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Senate advances corporate apportionment bill to third-reading table amid fiscal debate
Summary
First substitute H.B. 53, proposing phased-in allowance for corporations to elect single-factor (sales) apportionment to encourage firms to locate or expand in Utah, was read for a third time after debate on fiscal impacts and then tabled on third.
Senators on Feb. 24 debated first substitute House Bill 53, a tax-reform measure to change apportionment rules for corporate income tax and provide incentives for companies to locate in Utah by phasing in single‑factor (sales-only) apportionment.
Senator Bramble described the bill’s intent as encouraging business investment and jobs in Utah by allowing corporations to elect to weight sales more heavily—or ultimately use sales as the sole apportionment factor—rather than the older three‑factor formula of sales, assets and wages. He cited a multi‑year fiscal impact estimate (about $7.8 million the first year, $16 million the second year) and said the bill originated from the tax‑reform task force and had interim committee support.
The Senate recorded a third‑reading tally of 20 yes, 5 nay, 4 absent and read the bill for a third time. Sponsors then moved to table the bill on third to enable prioritization and further consideration; the motion to table carried and H.B. 53 was placed on the third‑reading table.
Floor debate emphasized economic development goals versus immediate fiscal cost to the state and the need to prioritize tax‑reform measures in the broader budget context.
