Senate pulls back bill to waive investment tax

A bill that would have given a tax exemption to all capital gains was pulled back from a committee hearing because of its high cost to the state.

Sen. Curtis Bramble, R-Provo, said Wednesday that SB195 was an attempt to encourage investment in businesses and increase employment. However, because of its $125 million fiscal note for the coming fiscal year and $130 million for the next fiscal year, he was going to try to scale it back.

Bramble said this exemption was a follow-up to a bill passed a few years ago that granted a tax exemption to anyone who invested their capital gains into Utah businesses. However, "it has not been utilized very well," so he wanted to expand it.

"I'd like to do something to encourage investment in Utah companies and increase employment in the state," Bramble said. "But it needs to have a more reasonable fiscal note."