2019 Bills

SJR 3: Constitutional Amendment to Reduce a Burdensome Tax

This bill passed the Senate 21-8 and was not heard in the House. 

Libertas Institute supports this bill

Staff review of this legislation finds that it is aligned with our principles and merits support.

Senate Bill 42, sponsored by Senator Dan McCay, aims to enact important policy changes for the Tangible Personal Property tax that imposes heavy compliance burdens on business owners.

Those changes cannot take place without an amendment to Utah’s Constitution. So Senator McCay is also sponsoring Senate Joint Resolution 3, which proposes to amend the Utah Constitution to allow the Legislature to exempt tangible personal property from the annual property tax if the property was subject to the sales tax.

Without this amendment, the Legislature is unable to substantially reduce this burden, because the state Constitution calls for the tax and restricts the Legislature’s ability to modify it. It is therefore necessary to secure passage of this amendment—first in the Legislature and then later on the November 2020 ballot.

  • I had to go through this every year I ran my business in Utah and yes, it’s nuts. I would spend hours and hours figuring it out, and then I’d send a check to the state for $11.14 or something, which probably didn’t cover the cost of the government processing the payment. It certainly was wasting a lot more than $11.14 of my time. I’m sure the Utah govt collects more than that from businesses larger than mine, but that just means it is taking even more time from those businesses. Time they could be spending on making better products and services, hiring people, etc. Sometimes I get the idea 99% of our legislators have no clue what it’s like to run a business, and how much harder they make it for us entrepreneurs with all the forms, taxes, fees, etc. A little streamlining could go a long way, not just to benefit business owners, but anyone who depends on businesses, which is basically everyone.