Utah Changes to State Tax Code Referendum (2020)

Utah Changes to State Tax Code Referendum
Election date November 3, 2020
Topic Taxes
Status Not on the ballot
Type Referendum	Origin Citizens
List of Utah measuresUtah Constitutional Amendment AUtah Constitutional Amendment BUtah Constitutional Amendment CUtah Constitutional Amendment DUtah Constitutional Amendment EUtah Constitutional Amendment FUtah Constitutional Amendment GSubmit

The Utah Changes to State Tax Code Referendum was not on the ballot in Utah as a veto referendum on November 3, 2020.

This referendum effort sought to repeal Utah Senate Bill 2001, titled Tax Restructuring Revisions, which was designed to make changes to the state tax code. After proponents submitted signatures, the state legislature voted to repeal the tax bill themselves, thereby rendering the referendum effort moot. Lieutenant Governor Spencer Cox said the referendum would not be placed on the ballot since the bill it was targeting was repealed by the legislature. For more information, click here.

Overview

What would the referendum have done?

See also: Full text of measure

This referendum effort sought to repeal Utah Senate Bill 2001, titled Tax Restructuring Revisions. Among other things, SB 2001 was designed to make the following changes:

• decrease the individual income tax rate;
• decrease the corporate franchise tax and corporate income tax rate;
• change how the personal exemption tax credit is calculated;
• create a nonrefundable tax credit for social security benefits;
• increase the sales tax on food and food ingredients;
• create a refundable grocery tax credit;
• create a sales tax exemption for menstrual products;
• create a tax on gasoline (motor fuel) and special fuels, add a new tax on diesel fuel; and
• repeal certain appropriations from the General Fund to the Education Fund.

Text of measure

The full text of SB 2001, which the referendum petition effort sought to repeal, can be found here.

Support for a no vote

Referendum sponsors

Sponsors of the referendum effort included former state Representative Fred Cox (R), Darcy Van Orden of Utah Justice Coalition, Gina Cornia of Utahns Against Hunger, Jeffrey C. White, and Judy Rohner.

Organizations

• Utah Parent Teacher Association
• Harmons Grocery
• Utahns Against Hunger
• Republican Women’s Liberty Caucus
• Citizens for Tax Fairness
• United Women’s Forum
• United Tax Reform Coalition

Individuals

• Democratic 2020 candidate for Utah Governor Zachary Moses
• Republican 2020 candidate for Utah Governor Jon Huntsman Jr.
• Republican 2020 candidate for Utah Governor Aimee Winder Newton
• Republican 2020 candidate for Utah Governor Jeff Burningham
• Republican 2020 candidate for Utah Governor Jason Christensen

Arguments

• The Utah Parent Teacher Association said, "It is Utah PTA’s position that the tax reform legislation that was recently approved by Utah’s Legislature in a special session is a threat to the long-term funding of education in Utah. It cuts Utah’s funding source for education and places an untenable burden on Utah’s most vulnerable populations, including families with children who are already going hungry without adequate means to purchase food."

• Republican 2020 candidate for Utah Governor Jon Huntsman Jr. said, "I initiated tax reform that reduced the sales tax on food when I was governor, which has now been reinstated. I fully support democracy in action with the referendum effort. If elected, I will make it a priority to eliminate the sales tax on food."

• Democratic 2020 candidate for Utah Governor Zachary Moses said, "This is terrible. This is a robbery of wealth from the lower classes to the upper classes."

Support for a yes vote

Organizations

• Sutherland Institute

Individuals

• Utah Senate Majority Whip Daniel Hemmert (R)

Arguments

• Utah Senate Majority Whip Daniel Hemmert (R) said, "The education fund will still be better off [under the bill] than it has been in prior years, to the tune of about $200 million."

• The Sutherland Institute said the tax bill would eliminate the state tax on social security, reduce taxes by $160 million, increase public school funding, and "stabilize and enhance social services." The institute also said "nearly 90% of Utahns will receive a substantial tax cut."

