Senate advances small income tax cut after divided debate over services and affordability

SALT LAKE CITY — The Utah Senate moved forward on a modest income-tax cut Monday, advancing SB60 — a 0.05 percentage-point reduction — after a floor debate in which supporters framed the measure as affordability relief and opponents warned of shifting burdens and cuts to services.

Sponsor Sen. McKay described SB60 as an incremental rate reduction and argued Utah's income-tax receipts have outpaced inflation in recent years. "The purpose of the bill is that it as stated now, it's just an income tax rate reduction," McKay said. (Sen. McKay)

Opponents, including Sen. Riebe, said the timing is poor for further cuts because local property taxes and state services are under strain and that the state may be absorbing federal funding losses. "When I think about my two neighbors in home, they both are retired individuals that are now having increased property taxes thrust upon them," Riebe said in opposition. (Sen. Riebe)

Supporters including Sen. Brammer and Sen. Wyler said even small annual savings matter to families and that modest, incremental cuts have accompanied revenue growth in prior years. Following debate, the Senate recorded a roll-call of 20 ayes and 7 nays with 2 absent; the matter will proceed toward third reading.