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Tax System Reboot March 1, 2019


80% Sales Tax Base % of Personal Income

70%

Sales Tax Base % of GDP

GF Tax Base Lags Economy

60% 50% 40% 30% 20%

0%

1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017

10%

Source: Governor’s Office of Planning and Budget

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GF Share of Budget Declining Share of State Budget

60%

Education (income)

50% 40% 30%

General (sales)

20%

Local (property)

10% Transp. (fuel)

0%

1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 3/4/19

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General Fund Shrinking in HED Percent Share of HED Subcommittee Appropriations 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% FY11

FY12

FY13

FY14

FY15 GF

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FY16 EF

FY17

FY18

FY19 Est

FY20 Gov


Available Revenue (in Millions)

One-time

General Fund

Ongoing $52

$178

Education Fund

$477

$392

Total

$529

$570

***$200 m to $300 m of this is ABOVE TREND***

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GF Available Revenue (in Millions) February Revenue Estimate

$230

Dec. 3, Special Session

-$235

Subtotal

-$5

Base Budget Bills

-$39

Subtotal

-$44

Medicaid Expansion (SB96)

-$20

Current General Fund Deficit

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-$64


Education Funds Going to Higher Education • 2018: $853,897,000 • 2017: $655,745,800 • 2016: $760,088,800


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Services Currently Taxed • Telecom service that originates and terminates within the boundaries of the state. • Admission or user fees for amusement for amusement, entertainment, recreation, exhibition, cultural, or athletic activities. • Services for repairs or renovations of tangible personal property. • Hotel, motel, and other short term accommodations • Laundry or dry cleaning services.


EDUCATION HELD HARMLESS HB 441 has no effect on the Education Fund. It decreases both Education Fund Revenue and Education Fund Spending Without Impacting Public Education. More importantly it stabilizes the General Fund, which will protect the education fund for the future.

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HB 441 Improves Education Funding •

Since 1996, higher education funding has increasingly come from the Education Fund.

By expanding the sales tax base, higher education funding can be moved back to the General Fund.

HB441 will not only hold public education harmless, it will enable a greater proportion of growth toward public education.

General Fund

Education Fund

Higher Ed

Higher Ed

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H.B. 441 Tax Equalization and Reduction Act Impact on Education

SALES TAX

1996

GENERAL FUND

INCOME TAX

EDUCATION FUND 100% PUBLIC EDUCATION

GENERAL GOVERNMENT

ROADS

SOCIAL SERVICES

HIGHER EDUCATION


H.B. 441 Tax Equalization and Reduction Act Impact on Education

SALES TAX

GENERAL FUND

POST-1996

INCOME TAX

EDUCATION FUND PUBLIC EDUCATION

GENERAL GOVERNMENT

ROADS

SOCIAL SERVICES


H.B. 441 Tax Equalization and Reduction Act Impact on Education

SALES TAX

GENERAL FUND

TODAY

INCOME TAX

EDUCATION FUND 78% PUBLIC EDUCATION $3.58 BILLION

22% $1.01 BILLION GENERAL GOVERNMENT

ROADS

SOCIAL SERVICES


H.B. 441 Tax Equalization and Reduction Act Impact on Education

SALES TAX

H.B. 441

EDUCATION FUND

GENERAL FUND ~$350 MILLION

GENERAL GOVERNMENT

ROADS

SOCIAL SERVICES

INCOME TAX

PUBLIC EDUCATION

This would allow: • Higher Education to be funded more from the General Fund • Leave a higher percentage of Education Fund money for Public Education


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Profile for Utah House

Tax System Reboot  

Learn why the Utah Legislature is addressing tax reform in 2019.

Tax System Reboot  

Learn why the Utah Legislature is addressing tax reform in 2019.

Profile for uthouse
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