Reduces the individual and corporate income tax rate for all Utahns from 4.95% to 4.85%. A $163.7 million reduction in taxes.
Increases the eligibility for a social security tax credit for seniors. A $15.4 million reduction in taxes.
Establishes an earned income tax credit (EITC). A $16.1 million reduction in taxes.
“Today is a good day because we have reduced taxes once again and put more money back into the hands of hard-working Utahns,” said President J. Stuart Adams. “The Legislature has worked to alleviate tax burdens and inflation growth, through a balanced, deliberative and thoughtful process. This will ensure Utah remains the best place to live, work and raise a family. After such a difficult few years, Utahns deserve this relief.”
The bill provides assistance to all taxpayers while enabling the Legislature to invest in transportation, public health, water and more key areas that matter to Utahns. Utah’s fiscally conservative policies put lawmakers in a position to cut taxes while continuing to fully fund education and social services at historic levels.
For the second year in the row, Utah has reduced taxes. These new tax cuts will provide aid to all Utahns, assist those on fixed incomes, as well as establish an EITC for low and moderate-income working families. Combined with last year’s tax cut, the Utah Legislature has reduced taxes by nearly $300 million.
“Cutting taxes just makes sense,” said Sen. Dan McCay, sponsor of S.B. 59. “We heard from numerous Utahns, especially those on fixed incomes, that inflation has increased their financial burden. These tax cuts bring needed relief to the people of Utah. This is a victory for our state.”
S.B. 59 has been signed by President Adams and will now head to Gov. Spencer Cox for consideration.