Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Tax Policy topic
No spam. Unsubscribe anytime.
Senate rejects amendment to Nucor tax break; House Bill 74 passes after debate
Summary
Senators debated extending a sales-and-use tax exemption for Nucor Steel, with sponsors stressing jobs and local investment and critics arguing the company is profitable and does not need the break. A floor amendment to sunset the exemption and redirect funds to disability waiting lists failed; HB74 passed 20-6 with three absent.
House Bill 74, a measure to extend a sales-and-use tax exemption for steel-industry equipment through 2014 and to continue other tax provisions, drew an extended floor debate on Feb. 27, 2004.
Senator Knudson framed the bill around Nucor Steel's economic footprint in Utah, citing payroll and local employment figures: "In Plymouth, Utah, where the Nucor facility is located, there are 378 employees... The average take home pay of an employee at Nucor is $68,000." He argued the company has been a strong corporate citizen, providing scholarships and community support, and that a limited tax exemption would help the firm remain competitive amid industry pressures.
Senator Maine (floor) offered amendment #3 to sunset the exemption and include intent language directing the revenue to waiting lists for people with disabilities. Maine questioned whether a $150,000 annual exemption was justified given Nucor's reported profitability and urged a fairer tax base for the state.
Senator Knudson and others opposed the amendment; Senator Bramble emphasized the need to preserve local industrial employers and cited the consequences of plant closures elsewhere. On roll call, the amendment failed and the Senate later passed HB74 (20 ayes, 6 nays, 3 absent). The bill will be signed in open session and returned to the House for the speaker's signature.
The floor debate cited several specific figures for context (payroll, scholarship totals, and reported company profits) and included compromise language considered on the floor. Senators on both sides said they weighed jobs and corporate responsibility against the need for state revenues for social programs.
