SALT LAKE CITY — A major bill on taxes is closer to reality — but it wasn't without some last-minute drama.
House and Senate Republicans, who have been in lockstep on a tax cut bill, found themselves in disagreement over a provision of House Bill 54 that deals with licensing fees. When that happens, the legislature forms what's called a "conference committee," made up of Republican and Democratic members of both chambers.
FOX 13 News was in the room when they met and worked out a deal, removing the provision on license plates.
The new bill:
- Cuts the income tax rate from 4.85% to 4.65%
- Cuts Social Security income tax up to $75,000
- Expands the Earned Income Tax Credit (EITC) to 20%
- Removes the state portion of the sales tax on food, contingent upon voters approving a proposed constitutional amendment on the earmark for education on the income tax
The bill is waiting final approval in the legislature. Senate Joint Resolution 10, the proposed constitutional amendment, is also awaiting action in the final hours of the legislature.
Even if it all passes, negotiations with education groups will continue. Senate Majority Whip Ann Millner, R-Ogden, said they will keep talking.
"We are still talking and I hope that we can get it done," she told reporters on Thursday.
On Thursday, proposed language was inserted into SJR10 that would preserve the earmark, create a funding formula for public education and allow the state to dip in to the income tax to fund budget volatility as needed.
"UEA is waiting to take a position on the substitute version of SJR10. If it passes out of the legislature, we will seek member input during our annual delegate assembly in April," said UEA spokesperson Hailey Higgins in an email. "Our goal has always been to ensure education funding in Utah is prioritized, protected and adequate through constitutional language and guarantees."
