- Utah lawmakers advanced SB60 on Wednesday, the first step to cutting income taxes for the sixth year in a row.
- The proposed cut would reduce tax rates from 4.5% to 4.45%, saving $45 yearly for a Utah family.
- Opponents of the bill argue funds could be better allocated amid a projected $300 million revenue loss.
SALT LAKE CITY — The Utah Legislature has taken the first step toward cutting income taxes for the sixth year in a row.
Lawmakers on the Senate Revenue and Taxation Committee voted 4-1 Wednesday to advance SB60, which would cut the state's corporate and income tax rate from 4.5% to 4.45%.
That cut is estimated to save a typical Utah family around $45 a year.
Republican leaders in the Legislature have made cutting income taxes one of their top priorities of this decade. They have reduced those taxes every year since 2021, and they are poised to do it again this year.
"We're going to try to measure twice, cut once," Senate President Stuart Adams, R-Layton, told reporters. "It is a priority, so we'll see. ... We'll know more as time goes on."
Opponents argue the money could be better spent in other ways, especially as the Legislature faces a tighter budget this year. Utah is facing a loss of $300 million in tax revenue because of the "One Big Beautiful Bill" that Congress recently passed.
"There's uncertainty," said Senate Minority Leader Luz Escamilla, D-Salt Lake City, sitting next to Adams. "I know we've been managing those $300 million, but I will say, maybe I will ask the Senate president for one year, let's take a break and relax on the cuts and see how we do next year."
Billy Hesterman, president of the Utah Taxpayers Association, spoke in favor of the new income tax cut proposal. He called lawmakers' incremental approach of cutting taxes over several years "fiscally responsible."
"Through the series of tax cuts over the past six years, an average Utah family is saving $300-$600," Hesterman told KSL. "That's real money for Utahns, and we applaud the Legislature and the governor for their previous efforts and hope they'll continue looking for ways to control spending and delivering for Utah's families and businesses."
But Provo resident Brent Hutchison said the proposed cut is too small to make a meaningful difference for families.
"Our economy is not feeling good right now," Hutchison told lawmakers. "You cannot look a person honestly in the face and say, 'I'm doing you a service by lowering your taxes,' when whole communities are struggling to find their funding because of these cuts, year after year. This is nothing new."
Separately, the Senate committee voted 3-2 to approve SB116, which would automatically reduce the income tax rate when actual revenue exceeds what was forecast.
"If it grows faster than population and inflation, then we've got room for a tax cut," said Sen. Lincoln Fillmore, R-South Jordan, the bill sponsor. "And so it sets automatic rate reductions when state revenue hits above certain targets."
Even though both income tax cut proposals moved forward, GOP legislative leaders aren't expected to finalize their tax cut plans, if any, until they receive updated revenue projections next month.
Gov. Spencer Cox did not recommend an income tax cut in his budget proposal to the Legislature. The governor previously told KSL he will get behind another income tax cut only if February's budget projections show there's room to do it.
"If there's not," he said, "then I won't be supportive."
The legislative session ends March 6.
