[{"_1":2,"_112":-5,"_113":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88,100],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6183003,"mediaKeyId","5100782-374df52d5c0a0d3f78952244e00ef0da","parentId",5100782,"title","Tax Commission, DHHS: Utah e‑cigarette registry implementation slowed by lawsuit; $120,000 in registry fees collected","audioSeconds",485,"startMs",4841000,"endMs",5326000,"viewUrl","/Search/View?dp=1&key=5100782-374df52d5c0a0d3f78952244e00ef0da&start=4841&end=5326","thumbnailUrl","https://assets.pipeline.soar.com/5100782-374df52d5c0a0d3f78952244e00ef0da/thumbnail_4841000.jpg","articleUrl","/articles/6183003/Utah/Tax-Commission-DHHS-Utah-ecigarette-registry-implementation-slowed-by-lawsuit-120000-in-registry-fees-collected","mediaUrl","https://secure.pipeline.soar.com/6183003-92bc12076178e2a90b19f9606603b54c/orig.mp4?Expires=1770897006&Signature=ODtCVHz4fgjpT7FwZ6saTUPX5TLoMGgIYAuyXPUngLHMqWORj~f9ISQFIMNRWTCjINcmwyU9JWBWJGJpKEYgzAvCfW1R50wRyAqvS4jB9b3TlxU8uUWiOFsxx4JIQkg6h5br3I-h0x45pWNP8qbBLGcFVfddrPyse6RRexLmeCkr22-CH2tgnFbwNxNXnKxMCLHi-2XN7LKdfw20zydbg4CVd1krOpK5AS1ZFyp5re~Jl0b45TjFWSvyIgxyDeX2nN4PrkiDDnd64K~QTvpBxAjJl4dB6fIEMfz9H~uucBKpUYJYsYazt1cgdRuKgBdF5pv3egrzXZ-SbckTKnWwQw__&Key-Pair-Id=KUT5TJCACFTXG","author","Utah Legislature","date","2025-06-18T00:00:00Z","article","The Utah State Tax Commission and the Department of Health and Human Services told the Revenue and Taxation Interim Committee on June 18 that the electronic cigarette product registry created by 2024 legislation had a slow restart after litigation and currently accounts for approximately $120,000 in registration‑fee revenue.

Jason Gardner, deputy executive director of the Utah State Tax Commission, described the registry process: manufacturers submit an application and a $1,000 application fee to the tax commission; the commission transmits the application to DHHS for public‑health review (including verification of PMTA status), and DHHS returns a determination the commission posts on the public registry. \"We simply accept all the information and transmit it over to Department of Health and Human Services who their experts then review that information,\" Gardner said.

Implementation was interrupted by a lawsuit filed in December 2024 by the Utah Vapor Business Association that prompted a temporary restraining order on enforcement and product registration; the restraining order was lifted in March 2025 and registration resumed, but commission staff said product submissions have been slower since. The commission has maintained two public lists: certified products and recently removed products so retailers can check compliance.

Financial and enforcement points presented to the committee included:

- Registration fees collected since launch: about $120,000 (application fee $1,000 per product/manufacturer submission).
- E‑cigarette excise tax revenue: commission projection about $8,000,000 for fiscal year 2025 (first‑quarter receipts suggested a year‑over‑year drop in early quarters, roughly 30% in one quarter compared to year earlier).
- Implementation expenditures: the tax commission reported approximately $65,000 spent on registry setup (partly exceeding initial fiscal note; remainder covered internally); DHHS reported approximately $200,000 appropriated and used largely for staff and legal costs related to implementation and litigation.
- Enforcement seizures: the State Bureau of Investigation and local partners reported 22 retail investigations with 10 search warrants and more than 12,000 products seized during enforcement activity described by DHHS.

DHHS staff and tax commission staff recommended several clarifications for statute and rulemaking, including whether device components should be registered separately (removing devices would reduce fee revenue), clearer treatment of products such as CBD or \"wellness vapes\" that do not qualify for FDA premarket pathways, potential waste‑disposal fees for confiscated products, and additional permit or retail‑training requirements. DHHS also identified challenges distinguishing menthol versus mint flavors on product labels.

