“The year of the tax cut” prevails

In January, Senate President Stuart Adams called 2022 "the year of the tax cut." Photo: President J. Stuart Adams

SALT LAKE CITY — The Utah Senate unanimously approved a $192 million state income tax cut (S.B. 59) on Thursday, lowering the income tax rate from 4.95% to 4.85%.

The bill also includes an Earned Income Tax Credit and an expansion of the state’s Social Security tax credit.

Gov. Spencer Cox signed it into law on Friday.

A family of four earning an annual income of $72,000 a year would receive a tax cut of roughly $100 a year. The bill’s fiscal note says the earned income tax credit is nonrefundable and “may result in tax savings of $194 on average for an estimated 81,764 individuals in tax year 2022.”

“As a freshman legislator nine years ago, I supported an earned income tax credit to benefit low- and moderate-income Utahns. Every year since I have worked to get the EITC signed into law. I could not be more excited to finally get this piece of legislation across the finish line,” Cox said in a statement.

“I also look forward to signing into law income tax cuts for all Utahns in addition to expanded Social Security tax cuts for Utah’s most vulnerable seniors. I applaud the Legislature on their efforts in arriving at this bipartisan and balanced outcome.

“All together, these tax cuts will return hard-earned money to Utah families and alleviate current inflationary pressures. These tax cuts are a tremendous win for Utah families and seniors, and I look forward to signing this bill into law.”