Utah legislative leaders announce $100 million tax cut package

With his wife and children behind him, Anthony Neil discusses his family’s taxes during a press conference at the Capitol in Salt Lake City on Monday, Feb. 22, 2021, where legislative leaders announced a $100 million tax cut package. The three bills would provide help for families with children, veterans and senior citizens. | Annie Barker, Deseret News

SALT LAKE CITY — Utah legislative leaders announced Monday a package of tax relief bills that would total a roughly $100 million tax cut to certain Utahns.

The three bills would provide help for families with children, veterans and senior citizens, but not all Utahns, as legislative leaders have said an across-the-board income tax rate cut is unlikely this year.

The bills are:

• Sen. Lincoln Fillmore’s SB153, which would set aside nearly $55 million in ongoing money to restore the dependent exemption that was lost in federal tax changes in 2017 and caused a tax increase on many Utah families. In 2018, the Utah Legislature brought back a portion of the exemption, and with SB153 is seeking to restore even more of it.
• Sen. Wayne Harper’s SB11, which would use $23.8 million in ongoing money to eliminate income taxes for Utahns on military retirement pay. A previous version of the bill would have also cut social security taxes and would have cost $43.7 million, but legislators are backing the following bill to cut social security taxes.
• Rep. Walt Brooks’ HB86, which would use about $18.3 million in ongoing money to eliminate income tax on some Social Security income, targeting Utah senior citizens living on fixed incomes.

“I am excited to see money back in the hands of Utahns who need it most,” Senate President Stuart Adams, R-Layton, said in a prepared statement.

“Our state faced incredible challenges in 2020, and we met adversity head-on. Utahns’ fortitude enabled us to emerge stronger, as individuals and as a state,” Adams said. “With these tax cuts, families, veterans and seniors will have financial relief. The Legislature is committed to helping all Utahns and will continue to work tirelessly to support our communities. I believe our best days are still ahead of us.”

Adams at the beginning of this year’s legislative session said 2021 would be “the year of the tax cut.” Legislative leaders have been for weeks promising some sort of tax relief this year, with already $80 million set aside for that purpose.

Although it’s been floated as an idea, legislative leaders have said an income tax cut for all wage-earning Utahns isn’t likely, especially citing tight revenues for ongoing money.

State leaders released new revenue estimates Friday that show lawmakers have an extra $1.5 billion to spend this year. Legislative leaders said the extra revenue was thanks to Utah’s strong economic standing despite the pandemic, but they still warn there isn’t enough money to fund all requests, which have totaled nearly $2 billion for one-time projects and $400 million for ongoing proposals.

Annie Barker, Deseret News

House Speaker Brad Wilson, R-Kaysville, discusses a $100 million tax cut package during press conference at the Capitol in Salt Lake City on Monday, Feb. 22, 2021. The three bills would provide help for families with children, veterans and senior citizens.

House Speaker Brad Wilson, R-Kaysville, also endorsed the plan.

“Our goal must always be to collect the smallest amount of tax that still allows the state to provide necessary services and prepare for future needs,” Wilson said in a prepared statement.

“This year, we are able to deliver a $100 million tax cut, targeted to three groups who will most benefit from it: families, veterans and seniors,” Wilson said. “Utah’s economy is primed for expansion and putting more money in the hands of the people is an important element of our ongoing prosperity.”

This story will be updated.

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