Both agencies said the registry is an interagency effort that has required operational adjustments, and they offered to continue coordinating with local health departments, law enforcement and retailers to improve compliance and clarify statutory language.","mediaType","Video","parentTitle","Revenue and Taxation Interim Committee - June 18, 2025","oneSentenceSummary","Tax commission and DHHS staff told the Revenue and Taxation Interim Committee on June 18 that Utah's e‑cigarette product registry resumed after litigation, has collected about $120,000 in product‑registration fees and that e‑cigarette excise revenue is projected near $8 million for FY2025.","taxTitle","2025 Utah Legislature, Utah Legislature, Utah Legislative Branch, Utah","taxId",78171,"location","Utah","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6183007,"Committee opens bill file after legal warning; reviews credits including sheltered‑workshop, capital‑gains and EITC",391,3270000,3661000,"/Search/View?dp=1&key=5100782-374df52d5c0a0d3f78952244e00ef0da&start=3270&end=3661","https://assets.pipeline.soar.com/5100782-374df52d5c0a0d3f78952244e00ef0da/thumbnail_3270000.jpg","/articles/6183007/Utah/Committee-opens-bill-file-after-legal-warning-reviews-credits-including-shelteredworkshop-capitalgains-and-EITC","https://secure.pipeline.soar.com/6183007-c79bfb9e8f3742883f812eef0e63d09e/orig.mp4?Expires=1770897006&Signature=f-qRBfjR8K0brSKrqU~oIK6l3rRj9jCAHWXhU-3DEQrV56I1o7vfoDQsYv98CITgBAKr67DCH~VewMe~Bd3NZsyo~ZqkiAxDJZngwBLnosaK3e~N-DFp~GeYMZTYUuNzrslsvwmLpa3f3nmu40mIEwyiDrnsRaeR-aREjFDkmEXEqPkSUVQKYO2iqyMH5KMY5c3kQovs0I2phVt-63~aejILWer3Z016AWXIVv62WiHToLynS6Kef8MEX3ZbBmPvqOR61B7sO1SlaU2to0JsMeFZtqhYO~qXrvfu~Sg4oY7evZRloHzs79ewwl-NLf6TghMWIgcobpvFpZ9OL9BvNA__&Key-Pair-Id=KUT5TJCACFTXG","The committee reviewed four individual income‑tax credits as part of its statutory five‑year review cycle and took one formal step: it voted to open a committee bill file to remove the \"tax paid to another state\" credit from the committee's review process.

Gus Harb, associate general counsel at the Utah State Tax Commission, warned the committee that restricting or reducing the credit would likely violate the U.S. Constitution's Commerce Clause as interpreted by the U.S. Supreme Court. Harb cited the court's 2015 decision examining Maryland's two‑pronged tax system and said Utah's full‑credit approach is consistent with that ruling. \"Any sort of limitation... less than the full credit amount for taxes paid in another state would likely be found to violate the Commerce Clause,\" he said.

Representative Steve Shepherd moved to open a committee bill file to remove the tax‑paid‑to‑another‑state credit from the review process; the motion passed with vocal 'ayes' and senators on the line confirming their votes. No recorded no votes were announced.

Other credits reviewed (high‑level):

- Sheltered workshop donation credit: Individuals, estates or trusts receive a nonrefundable credit equal to 50% of cash contributions to qualifying nonprofit sheltered‑workshop facilities, capped at $200 per taxpayer. The tax commission reported steady but low usage (roughly 80–100 claimants recently) and recurring errors caused by donors listing nonqualified facilities. The $200 cap has not been indexed to inflation since enactment in 1982.

- Capital gains reinvestment credit: Taxpayers who take at least 70% of gross proceeds from a capital gain transaction and within one year invest them in qualifying stock of a Utah small business corporation may claim a nonrefundable credit equal to Utah's income tax rate (4.5%) times the capital gain amount. The tax commission said the credit is self‑reported, legally complex and sees errors when claimants purchase stock that does not meet the statutory definition.

- Utah earned income tax credit (EITC): The state credit equals 20% of the federal EITC claimed by eligible filers and is nonrefundable. The credit is new enough that the commission has limited error data and usage history; the presenters said it remains to be seen whether it is meeting objectives.

