Wednesday, March 6, 2019

Utah 2019 HB 441 Tax Equalization and Reduction Act

Why the big push for taxes on services? 

A more stable revenue source.

One reason that may be bad: Competition across state lines may drive businesses out of the state.

A second reason this my be bad?

This was written re: raising the food tax but I believe it also applies:
Former State Rep. Jim Nielson

"Sure, that makes things stable for state government. Downright convenient, in fact. But a boon for the government can be a bane to taxpayers."

"To have stable sales tax revenues during economic downturns means the government takes more from taxpayers in bad times, regardless of our diminished ability to pay. We're asked to keep paying, even when we can't. Which begs this question: Just who do we as lawmakers represent, the government or taxpayers?"

The Senate floor sponsor  told the Architects if the invoice was sent to a Utah owner or developer it would be taxed. So an out of state developer could hire a Utah or out of state architect with no sales tax? The instate owner or developer hires an architect (instate or out of state) and they are taxed? What is wrong with this picture?

"If we can’t get tax reform done, a year from now we’ll have to start relying on debt to pay expenses out of the general fund,” said Wilson. “We have four months to fix it.”

According to Utah Art XIII Sec 5 (1, 2 and 3) they can't do that. They have to pass a budget that works.

There is no reason the #utleg can't continue to fund higher ed partly with general funds like they have for the last 10 years and did last year. They just can't keep spending the way they are. We need to tighten our belts not tax more.

At what point are services, defined in 2019 HB 441, intangible property?

Since Art XIII Sec 5 (5) has that money go to the Education Fund, does that change HB 441 ?