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House deadlocks on single-sales apportionment; H.B. 53 fails after tie vote
Summary
After extended debate over shifting corporate apportionment to a single-sales factor and the potential education-fund impact, H.B. 53 failed on the floor after the final vote resulted in a 37-37 tie.
H.B. 53, a proposal to let corporate taxpayers elect a single-sales factor to apportion business income to Utah, failed on the House floor after extended debate about fiscal impact and the constitutional earmarking of income tax for education.
Representative Wayne Harper, sponsor, said changing apportionment to a single-sales factor would help Utah—s in-state producers and exporters and make the state more competitive. Floor opponents, including Representatives Shurtleff, Mascaro, McGee, and others, focused on the fiscal consequence to the Uniform School Fund, citing a fiscal note estimating roughly $13 million revenue loss in the first (partial) year and about $31 million thereafter if many taxpayers elected the change.
Several members raised constitutional questions and the public compact that income tax revenues support public education; others said the measure was part of a broader package developed by the tax-reform task force, and the body should consider options together.
After a previously-called question cut off debate, Representative Harper completed summation but a final recorded vote on the bill resulted in a tie: 37 yes and 37 no. Under House rules a tie fails, and H.B. 53 did not pass the House that day.
