Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Tax Policy topic
No spam. Unsubscribe anytime.
House approves sales-tax exemption aimed at bolstering manufacturing jobs
Summary
The House passed HB 180 to change sales‑and‑use tax treatment for certain manufacturing equipment, a move proponents said would boost competitiveness and create jobs though fiscal notes projected revenue losses for state and local governments.
Representative Wilson presented House Bill 180 to amend sales‑and‑use taxation for manufacturers by exempting certain equipment from input taxation where equipment has a useful life shorter than three years. The sponsor said the change would align Utah with other states, attract and retain manufacturers and stimulate high‑wage job growth.
Opponents, including Representative Briscoe, cited the fiscal note and warned of large near‑term revenue losses; Briscoe said the fiscal note projected a $34 million reduction to the general fund in FY2017 and larger net losses across the biennium, and expressed concern about shrinking general‑fund capacity amid other revenue pressures. Supporters, including Representatives Caro, Fossing and others, argued the tax change could produce long‑term jobs growth and increase income‑tax revenue over time; the sponsor cited a dynamic fiscal analysis estimating nearly 2,800 jobs and $619 million in wage gains over five years.
The House debated the policy tradeoffs — short‑term revenue impact versus long‑term economic growth — and ultimately approved HB 180 on the floor by recorded vote (64 yes, 9 no). The bill will go to the Senate for consideration.
