House approves reduction in motor-home registration tax, sponsors cite competitiveness

The House passed House Bill 53 on Jan. 25 as amended, changing the tax treatment of motor homes and other personal property. Representative Sertler and sponsor Representative Shermuth described the bill as a response to constituents and dealers who said Utah’s registration fees made purchasers register vehicles out of state. The amendment reduces the uniform fee assessed on motor homes from 1.5 percent of fair market value to 1.25 percent beginning Jan. 1, 2006, and to 1.0 percent beginning Jan. 1, 2008.

Proponents argued the reduction would make Utah more competitive with states such as Oregon and Montana and could prompt increased in-state sales and sales-tax revenue. Representative Morley and others said the change may encourage purchasers to register in Utah rather than out-of-state. Representative Bigelow highlighted the fiscal note, noting that loss of revenue is treated like an expense in the budgeting process and citing an estimated funding need of $611,000 unless offsets are identified.

Opponents or cautious speakers noted there were no reliable statistics showing that sales-tax revenue would rise enough to offset the projected loss; the sponsor said there are "no numbers" proving the offset. After debate and a call of the previous question, the House recorded the bill’s passage and referred it to the Senate. The bill passed the House with the vote recorded on the floor as 72 yes and 0 no.

Next steps: the bill will be considered by the Utah Senate, including any decisions about funding the fiscal impact as part of the larger budget process.