State tax reforms in 2006 and 2007

• The top income tax rate drops from 7 percent to 5 percent for most taxpayers.

• A credit of 6 percent of federal standard deductions or a taxpayer's itemized deductions, whichever is greater, replaces the actual dollar values. This credit phases out as income approaches $104,000.

• A retiree credit of 6 percent of the current deduction also phases out as income increases.

• The general sales tax rate falls from 4.75 percent to 4.65 percent, down 0.1 percent.

• The state portion of the sales tax on unprepared food falls from 4.75 percent to 1.75 percent.

• Unprepared food was removed from the local sales taxes for transit and culture.

• Salt Lake County rails and road taxes increased 0.25 percent.

• Mass transit taxes were increased 0.05 percent to compensate for the loss of food sales tax revenue.

Source: Utah Issues

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