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Sales‑tax exemption for building materials sparks budget fears for school districts

Utah State Senate · February 24, 1994
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Summary

Senate Bill 238, proposing sales‑tax exemptions for building materials used by charitable organizations, prompted senators to warn of large local revenue losses and pushed sponsors to negotiate a targeted amendment exempting public‑education projects.

Senate Bill 238, introduced by Senator Barlow, would expand sales‑tax exemptions for building materials when used in charitable activities. Sponsors framed the change as correcting a loss of revenue vulnerability created by a recent court decision and described the projected fiscal impact as modest at the state level, while opponents said local effects could be substantial for individual school districts.

Senator Leonard Blackham warned that, as drafted, the exemption could cause significant local budget pressure:…

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