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Senate advances bill to adopt single‑sales‑factor apportionment for corporate tax; fiscal note cited
Summary
Senate Bill 59 would shift corporate income tax apportionment to a mandatory single‑sales‑factor; sponsors said it is intended to attract jobs, while supporters and critics disputed the size and impact of a fiscal note (a $12 million net reduction was cited on the floor).
Senator Stevenson presented Senate Bill 59, which would require a single‑sales‑factor apportionment for corporate income tax in Utah. Stevenson said studies by the Tax Review Commission and interim committees show the change would help attract and retain high‑paying jobs by favoring businesses that locate payroll and property in the state while selling outside Utah.
During floor debate, Senator Hilliard noted that the fiscal note was initially unavailable online but a staffer (Tom Young) later told him the fiscal impact would be a $12,000,000 net tax reduction. "So many most taxpayers will be seeing a reduction," Stevenson said, while acknowledging some out‑of‑state companies with little in‑state presence could see an increase; supporters argued the net effect is a tax cut and an incentive to locate jobs in Utah.
Senator Naderhauser, speaking in support, urged further work with fiscal analysts to refine the estimate and argued the change mirrors policy decisions in other states. The sponsor moved to adopt a technical floor amendment; the amendment was adopted, the bill was read for a third time, and a roll‑call vote placed it on the third‑reading calendar.
Lawmakers said the fiscal note required further attention during the session. If enacted, the change would alter how multistate corporations compute Utah taxable income and could affect state revenue collections and business location decisions.
