Maintaining a competitive tax environment and raising the necessary revenue to provide quality education are critical for continued economic growth. The Governor signed into law changes to the Utah tax code that accomplish both of these items.
During the legislative session, tax rates were reduced in several ways to offset a projected $80 million increase in state income taxes due to federal tax reform. Individual and corporate income tax rates were reduced from 5 percent to 4.95 percent. Additionally, beginning in 2019, most multi-state businesses will be phased in as single-sales-factor taxpayers. This means they will calculate their Utah corporate tax liability based on the proportion of their total sales that occur in Utah, which in the aggregate lowers business taxes.
Many Utahns are also likely see a small increase to their school property tax bills in FY 2019 and beyond. School property taxes will start to automatically increase with inflation. This will provide more funding for education. An increased, offsetting property tax credit for low-income senior citizens will be available.