Utahns may get tax cut

Utahns could see a tax cut in 2006, some lawmakers said Wednesday after hearing the state is expected to collect nearly $112 million more in revenues this year.

The extra money being taken in during the first 10 months of the budget year is largely coming from income taxes, according to the state Tax Commission. But no one is saying yet where any reduction in tax rates should be made.

Senate President John Valentine, R-Orem, however, was clear that he didn't want to see a taxpayer rebate. He said he had "no interest in giving a tax rebate, which is to cut a check for an end of the year surplus."

Instead, Valentine said, he has "a strong interest in looking at a tax reduction for the next year if the revenues continue to increase at this rate." He said the latest report on state finances "bodes well" for the new effort on tax reform.

The state's Tax Reform Task Force, charged with overhauling the state's entire tax structure in time for the 2006 Legislature, will look at where the tax cuts should be made, the co-chairman of the task force, Sen. Curt Bramble, R-Provo, said.

"I think there's going to be some pressure for tax cuts. And I think we will get some tax cuts," Bramble said. "We're looking at a comprehensive approach and that's got to include tax cuts. Absolutely."

But Bramble said it's too soon to say which taxes — income, property or sales — should be cut. Whatever the task force recommends, of course, would need to be approved by the Legislature.

Some leaders, though, said Wednesday it is too early to talk about tax cuts.

Gov. Jon Huntsman Jr.'s spokeswoman, Tammy Kikuchi, said despite the new figures released Wednesday, "any discussions about tax cuts are premature. These are still (revenue) estimates, which change every month.

"The final numbers, from what I'm being told, we won't know until August. The tax reform group is just getting started, so we want to give them some time." The governor has two representatives on the task force.

"This is great news," said House Speaker Greg Curtis, R-Sandy, about the surpluses. "But it is too early to make any commitments" on what lawmakers should do with the extra cash. "To make any commitments early on is not a good way to be fiscally responsible."

Democrats, a minority in the Legislature, said whatever the surplus ends up to be, it should go to a number of state needs, especially education, that are currently underfunded.

"There are unfunded needs in basic education, in math, science, in our statewide testing programs, many areas," said House Minority Leader Ralph Becker, D-Salt Lake.

Minority Whip Brad King, D-Price, said maybe the Republican majority can spend it all on roads. "But wait, that would be redundant."