State tax-review group could get head start

Within weeks of concluding this year's general session, a task force could begin tackling what will likely be one of the most controversial issues facing the 2006 Legislature — tax reform.

Composed of 12 members from the Senate, House and governor's office, the Tax Reform Task Force would be authorized to begin before the typical May 1 starting date for new task forces in order for members to get right into the admittedly massive task of reforming taxes, sponsoring senator, Curtis Bramble, R-Provo, said.

Almost all forms of taxation would be studied by the task force, including property, sales and income taxes. Even corporate taxes, which the Legislature is considering phasing out starting in 2007, could be part of the discussion.

The task force would be created with SB153, which passed the Senate Revenue and Taxation Committee Tuesday. To begin as soon as the governor signs the bills, both chambers would have to approve it by two-thirds or more.

Private businesses, regular citizens and special interest groups will not be part of the task force, Bramble said, because too many participants could bog down the process. After all, everyone is a stakeholder in tax reform.

"If you ask one private group, you will have to ask another and another," he said. With that many people, the task force members "would never get their work finished."

Ideally, Bramble wanted the task force to have a reform bill ready for the 2006 general session.

The governor has made tax reform one of his top priorities as an integral part of his economic development effort. His predecessor, Gov. Olene Walker, came out with her own extensive plan for tax reform shortly before leaving office.

Her plan included extending sales tax to services as well as goods. Huntsman, too, has said he's looking at taxing services. As for income taxes, Walker proposed a flat income-tax rate for all Utahns.

The new governor hasn't stated his preference yet for dealing with individual income taxes but pushed for eliminating corporate income taxes, promising to market the phase-out for economic development purposes.

"We felt we didn't have enough time in the three weeks between the governor's inauguration and the start of the legislative session to work with all legislators and craft legislation to deal with (all of the) tax issues," Mike Mower, the governor's legislative liaison, said.