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Utah House rejects bill to lock in sales-tax trigger if federal marketplace law passes
Summary
Lawmakers debated HB 2 24, a measure by Rep. Nielsen that would have set a lower state sales-tax rate to trigger if the federal Marketplace Fairness Act allowed states to collect remote sales taxes; the House rejected the bill 26–47 after extended floor debate.
Representative Todd Nielsen argued HB 2 24 would create predictability and revenue neutrality if Congress gives states authority to collect remote sales taxes, saying the measure “establishes the course” and is modeled on statutes in other states. Supporters said the bill broadens the tax base and prevents an automatic, unvoted tax increase should remote sales tax collection begin.
Opponents called the proposal premature. Representative Eliason said uncertainty about the final federal bill and its implementation makes it inappropriate to lock in a state response now: “I cannot support it,” he said, arguing the Legislature should reconvene to set implementing standards if the federal law passes. Other critics pressed concerns about committing potential new revenues before the state fully understands transportation and other budget needs.
Representative Nielsen told colleagues the bill is intended to be revenue-neutral and to protect local retailers from competitive imbalance. He highlighted economic modeling cited during debate and argued that a modest trigger could stimulate jobs and GDP growth by broadening the tax base.
After more than an hour of floor debate and questions from members on implementation and timing, the House voted. House Bill 2 24 failed, with 26 members voting in favor and 47 opposed. The clerk notified that the bill will be referred to staff for filing.