Background

Senate Bill 2001 (2019)

Utah Senate Bill 2001 (SB 2001), sponsored by Republican Sen. Lyle Hillyard, was passed by the Utah Legislature in a special session on December 12, 2019. The bill passed in the Senate by a vote of 20-7. It was approved in the state House by a vote of 43-27 with all votes in favor from Republicans and 16 Democrats joining 11 Republicans voting against. The state Senate approved the final version by a vote of 19-7. All votes in favor were from Republicans while five Democrats and two Republicans voted against it. Gov. Gary Herbert (R) signed the measure into law on December 18, 2020.

Veto referendums in Utah

See also: List of Utah ballot measures

In Utah, bills passed by the state legislature can be put before voters through a veto referendum petition.

• Signature requirement: 10 percent of the total votes cast for president in the state
• Result of a yes vote: targeted law upheld
• Result of a no vote: targeted law repealed
• Successful veto referendum petitions suspend the targeted law until the election.

Year	State	Subject	Measure	Outcome for target law
2007	Utah	Education	Referendum 1: School Vouchers	Repealed
1974	Utah	Property	Referendum 1: Land Use Act	Repealed
1954	Utah	Education	Referendum A: Abolishment of Carbon College	Repealed
1954	Utah	Education	Referendum B: Dixie, Snow and Weber Colleges as Private Organizations	Repealed

Path to the ballot

See also: Laws governing the initiative process in Utah

The state process

The number of required signatures is tied to the number of active voters as of January 1 following the most recent regular general election. For veto referendums, proponents must gather signatures equal to 8 percent of the total number of active voters.

The requirements to get a veto referendum certified for the 2020 ballot:

• Signatures: 115,869 valid signatures

Each signature is verified by the county clerks in the county where the signature was collected. After verification, the petition forms are delivered to the lieutenant governor, who counts the total number of certified signatures and declares the petition as either sufficient or insufficient.

Signatures for veto referendums must be submitted on a 14-day rolling basis and must all be submitted within 40 days of the adjournment of the legislative session at which the targeted bill was passed. Signatures for the referendum were due on January 21, 2020, 40 days after the second special session ended on December 12, 2019.

Details about the referendum

• The referendum was filed on December 16, 2019. Sponsors included former state Representative Fred Cox (R), Darcy Van Orden of Utah Justice Coalition, Gina Cornia of Utahns Against Hunger, Jeffrey C. White, and Judy Rohner. Sponsors indicated they would not use paid signature gatherers.

• A separate group, The People's Right, filed a referendum targeting the same bill on December 17, 2019, but the referendum application was rejected by the Lieutenant Governor's office on December 18, 2019, because sponsors did not meet the statutory requirements of having voted in a general election in Utah within the past three years.

• Supporters submitted 152,000 signatures on January 23, 2020. To qualify for the ballot, 115,869 valid signatures are required. As of 8:00 a.m. on January 31, county clerks had verified 143,768 signatures as valid. County clerks had until February 4, 2020, to verify the signatures, but were told they could stop counting signatures since the bill was repealed.

• Utah Governor Gary Herbert (R), Senate President Stuart Adams (R), and House Speaker Brad R. Wilson (R) announced that the legislature would repeal Senate Bill 2001 on January 27, the first day of the legislative session. Herbert and legislative leaders said, "We applaud those who have engaged in the civic process and made their voices heard. We are not foes on a political battlefield, we are all Utahns committed to getting our tax policy right. That work is just beginning. Once the repeal is signed into law, the legislature will begin work under the reinstated tax code to prepare the fiscal year 2021 state budget. Repealing SB 2001 will enable the legislature to draft the budget without the uncertainty of a referendum potentially changing the tax code midway through the budget year."

• Rep. Francis Gibson (R) and Sen. Lyle Hillyard (R) introduced House Bill 185 to repeal the tax bill. On January 28, 2020, the House voted 70-1 in favor of HB 185 to repeal SB 2001. Republican Rep. Keven Stratton voted against repealing the tax bill. The Utah Senate voted unanimously to repeal the bill. The governor signed it on January 29, 2020.

See also

2020 measures

• 2020 ballot measures
• Taxes on the ballot
• 2020 petition deadlines

Utah

• Utah ballot measures
• Utah initiative laws

News and analysis

• Ballot measure lawsuits
• Ballot measure readability
• Ballot measure polls
• Ballot measure signature costs

External links

• Utah 2020 Initiative Filings
• Senate Bill 2001 (2019)
• House Bill 185