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Senate advances plan to tax out‑of‑state municipal bond interest; lengthy floor debate over fairness, market effects

Utah State Senate · January 28, 1991
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Substitute S.B. 35, which would subject interest on out‑of‑state municipal bonds to Utah income tax for residents (with grandfathering for bonds purchased before July 1, 1991), advanced to third reading after a 20‑8 recorded vote following extended debate about market impact and tax fairness.

The Utah Senate advanced a measure to limit a tax preference for out‑of‑state municipal bond interest, sending substitute S.B. 35 to the third reading calendar after a recorded vote.

Senator Lyle Hilliard, sponsor of the bill, described it as a fairness initiative aimed at preserving revenue for the Uniform School Fund and bringing Utah in line with other states. He told the chamber he retained the federal exemption and included a…

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