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House passes controversial utility franchise/energy tax substitute after lengthy debate over exemptions and study
Summary
First substitute House Bill 461, a tax-law amendment with energy/utility franchise provisions, passed the House after extended debate over exemptions for coal/coke in steelmaking, a 250-dekatherm exemption affecting hospitals and higher education, and the scope of an interim study; the final House tally was 56–14.
After extended floor debate on Feb. 27, the Utah House passed first substitute House Bill 461, a tax-law amendment that would change how certain energy sources are taxed at the municipal/utility franchise level. Representative Fox, sponsor of the substitute, said the bill is intended to 'level the playing field' by closing loopholes that have allowed some out‑of‑state or large suppliers to avoid utility franchise tax, with the bill’s effective date delayed to July 1997.
The floor debate centered on several amendment packages presented on pink sheets. Key points in debate included:
- Coal and coke exemption for steelmaking: Representatives…
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