Governor Herbert and Legislative leadership announced Thursday morning that the recent tax bill passed in December’s special session (SB 2001) will be repealed.
In a joint statement, the Governor, House Speaker Brad Wilson, R-Kaysville, and Senate President Stuart Adams, R-Layton, explained that the bill must be repealed so the Legislature can craft a state budget without the threat of having to redo the budget after the people vote on the bill in November.
Following passage of the bill, a referendum effort has taken place to put the bill on the November 2020 ballot for the people to either approve or repeal from state law. More than 115,000 signatures were needed to place the bill on the ballot, as well as a certain number of signatures coming from 15 of Utah’s 29 counties, and it appears that those supporting the referendum have obtained enough signatures to put the bill before the people. Rather than wait for the people to vote on the legislation, Herbert, Wilson, and Adams have determined it is best to repeal the bill now and move forward.
The statement explained that legislation to repeal SB 2001 will be introduced on the first day of the 2020 legislative session, next Monday, and is expected to pass both chambers and be on the Governor’s desk for his signature by the end of next week.
“The original challenge we worked to address lies before us still,” said the leaders in the released statement. “Crafting the right policy is critical to our state’s long-term success. Utah has never shrunk from a challenge and, working together, we will chart the right path forward. We will take time to reset and address this issue in the future in a way that allows all Utahns to fully understand the challenge we face, engage in the debate over the best solutions and, ultimately, enact policy that best positions Utah for decades to come.”
What this means for now is Utah taxes will remain at their current status prior to the passage of SB 2001. It is unclear if lawmakers will attempt to make any tax changes this year in light of the backlash from SB 2001.
This publication is designed to provide general information on pertinent legal topics. The statements made are provided for educational purposes only. They do not constitute legal or financial advice nor do they necessarily reflect the views of Holland & Hart LLP or any of its attorneys other than the author. This publication is not intended to create an attorney-client relationship between you and Holland & Hart LLP. Substantive changes in the law subsequent to the date of this publication might affect the analysis or commentary. Similarly, the analysis may differ depending on the jurisdiction or circumstances. If you have specific questions as to the application of the law to your activities, you should seek the advice of your legal counsel.