From Deseret News archives:
Walker works on tax reform
The governor appointed a group of advisers last December to help her overhaul the state's decades-old tax structure, but she has yet to finalize a plan — despite her earlier promise it would be ready by August. Her presentation Monday focused on the potential problems facing the state if changes aren't made.
"I'd be the first to agree it's not an immediate crisis, but if you look at the future over a prolonged number of years you recognize we have some serious, serious problems in terms of the structure of our taxes," Walker said.
Both Jon Huntsman Jr. and Scott Matheson Jr. said they found the information helpful, but they want to see the governor's proposal. Monday's closed-door session was their first joint meeting with the governor to discuss issues.
Matheson described what he heard as "just background information. It was helpful in terms of giving us some historical information about Utah taxes and trends and that sort of thing. I think we're both looking forward to seeing what the actual proposal is going to be."
Huntsman said he admires Walker "for identifying a need, which is tax reform, and doing her best to rally the troops to build support and put together a program, which we'll all anxiously await."
The governor's press secretary, Amanda Covington, said the presentation was the same one given last month to about 300 business leaders and lawmakers at the Capitol Complex. Legislative leaders meeting with Walker Tuesday will hear an abbreviated version.
The presentation is based on a series of computer slides, titled "Utah's Tax Portfolio," available at www.utah.gov/governor. It called property tax a "great portfolio anchor" but said the state's sales tax base is being eroded, in part by Internet purchases.
Other taxes noted in the 50-plus-page presentation included individual income tax, lauded for its "attractive growth potential" despite being a risky revenue source for education. Corporate finance tax was labeled "extremely volatile" and a "very risky" source of money for schools.
The governor acknowledged the material is difficult but said it is important to share the findings with the candidates. "It's hard to explain the situation in Utah with one-liners," she said.
Still, Walker said she doesn't expect either of them to endorse her proposal when it comes out. "My expectation is that they understand the reasons we need tax reform, not just tinkering but real tax reform — and they will continue" the reform effort, she said.
The governor issued a press release late Monday stating she was delaying the release of her plan, originally set for August, because additional time is needed to analyze the data. Walker said a future release date is yet to be set.
Lawmakers are also working on their own version of tax reform. The Individual Income Tax and Corporate Franchise and Income Tax Task Force, which met again Monday, is expected to present its recommendations to a legislative committee in November.
Also Monday, Walker said she has not decided whether to call a special session of the Legislature. The issue is likely to be raised at the governor's meeting Tuesday with legislative leaders.
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