Mutliple tax breaks pass committee but may not go further

With Utah state government facing a $1 billion shortfall in tax revenues, now may not be the best time to start new programs that require funding.

That was the implied message Monday morning to several "worthy" bills that, all together, would cost the state $10 million.

The bills advanced out of a House committee. But their chances of actually passing are another matter.

Rep. John Dougall, R-Highland, wants to give a non-refundable personal income tax credit of up to 5 percent of one's tax liability if the money goes into a higher-education savings account. But such a program would cost the state public and higher-education fund $2.2 million next year and $3.9 million the year after.

Rep. Steve Mascaro, R-West Jordan, wants to give retired veterans up to a $500 personal income tax credit. But that would cost the state $7 million a year.

And Rep. Gage Froerer, R-Huntsville, wants to increase the current senior, low-income Circuit Breaker program to include a few more worthy, poor seniors. His bill would give a $50 property-tax cut or rent aid.

That would only cost $122,000 a year to the state, but it would cost local governments (that levy property taxes) $650,000.

Dougall received several complaints about HB35 before the House Revenue and Taxation Committee sent it on for floor debate.

It would only apply to public universities, not to Brigham Young University, Westminster College or other private schools.

And, said Royce Van Tassell of the Utah Taxpayers Association, such state aid should be "targeted" for tuition help only in majors the state deems needy, like math, science, technology and engineering.

That led committee chairman Rep. Todd Kiser, R-Sandy, to wonder how a parent or grandparent who started a higher-education savings plan when the youngster was born would know that he or she would major in a state-approved university.

Of course he wouldn't, said Van Tassell. But HB35 also would apply to a current college student paying for his own tuition, and he could be guided to a much-needed degree.