Utah may raise taxes on cigarettes by $1.31 per pack

Published: Friday, June 5, 2009 10:54 p.m. MDT
 |  E-MAIL | PRINT | FONT + - 

Groundwork is being laid for a state tobacco tax hike next year, but with a gubernatorial race now set for 2010, any tax increases coming out of the next Utah Legislature are questionable.

"We're looking at tobacco, maybe alcohol" tax increases, House Speaker Dave Clark, R-Santa Clara, told Deseret News.

With the conservative, GOP-dominated Legislature, any tax increase is always considered a last resort, he said.

Lt. Gov. Gary Herbert, who will become governor later this summer, said it is too early to talk about any "revenue enhancements" for 2010, regardless of politics.

Still, state officials could see another $700 million hole for the 2010-11 budget, to be adopted next March by the Legislature, taking effect July 1, 2010. That big number must be closed somehow because Utah by law has to have a balanced budget.

"We have a leaner budget today" after cutting state spending by more than seven percent in the recently completed session, said Clark. "And we still have our Rainy Day Fund of $414 million."

But to keep the state's AAA bond rating, all of the state reserves can't be spent, he added. And Utah still has billions of dollars to spend in freeway construction coming, and so must get good borrowing rates for those road bonds.

Story continues below

The federal government's stimulus funds for Utah have also been figured in to those dismal budget figures. "And we are not going to lay off 2,000 teachers" and other state workers, added Clark.

So some targeted tax increases will be part of the discussion, state leaders say.

Clark said Gov. Jon Huntsman Jr., while playing a key role in budget negotiations, basically punted some of the most difficult budget decisions to legislators last session.

"The politics of budgeting is very interesting," said Clark. Huntsman told us "you are on your own" in setting the budget by not calling lawmakers into a special session last December. "That was clearly a political move."

When Huntsman is confirmed as U.S. ambassador to China and resigns as governor, Herbert will move up to the top post and put together a recommended budget in December for next year.

Will Herbert recommend the tough choices that need to be made? After all, Herbert will have to face fiscal conservative GOP delegates in his re-election effort next spring. Or will Herbert leave the unpleasant cuts or tax increases to the Legislature?

"I hope that politics doesn't get in the way of making correct decisions, regardless of an election year," said Herbert, reached in Washington, D.C., where he is attending meetings.

Recent comments

This is just plain socialism.

I don't smoke, but... | June 8, 2009 at 11:36 a.m.

The purpose, the only purpose of taxes should be to raise money to...

WatchDog | June 6, 2009 at 3:46 p.m.

This isn't a "sin" tax, it is a tax on stupidity. It is stupid to...

Stupid Tax | June 6, 2009 at 3:05 p.m.

previousnext

Latest comments

ATK to cut 800 jobs

Glad I left ATK eight years ago. It was not easy to break into medical...

First regarding 'Shunned Member' - we do not have all of the facts only what...

Pitta doesn't win award

Will Pitta be the first TE drafted by the NFL? Last year's Biletnikoff...

Good one, Chuck!

I'm sure that the local authorities do keep tabs on the boards to not only...

When my furnace goes out, I'm going to stoke up the wood stove. When money is...

Jazz manage a magical win

The Jazz showed last night that they could be better than the 10th best team...

Letters: Liberal because LDS

To amazing... Why did God make murderers the way they are? Why did God allow...

High school wrestling preview

Do you ever have a full team? Every time I see a posting on any site it's one...

What frame of mind can express the thought "Even Dr. Phil...", and argue for...

Advertisements