What's going on in the Utah Legislature This year?
It's the most wonderful time of the year in Utah...if you're a political junkie like I am.
For most of you, it's a time of wondering "what are they going to do to me this year"? So, what are they going to do?
Well, in Utah, with an 800 million dollar revenue shortfall (in a 10 billion dollar budget), the answer is pretty simple. Cut!
Gov. Herbert has said from the start that he won't support a general tax increase.
However, they have to find revenue somewhere.
I'd expect a hike in the cigarette tax. They might even look at reinstating the tax on food.
Two possibilities that would affect you and I and our business are a tax on professional services. That means a tax added to the cost of all services provided by licensees in the State. IE: The sale of your home, an appraisel, title work, and so on.
The second is a transfer tax on the sale of real property; your home or condominium would be taxed when it is sold, or when title is transferred.
We've been very good at avoiding both of those in recent years, but this year is becoming difficult.
I think we have the service tax beat for this year. However, there is a bill being run that would open the discussion again on transfer taxes.
It's only allowing private transfer "fees". However, it's my feeling that if we let the camel's nose under the tent, we'll see a transfer tax next year.
We will be establishing our position as an Association tomorrow at our next committee meeting. I hope that our members can see the whole donut, and not just the hole.
If they get hung up on allowing developers to include transfer "fees" in their developments, without seeing that the only difference between this and a tax is who receives the money, we're in trouble! I'll keep you updated!