Governor pitches plan to tax more services, cut overall rate

Governor pitches plan to tax more services, cut overall rate

SALT LAKE CITY (AP) — Utah Gov. Gary Herbert is pitching his plan of adding new sales taxes while cutting the overall rate, an issue that could be contentious during the upcoming legislative session.

Herbert told the Utah Taxpayers Association on Monday that economic changes have significantly narrowed the sales tax base, and now is the time to act.

The group that pushes for lower taxes generally supports his proposal, though president Howard Stephenson says he supports an income tax cut rather than lower the sales tax rate. He says that would make the state more competitive with its neighbors.

More disagreements could emerge as specific new tax proposal emerge during the legislative session that begins Jan. 28. They could range from limousine rentals to streaming services to haircuts.