After cutting taxes for families, veterans and elderly Utahns during the 2021 General Session, the Senate set its sights on more than a $160 million income tax cut for all Utahns. Today, the Senate passed S.B. 59 State Income Tax Rate Reduction, which reduces income tax from 4.95% to 4.85%. The bill provides relief for all taxpayers while enabling the Legislature to invest in education, transportation, public health, water and more key areas that matter to Utahns.
“Over the last few years, the Legislature implemented significant tax reductions,” said Sen. Dan McCay, sponsor of S.B. 59. “Because of conservative, fiscally sound policy, our state is in a position to reduce taxes across the board. Income tax is burdensome on Utah families and a targeted approach to giving income tax relief will benefit all Utahns.”
Since the beginning of the pandemic, the Legislature has pushed for less restrictions on businesses, creating an environment for Utah’s economy to thrive. The state’s strong economy makes it possible for the Legislature to cut taxes for the second year in a row.
“Utah is the beacon of hope and economic prosperity,” said President J. Stuart Adams. “For our state to remain competitive and keep and gain good paying jobs, it’s important to cut income tax. By doing this, we are helping ensure Utah remains a great place to live, work and raise a family.”
“We need to implement a tax policy that puts more money back into the hands of Utahns,” said Sen. Evan Vickers, majority leader. “Each and every Utah taxpayer, no matter their income, will experience a tax cut. Working families and individuals will get to decide how they spend more of their hard-earned dollars.”
The Legislature is committed to giving money back to taxpayers, while making responsible, targeted and substantial investments in Utah’s future. The Senate’s strategic approach to cutting income tax also provides a way to continue fully funding education.
“We are taking steps to reduce the burden on working Utahns while finding a balance to increase education funding,” said Sen. Ann Millner, majority whip. “This year, the Legislature plans to cut taxes for Utahns while funding education at historic levels. We are deliberately decreasing taxes at this amount and will continue to assess the budget as federal stimulus stabilizes.”
S.B. 59 passed in the Senate and will now be considered in the Utah House of Representatives.