Senate committee OKs bill to ask voters if income tax can be used for children, disabled

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SALT LAKE CITY — A Senate committee endorsed a resolution Thursday that would ask voters to amend the Utah Constitution to also use income tax revenue for services for children and people with disabilities, part of a last-minute effort by lawmakers to address tax reform before the session ends next week.

House Republicans are considering an $80 million tax cut in the state’s income tax rate, from 4.95% to 4.9% or lower, but GOP senators, who also hold a supermajority, continue to be reluctant to look at tax cuts this session because of the uncertain economic effects the new coronavirus may have on the country and the state.

“That right now may not be fiscally responsible,” Senate President Stuart Adams, R-Layton, said.

Legislative leaders had said they’d hold off on tax reform until next year after starting the 45-day session with a repeal of a package passed in a special session last December that would have cut income taxes while raising sales taxes on food, gas and some services.

But a new plan has surfaced to ease the budget imbalance resulting from income tax revenues continuing to grow much faster than sales tax collections that’s focused on expanding the use of income tax collections beyond education.

The Senate Revenue and Taxation Committee voted 6-2 to support SJR9, which was opposed by the Utah Education Association but supported by the Utah Taxpayer Association. Salt Lake Democrat Sens. Luz Robles and Gene Davis voted against the bill.

Brad Bartels, executive director of the Utah Education Association, said the resolution, which would ask voters whether to amend the constitution extending the income tax earmark to children’s services and services for people with disabilities, would be “a generational change in education funding.”

He urged committee members to study the proposal in a special session instead of addressing it in the waning days of this session.

Sen. Curt Bramble, R-Provo, shot back that the UEA didn’t want tax reform handled in a special session last year.

“When in the world do you think we ought to address this problem?” Bramble said.

“Not once has UEA come forward with constructive, practical solution to the problem,” he added.

Bartels said the chief concern is that the resolution does not define “support children and to support individuals with a disability.”

Sen. Dan McCay, R-Riverton, the sponsor of SJR9, said the proposed constitutional amendment is part of lawmakers’ “constant effort to address budgetary constraints.”

McCay said the Legislature heard loud and clear during tax reform efforts that the public wants more say in changing tax policy.

Lawmakers could have defined support for children and support for people with disabilities as “education” in state statute, thereby making the programs eligible for income tax funding, he said.

Instead, legislative leaders decided to take a constitutional amendment to the people.

This effort is about giving the public a say, McCay said.

Constitutional amendments require a two-thirds vote of the House and Senate to place the issue on the ballot in November. A majority of voters would need to approve the amendment for it to take effect.

Davis said he believes the legislation is on track for passage so it will ultimately be up to Utah voters.

“I believe the public will vote it down,” Davis said.

As the Senate Revenue and Taxation Committee met Thursday, the Utah State Board of Education debated whether to support SCR9, ultimately deciding to support the resolution by a vote of 11-4.