Legislature: focus on tax cuts, schools

"I'm not thinking in terms of a tax cut or I would have put it in the budget," Huntsman said. But if a tax cut "hits my table" in the form of bills "we will certainly take a look at it on the property tax side" because many Utahns are "feeling the pinch" of higher home property taxes following reappraisal in several large counties.

But House Republicans, in a closed caucus last month, found enough votes for a $100 million tax cut, while Senate Republicans, also in a closed caucus, voted to give some kind of tax cut, with no number yet attached.

Both Curtis and Senate President John Valentine, R-Orem, said they believe there will be another round of tax cuts, most likely in some adjustment to the state-mandated school property tax.

If tax cuts are coming, Jones found that 34 percent of Utahns want the sales tax on food reduced. Twenty-one percent said property taxes should be trimmed. The sales tax on unprepared food was cut to 3 percent statewide by last year's Legislature, and Curtis said lawmakers don't want to mess with it again so soon.

"We will finish the job" of removing the rest of the food tax in the next two or three years, said Huntsman, assuming the governor wins another term in November.

A number of Utah homeowners were shocked in late 2007 when they got their property tax notices. Several large counties reassessed properties last year, and many homeowners saw the recent hot housing market reflected in higher property taxes. Lawmakers are hearing the complaints

How much to cut?

Curtis, Valentine and other GOP lawmakers clearly recognized their political bases in talking tax cuts. Jones found that while 41 percent of Utahns in general want a tax cut this year, 48 percent of those who said they are Republicans said they do want their taxes cut. Only 30 percent of Democrats and 38 percent of independents want tax cuts, Jones found.

"There will be some level of tax cuts," said Curtis. "What we don't know yet is what level or which tax."

Valentine and House Minority Leader Brad King, D-Price, agree.

"I think there will be a reduction in the property tax," said Valentine. The state levies no property tax itself. However, it does require that all 40 school districts levy a basic property tax to support schools, so legislators can lower that tax levy — which would give a tax cut to all real property owners, homeowners and businesses alike.

"I think there will be tax cuts," said King, who stepped into the top House Democratic post after former minority leader Ralph Becker was elected Salt Lake City mayor in November. However, "it may not be wise (to do so), with the uncertainty of (Utah's) economy, which seems to be weakening" like other states', King said.