State and local governments, like the federal government, have dozens of available options to generate revenue through taxation and fees, many of which are unknown to the average person. Government officials should strive to make these obligations equitable, transparent, and avoid counterproductive taxes.
One such tax that has missed the mark is Utah’s annual tax on business supplies—the Tangible Personal Property Tax, which violates nearly every principle of fair tax policy.
To comply with this tax, business owners must annually tally up their supplies and use a number of confusing depreciation schedules to determine how much they owe. The relatively small amount of revenue generated does not justify the wasted time and effort to repeatedly report and pay this inequitable tax.
As state governments move away from taxes on business inputs that discourage investment and, consequently, economic growth, this is one of the taxes that must be eliminated.