Utah State Legislature is Pushing for Tax on Services

utah tax law

UPDATE (3/8/2019): Yesterday the Governor and the Legislature announced that they were putting a hold on HB 441 to tax professional services so it could be studied further and receive more public input in the months to come. This is the right thing to do and to take a step back to engage in a healthy and open dialogue on the complex and very challenging issues raised in the proposed law.

We encourage all to maintain contact with your legislators as further decisions are made from now through the next special session. Here is the contact information:

Senate
Don Ipson dipson@le.utah.gov
Evan Vickers evickers@le.utah.gov

House
Travis Seegmiller tseegmiller@le.utah.gov
Bradley Last 435-817-0064
Lowry Snow vlsnow@le.utah.gov
Walt Brooks wbrooks@le.utah.gov

Here are stories on the developments:

https://kutv.com/news/local/lawmakers-plan-to-work-through-double-taxation-in-reform-bill-before-special-session

https://www.ksl.com/article/46505915/services-wont-be-taxed-at-local-level-under-latest-version-of-tax-reform-bil

Are you ready to pay TAX in Utah for SERVICES, in addition to sales tax? Currently the Utah legislature is fast-tracking a state tax reform bill that would add a tax on services and reduce sales tax and income tax. The change could result in a 3% service tax for all service providers, large or small. Teach piano? Coach or train? Are you an accountant, attorney or financial advisor? Website developer? All these service jobs would be required to pay a service tax under House Bill 441.

One major concern is that consumers will go out of state for services, and Utah businesses will lose clients and business because of the loss in competitive pricing. Another concern is that small businesses will be losing 3% of their income instead of passing it on to the customer.

How the bill has been presented is a significant concern. It was negotiated in closed-door committee and brought to the floor with only 3 weeks left in the general session. This is not adequate time for the public to become informative, voice their opinion, and properly debate the issues.

You may contact Matt Ekins at Gallian Welker & Beckstrom with questions on HB441. Also, it is urgent you contact your local representative and voice your opinion:

Senate

Don Ipson  dipson@le.utah.gov

Evan Vickers  evickers@le.utah.gov


House

Travis Seegmiller   tseegmiller@le.utah.gov

Bradley Last    435-817-0064

Lowry Snow    vlsnow@le.utah.gov

Walt Brooks  wbrooks@le.utah.gov

For more information on HB 441 you can look at these stories:

https://kutv.com/news/local/businesses-vent-but-big-utah-tax-bill-sails-through-committee

https://www.ksl.com/article/46499830/utah-state-sales-tax-rate-drops-to-31-in-tax-reform-proposal