Utahns likely won't be getting another tax cut this year.

Before the 2008 Legislature convened last month, lawmakers were talking about a $100 million property-tax cut to ease the concerns of Utahns faced with hefty tax increases last year thanks to a big boost in property values along the Wasatch Front.

But with the latest state revenue projections showing some $340 million less than expected, property-tax cuts appear to be off the table — at least those aimed at helping Utah homeowners cope with rising taxes.

"I think we all went into this session with great expectations that we could make some property-tax cuts to help soften the blow," Senate President John Valentine, R-Orem, said Wednesday. "Now we're being realistic."

There still may be some property-tax break approved to help keep Delta Air Lines from relocating its Salt Lake City International Airport hub, what Senate Majority Leader Curt Bramble, R-Provo, called an economic development measure.

Another possibility is an $18 million health insurance tax break for the self-employed that's part of health insurance reform legislation backed by Gov. Jon Huntsman Jr. But there is no large-scale general tax cut in the mix as lawmakers struggle to balance increases sought in education and other needs with slowing revenues.

Senate Majority Whip Dan Eastman, R-Bountiful, said he was concerned state tax revenues may continue to decline.

"This is probably not the time to put forward a lot of cash towards a tax reduction," Eastman said. "We're kind of putting up towards leaner times over the next maybe year to 18 months. We want to be well-prepared for the downturn."

This is an election year for many lawmakers, including all House members, making it even more difficult to give up any tax cut. House Republicans had voted in their caucus to back the cut while the Senate GOP majority said simply it generally liked the idea.

"I hope voters look at the last five years," Valentine said, referring to a series of tax cuts during the state's financially flush years that included a $220 million reduction in income and sales taxes last session. "As we had revenue increases, we increased the size of tax cuts every year."

Valentine pointed out, too, that property values are starting to drop in many areas of Utah, something that should help ease the shock when property-tax notices are mailed out later this year.

On Tuesday, Valentine said he and Curtis talked with the governor about the likelihood that there would be no property-tax relief for Utahns this year. Huntsman had not included any tax cuts in his nearly $13 billion budget proposal but had said he'd be willing to take a look at whatever lawmakers came up with this session.

"It's probably fortuitous at this time, considering the revenue estimates," the governor's spokeswoman, Lisa Roskelley, said. "We need to see the results from the tax cuts that have gone into effect."

But House Majority Leader Dave Clark, R-Santa Clara, wasn't ready to give up on a property-tax cut this session. Clark said Wednesday that House GOP leaders have not ruled out a property-tax cut and that all items are still being discussed.

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Contributing: Bob Bernick Jr.
E-mail: lisa@desnews.com