“We are not foes” — Utah lawmakers promise to repeal sales tax reform

Update 1.30.2020: Governor Gary Herbert signed H.B. 185 on January 29, repealing S.B. 2001.

The controversial income tax and sales tax reform bill enacted in Utah last month is now slated for repeal.

Governor Gary Herbert, Senate President Stuart Adams, and House Speaker Brad Wilson fought to reform Utah’s income tax and sales tax systems during the 2019 legislative session, and they succeeded in enacting Senate Bill 2001. They’ve now pledged to repeal the measure in the face of strong public opposition.

Approximately 152,000 Utahns signed a petition to repeal S.B. 2001, largely over concerns about the sales tax reform. The measure increased the state sales tax rate on groceries from 1.75% to 4.85%, broadened sales tax to digital products and numerous services, and raised taxes on gasoline and other fuels. It also reduced income tax rates and exempted menstrual products.

In announcing the full repeal of S.B. 2001, the state’s leading lawmakers said, “We are not foes on a political battlefield.” They applauded citizens who “engaged in the civic process and made their voices heard.”

And true to their word, a bill seeking to fully repeal S.B. 2001 (H.B. 185) was introduced on January 24. It’s expected to be ready for the governor’s signature by the end of this week.

Then a new effort to get Utah’s tax policy right will begin. Gov. Herbert, Adams, and Wilson underscored that “the original challenge we worked to address lies before us still. Crafting the right policy is critical to our state’s long-term success.”

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