SALT LAKE CITY (AP) — Utah lawmakers advanced a $193 million tax cut on Thursday in a move that parallels actions throughout the country in states flush with cash from higher-than-projected tax revenue and federal coronavirus relief dollars.
The proposal, which would lower Utah’s income tax from 4.95% to 4.85%, passed through the House on Wednesday and the Senate on Thursday. It now heads to the desk of Republican Gov. Spencer Cox, who is expected to sign it.
In addition to slashing the income tax, the proposal includes an earned income tax credit that would allow workers who make less than $57,414 to receive refunds for part of their state taxes. The threshold is the same as the federal Earned Income Tax Credit qualifying rule.
The tax cut also would allow social security beneficiaries to be refunded for the taxes they pay on their benefits.
More than 1 million taxpayers would save an average of $129 in income taxes, while about 81,000 families would receive refunds through the state earned income tax credit.
Passage of the cuts comes weeks after Senate President Stuart Adams declared 2022 the “year of the tax cut” for the second year in a row. Lawmakers’ choice to cut taxes came amid fresh revenue demands from state agencies adjusting to the Utah’s fast growing population.
Though some lawmakers initially preferred a plan that would have cut sales taxes on groceries, the package passed this week won bipartisan support for providing tax relief across income brackets.
Free News Delivery by Email
Would you like to have the day’s news stories delivered right to your inbox every evening? Enter your email below to start!