You may, just may, get an income tax and sales tax reduction later this year.
Utah Senate and House Republicans can't decide whether the income tax deduction for federal tax paid should be raised - in effect giving an income tax break - or whether the state sales tax should be reduced.Accordingly, both taxes may end up being reduced a little, GOP leaders said Thursday.
Senators will take up Sen. K.S. Cornaby's increase in the federal deduction Friday, said Senate President Arnold Christensen, R-Sandy.
Meanwhile, the House will take up several sales tax bills. "We'll probably amend Rep. Frank Knowlton's sales tax reduction bill to cut an eighth-cent off the tax and then send that to the Senate," said House Speaker Nolan Karras, R-Roy.
"I think we have the (15) votes to pass our income tax bill. They (the House) probably have the votes to pass some kind of sales tax reduction. We'll hold their bill, they'll hold our bill and after we get our updated revenue estimates (in two weeks), we'll see just how much we can reduce taxes," Christensen said.
Republican Gov. Norm Bangerter wants a $19 million tax cut. GOP House and Senate caucuses lean towards giving that much back. "Maybe we'll end up with more than $19 million available. We might reduce the income and sales tax, if neither house can get the votes to reduce just the income or sales tax," Christensen added.
A $19 million tax cut equates to about a $25 to $30 tax reduction per household.