House approves bill allowing taxation of interstate telephone service, sponsors say it protects Utah—s telecom advantage

The Utah House voted to approve Senate Bill 17, a measure that updates state sales-tax language to reflect a recent U.S. Supreme Court decision allowing states to tax interstate telephone service.

Representative Vincent Valentine explained the bill—s history on the floor: Utah—s 1930 sales-tax statute originally covered "telephone or telegraphic services" but traditionally exempted interstate calls. Following the U.S. Supreme Court—s 1989 decision in a related case, states gained authority to tax interstate telephone service; SB 17 brings Utah—s statute into alignment with that authority.

Supporters argued the change is an economic-development tool. Valentine and other proponents said other states that moved quickly to tax interstate telephone services experienced industry departures, while Utah retained telemarketing and call-center operations that brought jobs and tax revenue. Valentine pointed to a recent example of a large company establishing a telephone reservation center in Utah.

The House closed voting with a recorded result that the bill "having received 63 affirmative and no negative votes, passed this House." The bill was then publicly read by title and prepared for final processing with signatures and journal entry.

The measure passed with broad support on the floor; proponents emphasized the alignment of state law with federal precedent and potential economic benefits for Utah's telecommunications-related employers. The bill now proceeds through final administrative steps before returning to the Senate as required for enactment.