Committee staff reminded members that SB 43 (passed in the prior session) lengthened the review cycle for credits from three to five years and left an avenue to refer any credit to the Legislative Auditor General for deeper review. No referral to the auditor general was made at this meeting beyond opening the bill file for the tax‑paid‑to‑another‑state credit.","The Revenue and Taxation Interim Committee on June 18 voted to open a committee bill file to remove the \"taxes paid to another state\" credit from its automatic review, after tax commission counsel warned limiting that credit could raise Commerce Clause problems.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6183012,"Gardner Policy Institute outlines revenue 'trade‑offs' and Utah tax volatility",834,900000,1734000,"/Search/View?dp=1&key=5100782-374df52d5c0a0d3f78952244e00ef0da&start=900&end=1734","https://assets.pipeline.soar.com/5100782-374df52d5c0a0d3f78952244e00ef0da/thumbnail_900000.jpg","/articles/6183012/Utah/Gardner-Policy-Institute-outlines-revenue-tradeoffs-and-Utah-tax-volatility","https://secure.pipeline.soar.com/6183012-efeeaefd4e15ef0b86139bd6e7b3dd73/orig.mp4?Expires=1770897006&Signature=Cq0r06URBfkccAGo4d-EfLqL5OsvXbJAK7l0i0Kr037yoqP2~fddOaZY~rtlk1B~bf5Hyy-9Qt8446-DJtv3JIDXrkNxscwLSqdC-rusgnhrbCYxyoZrTZ8ArMlamH7I-7sckHz0PdHhFhCZWqA-jKeDlPNKLo3m4cn06K9v5y8WC0Kk1RD7mHHM7-bSYGs4KqCfMKOTaJc0-0B~ZxkL8pqKUKGXXwm4XoplwDLacZ~Gd77121SGqDJp~63qTmNuiZA4J0D8FEEaadTK~mnBsW1wlq99TkB1iVL0bybAdM~aOfHn01vi9KxrUoG617cMlESye2mBe~7Z4lLCAa1-sA__&Key-Pair-Id=KUT5TJCACFTXG","Phil Dean, chief economist at the Gardner Policy Institute, briefed the Revenue and Taxation Interim Committee on June 18 on tax‑policy principles and the volatility of Utah's major revenue sources.

\"Fundamentally, taxes exist to fund public services that you... at the state level select for the state,\" Dean said, framing revenue sufficiency as a primary constraint for lawmakers. He described trade‑offs among five principles: revenue sufficiency, efficiency, fairness, administration/compliance and accountability.

Using long‑run data, Dean contrasted low‑volatility bases such as wages and retirement income with highly volatile sources such as capital gains and business income. \"Different revenue streams vary in their underlying economic volatility,\" he said, adding that property tax is relatively stable \"because of the nature of property itself\" and Utah's truth‑in‑taxation system.

The presentation showed that three taxes — state/local sales tax, individual and corporate income tax, and property tax — account for roughly 90% of state and local tax revenue in Utah. Dean and colleague Maddie Orritt emphasized diversification: taxing different economic \"ways people interact\" (income, consumption, and stock/property) spreads risk and improves predictability for budgeting.

The economists also summarized long‑term trends: individual income tax has shown the strongest growth but also significant volatility; corporate income tax had fast growth with substantial year‑to‑year swings; sales tax is less volatile than income tax but more so than property; motor fuel and registration revenues have declined in real per‑capita terms. Dean recommended that policymakers weigh trade‑offs — for example, taxing wages provides steadier revenue but shifts burden toward low‑ and middle‑income earners, while taxing capital gains may be fairer but much less predictable.

Committee members asked for more detailed data and the presenters said further publications and datasets are forthcoming; staff noted the information is intended to inform legislators as they consider tax‑portfolio changes, not to prescribe a specific policy mix.","The Gardner Policy Institute presented principles of taxation and data on revenue volatility to the Revenue and Taxation Interim Committee on June 18, highlighting trade‑offs among revenue sufficiency, efficiency, fairness and the benefits of a diversified tax portfolio.",{"_33":101,"_35":36,"_37":38,"_39":102,"_41":103,"_43":104,"_45":105,"_47":106,"_49":107,"_51":108,"_53":109,"_55":56,"_57":58,"_59":110,"_61":62,"_63":64,"_65":111,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6183017,"Report: Utah tax and benefit rules produce marriage \"penalties,\" but state can change thresholds",87,71000,158000,"/Search/View?dp=1&key=5100782-374df52d5c0a0d3f78952244e00ef0da&start=71&end=158","https://assets.pipeline.soar.com/5100782-374df52d5c0a0d3f78952244e00ef0da/thumbnail_71000.jpg","/articles/6183017/Utah/Report-Utah-tax-and-benefit-rules-produce-marriage-penalties-but-state-can-change-thresholds","https://secure.pipeline.soar.com/6183017-1c2acc74debf55f782c5c87804b9b143/orig.mp4?Expires=1770897006&Signature=VeyeNhtYdNDf2HpHCP1QuBbNWqi7aCpwYvJVLDDCysbc10EAsGuguWBhQcuuFyjTIexXRZ0XTcFItWt67acjHlCK5H-q4vh02gfSJ~ss9bvBVXSVk8ADx97mi85uPUKNhSXhLc5pKFZR0z~ebzutW-69pC5yjmlga34fueplH9k~0k4SyUJfwmXc4CPwQEJD8DUEZHRWKgp8AoP9zjHsHvWqoUI4OZ6TB0vH9f63KcO67uMcSierv5Yt-4sgetlaz9vlCdRQaTJ0v1Yec7FENlSvgLp1o4J8QmmjgdpiUixppz7VpcYSx3NNs8ZsFXQ27hIe~1ZxKBOUwN0NKis3SA__&Key-Pair-Id=KUT5TJCACFTXG","Economists from the Kempsey Gardner Policy Institute told the Revenue and Taxation Interim Committee on June 18 that several Utah tax and benefit rules create so‑called \"marriage penalties,\" meaning benefit amounts or income thresholds for married filers do not scale proportionally from single filers.

