Utah Legislature: Utahns favor cuts, increasing some taxes

SALT LAKE CITY — Utahns want lawmakers to balance a $700 million budget shortfall by both cutting state programs and raising taxes or fees, a new Deseret News/KSL-TV poll shows.

And Utahns greatly favor raising the tobacco and alcohol taxes, finds the survey conducted by Dan Jones & Associates.

Eighty percent of Utahns favor increasing both those taxes, Jones found.

House Majority Leader Kevin Garn, R-Layton, says "when the Senate is ready" he believes a bill now before the House that would increase tobacco taxes will be passed. He doesn't see any alcohol tax increase coming. An increase in state-controlled alcohol "is not in the mix" of revenue enhancements the majority Republicans are considering, he said.

Jones found that 57 percent of Utahns favor balancing the budget with a combination of tax/fee increases and program cuts. Twenty-four percent said just cut state budgets by an additional 5 percent or more. Twelve percent said only raise taxes, Jones found in a survey conducted last week.

Sen. Lyle Hillyard, R-Logan, the Senate budget chairman, said as senators see the serious impacts of only cutting budgets to balance the budget, there will be "both cuts and tax increases, although it will be more cuts than increases."

Hillyard says he personally favors a tobacco tax hike and thinks the Senate will ultimately go along with that.

The new poll shows that residents don't want increases in some other taxes mentioned on Capitol Hill. Seventy-six oppose raising the state income taxes; 79 percent oppose raising the gasoline tax; and 58 percent oppose raising the sales tax on unprepared food.

Garn says GOP lawmakers have none of those options on the table, and they won't be considered this session.

Utahns were split on whether to increase the severance tax on coal and natural gas — 41 percent favor increasing that tax, 43 percent oppose, Jones found.

There will be no tax hike on coal and natural gas, either, Garn said.

Lawmakers must adopt a balanced budget of around $11.5 billion for 2010-11 before they adjourn March 11.

Unfortunately, recent updated revenue estimates for next fiscal year, which starts July 1, show an additional $50 million shortfall in tax collections.