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House approves constitutional amendment to correct taxation on leased personal property after amendment fails
Summary
The House passed SJR 3 (property-tax exemption correction) after rejecting an amendment that would have excluded fee-based government operations that compete with private businesses; Representative Anderson cited his company’s $79,657.34 property-tax bill during debate.
The Utah House debated and passed SJR 3, a proposed amendment to the state constitution aimed at correcting an anomaly where local subdivisions taxed themselves on leased personal property. Representative Ivory, the House sponsor, said the measure would allow municipalities to ‘‘net out’’ taxes on leased equipment and avoid duplicative internal levies.
Representative Anderson moved an amendment to add language excluding from the exemption fee-based operations that compete with private-sector businesses, arguing such operations should not be shielded from taxation if they are effectively market competitors. Anderson said he examined his company’s property-tax bills and testified on the floor that his company paid $79,657.34 in property taxes last year and that ‘‘over 70% of the property taxes that my company pays goes to entities that use that money to turn around and compete against my company.’’
Sponsors responded that the constitutional amendment as drafted was a narrow fix and that the specific fairness issues Anderson raised would be better addressed in interim study. The amendment was debated, placed under a voice vote and ultimately failed in the recorded vote. The House then voted to pass SJR 3, 61–10. Supporters said the measure simply places the technical change on the ballot; opponents argued the amendment could have been an opportunity to address competing government enterprises.
Because SJR 3 is a proposed constitutional amendment, proponents noted that a two-thirds vote would be required to place the amendment on the ballot for voter approval — an additional procedural threshold to bear in mind as the item proceeds.