The findings matter because marriage penalties can affect eligibility for state-administered benefits and state income‑tax credits. \"A marriage penalty occurs... in a tax provision or a benefit program where the benefit amount or the income threshold for married filers does not exactly double the benefit amount or the income threshold for single filers,\" said Maddie Orritt, senior public finance economist at the Kempsey Gardner Policy Institute.

The institute identified three ways marriage penalties show up in state law: direct single-to‑married penalties; head‑of‑household to married penalties; and household‑composition effects when eligibility is tied to household income. Orritt used Utah's earned income tax credit (EITC) as an example: the state EITC is 20% of the federal EITC and, for families with children, the credit plateaus and phases out at income thresholds that do not scale proportionally across household types. Orritt noted that for a head‑of‑household filer with one child the EITC phases out at about $23,000, while the married‑filing‑joint threshold is about $30,000, creating a potential penalty for marriage.

The economists emphasized nuance: \"This is very nuanced... even in cases where we are gonna get into the details on certain marriage penalties, there may be cases where a certain filer may not experience a penalty even though most filers would,\" Orritt said. They also noted that marriage bonuses exist in some parts of the tax code and can offset penalties for some households.

Where the state can act: the presenters said most state tax provisions that produce marriage penalties are written in state statute and therefore could be changed by legislative action (for example, adjusting income phase‑out thresholds or credit formulas). By contrast, many public‑benefit programs administered with federal rules—such as programs tied to the federal poverty guidelines—are not under state control and generate household‑composition effects the state cannot unilaterally fix.

Committee members raised real‑world examples of the stakes. Representative Jon Ward described a case he knows where a disabled man receives home services through Medicaid and could lose those services if he marries because his spouse's income would push household income above Medicaid eligibility. \"If they marry, he will lose it... their option is to just not get married if he is gonna retain that benefit,\" Ward said, underscoring how marriage‑eligibility interactions can affect personal decisions about household formation.

The presenters pointed to federal context: the Tax Cuts and Jobs Act of 2017 reduced many federal marriage penalties by equalizing brackets, and those provisions were scheduled to expire in 2025; at the time of the presentation the U.S. House and Senate had competing proposals that could extend or alter federal rules. The economists also noted federal proposals such as the Family Security Act 2 (introduced in the U.S. Senate) that would eliminate the head‑of‑household filing status and expand child tax credits as a possible workaround to some marriage‑status disparities.

The institute published a full report in April and provided a QR code at the committee meeting; presenters said the report includes the statutory list of tax provisions analyzed and tables indicating where state discretion exists to alter thresholds or benefit levels. The committee did not take formal action on the report during this hearing.","Economists from the Kempsey Gardner Policy Institute told the Utah Revenue and Taxation Interim Committee on June 18 that several Utah tax credits and benefit eligibility rules produce marriage penalties or household-composition penalties; most can be changed by statute, though many federal benefit rules are fixed.","actionData","errors"]

Article not found

Tax Commission, DHHS: Utah e‑cigarette registry implementation slowed by lawsuit; $120,000 in registry fees collected

Committee opens bill file after legal warning; reviews credits including sheltered‑workshop, capital‑gains and EITC

Gardner Policy Institute outlines revenue 'trade‑offs' and Utah tax volatility

Report: Utah tax and benefit rules produce marriage "penalties," but state can change thresholds