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Senate passes revised SB213 after hours of amendment fights over sales‑tax exemptions to balance budget

Utah State Senate · February 28, 2003
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Summary

After an extended series of floor amendments, the Senate passed second substitute SB213, a package that trims or temporarily restores several sales‑tax exemptions (including vending‑machine, video‑game, manufacturing and other items) to reduce a budget shortfall; the bill passed 17–10 and was sent to the House.

After prolonged debate and dozens of line‑by‑line amendments, the Senate approved second substitute Senate Bill 213, a revenue package that removes or reduces a set of sales‑tax exemptions the body determined could be used to help balance the state budget.

Sponsor Senator Maine framed the proposal as a set of repeals and temporary rollbacks of previously enacted exemptions that were granted when state revenues were healthy. The package targeted many small exemptions that collectively add up to millions of dollars: vending‑machine sales, certain video‑game arcade receipts, seasonal farm produce sales, newspaper sales and subscriptions, coin‑operated amusements, cable and satellite TV, and a phased reduction in the manufacturing‑machinery exemption among others.

Floor amendments altered several key items. Senator Bramble successfully moved to reinstate a narrow definition and an exemption for arcade video games and a separate amendment restored a fairness formula for vending‑machine operators in statute so operators could report a presumptive taxable amount rather than mechanically retooling machines. Senator Dimitrich and others secured an amendment protecting seasonal family farm produce sales. Senator Blackcomb secured a partial restoration for manufacturing inputs (a 75% exemption for a two‑year phase in that reduced the immediate fiscal hit in that line). Multiple other amendments were moved, debated and either adopted or defeated by division and roll call.

The debate repeatedly returned to two competing goals: raising revenue quickly to restore human‑service cuts and meet obligations, versus preserving longstanding tax preferences intended to promote economic development and support small local businesses and rural newspapers. Rural senators and supporters of small papers argued that taxing newspapers and small seasonal farm sales would disproportionately harm small communities. Proponents of the revenue measures emphasized social‑service restorations and the temporary nature of some changes.

Final vote and next step: Under suspension of the rules the Senate passed the second substitute SB213 as amended by roll call (17 yes, 10 no, 2 absent) and transmitted the bill to the House for further action.

Representative quotations: "These are not tax increases; they are repeals or delays of special interest tax breaks that we have given over years," Senator Maine said when introducing the package. "This is a modest step for two years to get us through a difficult budget period," Senator Blackcomb said in support of partial manufacturing relief.

Ending: SB213 will advance to the House as the Legislature's chief vehicle to address a fiscal shortfall; senators noted additional negotiations and conference committee work may follow.