DAVE & DUJANOVIC

OPINION: Don’t hold your breath on tax reform this legislative session

Jan 27, 2020, 2:10 PM | Updated: 2:19 pm

tax reform legislative session...

House Speaker Greg Hughes, R-Draper, speaks during the opening session of the legislature at the Capitol in Salt Lake City on Monday, Jan. 22, 2018. It's looking like tax reform will have to wait until a future legislative session, amid conflicts between voters, the legislature and the governor's office. Photo credit: Deseret News

This is an editorial piece. An editorial, like a news article, is based on fact but also shares opinions. The opinions expressed here are solely those of the author and are not associated with our newsroom. 

Tax reform is out and it probably won’t be coming back anytime soon.

“It was a gut punch,” said Rep. Tim Hawkes, R-Centerville. “We’ll hit the reset button and start all over again.”

Okay, but when?

What’s in the tax reform package?

S.B. 2001 has quietly made its way onto Utah’s Mount Rushmore of controversial bills — carved alongside medical marijuana, Medicaid expansion, and whatever else you’re most passionate about.

Here’s the 10th grade Cliffs Notes version of the tax reform bill that passed in December 2019 and will be repealed in January 2020.

First, I’ll start with what people thought was bad in the bill.

  1. Increasing the sales tax on unprepared foods from 1.75% to 4.85%. If you’re asking what unprepared foods are—think fresh fruits, vegetables, and meats. 
  2. Gas tax increase– roughly, a dime per gallon of gas. 
  3. Sales tax on some services—think Uber rides, but not yoga classes. I could never figure out why a business was/wasn’t taxed without looking at a very, very large list. 

Here’s the good that gets thrown out with the bad. 

  1. $160 million tax cut on your state income tax returns. The average Utah family of four could have expected to keep an extra $500 at tax time. 
  2. No tax on Social Security payments for low-income households. 
  3. Increased dependent exemption from $565 to $2,500. 

The bill was 238 pages, so these were just some of the highlights — or lowlights, depending on your point of view.

When will this come back up?

If you’re sick of tax reform talk, don’t worry. It will be a hot minute before legislators try to tackle this gorilla again.

Here’s why:

If tax reform is in Utah’s future, it won’t happen until a new governor is elected in November 2020.

None of the current candidates liked the bill.

“Since all these candidates for governor just completely opposed what we did,” said Rep. Paul Ray, R-Clearfield, “it will be nice to dump it in their lap and let them figure it out.”

Once elected, the new governor would need to make it a top priority, legislators would need to write a bill, take it on road to garner support, then pass it.

Doing some quick timeline calculations and we’re looking at two years away — at the earliest.

“We’re probably two years away from this being a serious problem,” said House Speaker Brad Wilson.

Good. At least that matches with the timeline.

Dave & Dujanovic can be heard weekdays from 9 a.m. to 11 a.m. on KSL NewsRadio. Users can find the show on the KSL NewsRadio website and app, as well as Apple Podcasts and Google Play.

Listen on Google Play Music

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Dave & Dujanovic

1040 form shown, tax refund season is here...

Sam Herrera

Should you spend or save your tax refund?

Filing your taxes can be a headache but figuring out how to spend your tax refund might be a headache in its own right.

23 hours ago

A woman in SLC was a victim of a hit-and-run on March 11....

KSL NewsRadio

S.L. County DA says driver in hit-and-run crashes stalked victims

The Salt Lake County district attorney said the driver allegedly involved in a series of hit-and-run crashes intentionally targeted his female victims

1 day ago

The icon for the video sharing TikTok app is seen on a smartphone, Feb. 28, 2023, in Marple Townshi...

Curt Gresseth

Utah mom fears loss of followers and income if TikTok sold

A Utah TikTok creator talks about what banning the app in the U.S. would do to her family's primary source of income.

6 days ago

Join KSL NewsRadio live from Salt Lake County Animal Services on March 28, 2024, from 9 a.m. to 12 ...

Emily Ashmead

Tails of Hope: KSL NewsRadio live from Salt Lake County Animal Services

This special broadcast of Dave & Dujanovic will cover what changes will be made to Utah animal shelters to accommodate the newest regulations.

7 days ago

fixer-upper...

Curt Gresseth

Can’t afford new home? Would you renovate a fixer-upper?

Is it worth the work and money to attempt to renovate a fixer-upper home? Realtor discusses pros and cons.

8 days ago

tuition...

Curt Gresseth

How to take a big bite out of tuition costs in Utah

The University of Utah, Utah State University, Southern Utah University and Salt Lake Community College are all seeking approval for tuition increases for next year. But colleges and universities in the state offer tuition benefits for employees, spouse and dependent children under 26.

9 days ago

Sponsored Articles

Mother and cute toddler child in a little fancy wooden cottage, reading a book, drinking tea and en...

Visit Bear Lake

How to find the best winter lodging in Bear Lake, Utah

Winter lodging in Bear Lake can be more limited than in the summer, but with some careful planning you can easily book your next winter trip.

Happy family in winter clothing at the ski resort, winter time, watching at mountains in front of t...

Visit Bear Lake

Ski more for less: Affordable ski resorts near Bear Lake, Utah

Plan your perfect ski getaway in Bear Lake this winter, with pristine slopes, affordable tickets, and breathtaking scenery.

front of the Butch Cassidy museum with a man in a cowboy hat standing in the doorway...

Bear Lake Convention and Visitors Bureau

Looking Back: The History of Bear Lake

The history of Bear Lake is full of fascinating stories. At over 250,000 years old, the lake has seen generations of people visit its shores.

silhouette of a family looking over a lake with a bird in the top corner flying...

Bear Lake Convention and Visitors Bureau

8 Fun Activities To Do in Bear Lake Without Getting in the Water

Bear Lake offers plenty of activities for the whole family to enjoy without having to get in the water. Catch 8 of our favorite activities.

Wellsville Mountains in the spring with a pond in the foreground...

Wasatch Property Management

Advantages of Renting Over Owning a Home

Renting allows you to enjoy luxury amenities and low maintenance without the long-term commitment and responsibilities of owning a home.

Clouds over a red rock vista in Hurricane, Utah...

Wasatch Property Management

Why Southern Utah is a Retirement Paradise

Retirement in southern Utah offers plenty of cultural and recreational opportunities. Find out all that this region has to offer.

OPINION: Don’t hold your breath on tax reform this legislative session