Concern continues to grow as Utah HB441 is moving through the Utah legislative session. Local leaders are saying the change will have a significant effect on the local economy and that state leaders appear to be trying to push the bill through without proper consideration or input. The bill proposes a 3.1 percent sales tax on all services from lawn care and hair cuts to the drilling of oil wells. The tax would supposedly be offset by a lowering of the sales tax on goods from 4.7 to 3.1 percent and of state income taxes
from 4.9
to 4.75 percent. “The way it is currently written I have great concerns of what it will do to our economy,” shares Vernal City Manager Quinn Bennion, who spent several days reading through the bill’s 260 page document. Bennion explains that the new formula would alter the way sales taxes are distributed and when you start crunching the numbers it would result in rural citizens paying more in sales taxes with more of that money staying in Salt Lake and less money being sent back to the Basin. Vernal Chamber Director Joel Brown agrees the bill would take a major toll on the Basin, and would be very detrimental to the local oil and gas industry. As an example, drilling a directional well in Utah costs a company approximately $11.5 million dollars. This new tax would add approximately $450,000 dollars to the cost. It would then tax the many service providers on the project which cost would be passed on to the oil and gas company. Brown says it needs tabled so there is more time to look it over, analyze it, and find the best approach moving forward. It’s been decades since there was major tax reform in Utah and, in Brown’s words, it’s the bottom of the 9th in this session and now they are wanting to rush this bill through. Local leaders are urging all concerned to contact their representatives. To reach House representatives Scott Chew, Christine Watkins, and Logan Wilde, visit
house.utah.gov
. To reach Senator Ron Winterton, visit
senate.utah.gov
. The House is expected to vote on HB441 on Friday.
https://house.utah.gov/house-members/
