From Deseret News archives:

Some taxes could jump

Huntsman's plan would hurt those with big debts

Published: Thursday, Oct. 13, 2005 9:09 a.m. MDT
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The task force also advanced approximately a dozen other measures, all of which will be subject to testimony during their upcoming public hearings. They include:

• A food tax credit of $75, which would be made available to lower-income people even if they do not pay any state income tax, was approved by the task force and will be one of the many related tax reform bills considered during the upcoming legislative session.

• A tax credit for cable companies that are required to pay a 5 percent franchise fee to cities may also be a bill next session after the task force approved it. Cable companies contend they need it because satellite television services are exempted from the fees.

• The task force will further review and take public comment on a proposal to exempt purchases of equipment for businesses, which could carry a price tag of more than $500 million, depending on the types of equipment exempted. Proponents of the exemption argue that it encourages investment of business infrastructure, which increases jobs and improves the economy.

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• Setting a statewide sales tax rate will also be further considered by the task force. Proposed by co-chairman Rep. Wayne Harper, R-West Jordan, the tax rate would be 6.35 percent and would eliminate most boutique taxes. Local governments and school districts would be able to recoup those losses, however, through disbursements from the state and through increased property taxes. Voters would also be allowed to approve boutique taxes, such as those which fund transit, recreation or open space, through an increase in property taxes.


Tax Reform Task Force public hearings

Oct. 19, 5:30 p.m., W135, West Office Building, State Capitol

Oct. 25, noon, Western Park, 300 E. 200 South, Vernal

Oct. 25, 6 p.m., County Commission chambers, 120 E. Main, Price

Oct. 26, 6 p.m., Dixon Middle School, 750 W. 200 North, Provo

Oct. 27, noon, Cedar City chambers, Old Post Office, 10 N. Main, Cedar City

Oct. 27, 6 p.m., County Commission chambers, 197 E. Tabernacle St., St. George


E-mail: bbjr@desnews.com; jloftin@desnews.com

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