not bought on as massive a reduction within the sales tax fee, both.
Silas Walker, Deseret News
The Capitol in Salt Lake City is pictured on Friday, Jan. 25, 2019.
“Perhaps we do decrease it a bit of bit,” Quinn stated, however he burdened there must be more sales tax income collected after what’s being referred to as tax modernization, not the same quantity because the governor’s plan would offer.
“If we start letting numbers direct policy, that’s a nasty concept. We’re not setting a target on that,” the lawmaker stated of how a lot further gross sales tax income must be raised. “We’re beginning with where we need to get to from a policy standpoint.”
Incoming House Speaker Brad Wilson, R-Kaysville, stated it is a complicated situation.
“I do agree with the governor that if we will do that, a logical place to start out is to look…