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Senate advances sales-tax hold-harmless fix after heated debate over 15-year extension
Summary
Senators approved First Substitute House Bill 81 on second reading after extended debate about extending a 0.2% optional local tax for two cities. Supporters described the change as finality for negotiated redevelopment plans; opponents said it effectively extends a local tax and would disadvantage some retailers.
The Utah Senate on Feb. 29 debated First Substitute House Bill 81, a measure altering the phase-out of a historical 'hold harmless' sales-tax allocation and authorizing a 0.2% optional sales-and-use tax extension for two municipalities for a 15-year period.
Sponsor Senator Bramble told the body the substitute reached a negotiated settlement with the two remaining affected cities and the House sponsor to provide finality for the allocation change. He said the extension was negotiated to allow South Salt Lake and Riverdale to proceed with planned redevelopment financing, including potential RDA…
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