SALT LAKE CITY (AP) — Utah lawmakers are proposing sweeping changes to the state’s tax system, including a reduction of the sales-tax and the addition of new taxes on services ranging from haircuts to legal work.
The Desert News reports that details released to reporters Tuesday show real estate, health care and tuition are the only services left largely untouched by the plan meant to bolster a shrinking sales-tax base.
The measure backed by Republican leadership would lower the sales tax rate from 4.7 percent to 3.1 percent and reduce income taxes. Even with new taxes on services, lawmakers say the average resident would save money.
Republican House Majority Whip Mike Schultz says he expects to see a lot of lobbying pushing back the new taxes, but he says lawmakers are resolute.
