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House approves change to 'hold harmless' sales-tax phase-out after debate over resort communities

Utah House of Representatives · March 1, 2006
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Summary

The Utah House on March 1 approved amendments to local-option sales-tax distribution, raising the threshold hold-harmless cities must meet from 70% to 90% and rejecting a substitute that would have barred resort-tax communities from also receiving hold-harmless payments; the amended bill passed 63–10.

The Utah House of Representatives on March 1 amended and passed First Substitute Senate Bill 35, a measure that changes how cities receive local-option sales-tax distributions under an existing ’hold harmless’ arrangement. Representative Adams, the bill sponsor, said the bill "allows for a phase out of that hold harmless" statute and preserves a transition for affected cities.

The debate focused on two proposed changes. Representative Harper moved to substitute a figure in the bill, deleting 0.70 and inserting 0.90 as the threshold for hold-harmless eligibility. Representative Urquhart offered a substitute amendment that…

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