Past NFIB/Utah State Legislative Victories

Date: August 23, 2015

Defeated a Proposed Minimum-Wage Increase
House Bill 117, calling for an hourly wage increase, was back again for the fifth year. This bill would have increased the minimum-wage rate to $10.25 per hour after July 1, 2018, and then to $12 an hour after July 1, 2022. It would have also allowed the Labor Commission to establish, by rule, a minimum hourly wage for minors that is different from the above-mentioned minimum wage. NFIB/Utah testified in committee against this legislation, pointing out many concerns for small business. The first concern mentioned by Utah businesses is that the market for employees in Utah is a very difficult market. Employers are finding it difficult to draw enough qualified applicants for jobs they are trying to fill. The market is also showing that if employers want to find qualified employees and keep them for a long duration they need to pay what the market demands. Small businesses in Utah prefer that wages be market driven not artificially set by legislation. NFIB/Utah was key in having this bill held in committee.

Stopped a Special Minimum Wage for Tipped Employees
A minimum-wage increase for tipped employees, HB 118, was in a separate bill this year from the proposed minimum-wage increase. It would have required those who pay tipped employees to compensate them at least $3.25 an hour, up for the current $2.13 minimum. NFIB called several establishments that pay tipped employees and also talked to many of the employees. Many of them make enough in tips to calculate a wage over the proposed minimum-wage increase. One of the employees could make about $100 to $150 per shift in tips at a restaurant and didn’t even have the employee take customers’ orders, just service the table with drinks and clear the empty plates. NFIB presented the main testimony in committee, and, along with lobbying the committee, was instrumental in having the bill held in committee.

Killed a Proposal to Increase Litigation Against Employers
House Bill 79, which was opposed by the entire Utah Business Coalition, would have allowed the recovery of attorneys’ fees by the prevailing party in litigation, under the private attorney general doctrine, by repealing the prohibition currently in statute. Allowing the recovery of attorneys’ fees in these matters would encourage additional litigation.

A similar provision under California law has resulted in lawsuits against employers. Just the specter of having attorneys’ fees awarded against businesses could motivate businesses to settle lawsuits that should not otherwise be settled (including expensive and lengthy environmental claims).

NFIB played a significant role in lobbying legislators to keep what is already in law and to help protect businesses from potential abuse.

Beat Back a Bill Changing Definition of Employer
House Bill 283 aimed to expand federal workplace protection laws not intended for the smallest employers. Specifically, this bill would have amended the definition of employer and required certain employee discrimination and unfair labor practice claims involving employers with fewer than 15 employees to proceed to an evidentiary hearing without a division investigation. Something NFIB viewed as unfair to employers. NFIB could see this legislation for what it was and knew that small businesses in Utah could not afford to have additional rules and regulations placed upon them. Small businesses treat their employees like family and work hard to make sure they are happy because if they don’t, they know how difficult it is to replace employees. NFIB stood firm against heavy pressure in helping defeat this unwise proposal.

Prevented a Dream Bill for Lawyers from Passing
A dream bill for trial attorneys and a nightmare for business owners, House Bill 359 would have created new liability for individuals, businesses, homeowners, property owners, churches, and parent companies jointly and severally liable for any intentional tort that occurs within a facility or on their property. NFIB/Utah and its entire business coalition partners worked very hard to make sure this bill was stopped in committee.

In between times working to kill legislation bad for Main Street entrepreneurs, NFIB helped get some pro-small-business legislation passed.

Won Single-Sign-On Simplification
House Bill 150, funds the “single sign on” simplification program. NFIB/Utah successfully limited the fee to a nominal amount not to exceed $5. This fee will be used to design, create, operate, and maintain the “single sign on” web portal. The Department of Technology Services is charged to create a web portal that allows a person doing business in the state to access, at a single point of entry, all relevant state-collected business data about the person, including information related to:

  • business registration
  • workers’ compensation
  • tax liability and payment
  • other information collected by the state that the department determines is relevant to a person doing business in the state.

By enabling a single sign-on process that extends across agencies, the state can create a new model for serving businesses and citizens by providing a more personalized view of all of the services that are relevant to the individual user.

In a few years, Utah will have an excellent “single sign on” source for business. NFIB/Utah is very supportive of a “single sign on” source and we look forward to seeing this become reality. NFIB/Utah supported this bill through both houses and thanks Governor Herbert for signing it into law.

Secured Single-Sales-Factor Method for Tax Calculation
House Bill 293 alters Utah’s Corporate Income Tax calculation to include the “single-sales-factor” method for most industries in the state. This means that for a multi-state business conducting business in Utah, the state will only use the amount of sales in Utah to calculate a company’s state income tax liability on their profits. More and more states are using the “single sales factor” rather than including a business’s property and payroll in the state as part of the calculation of their tax liability. The hope is that this bill will lower the tax burden on Utah businesses, which will help sustain Utah’s economic success for the future. NFIB/Utah encouraged all legislation that will help business be more successful. HB 293 was signed into law by the governor

Obtained Vital Independent Contractor Clarification
House Bill 364 further clarifies when an entity can be considered an independent contract, not an employee. NFIB/Utah welcomed this clarification and encouraged passage throughout the process. It was signed into law by the governor.

Acquired Greater Local Government Transparency
Signed into law by Governor Herbert, Senate Bills 28 and 29 are companion bills seeking transparency in local governments. Currently, there are over 700 different entities that local governments have created. It has been very difficult to determine exactly whom those entities are. SB 28 will require all those entities to register with the lieutenant governor’s office and will allow the state to withhold funds and property tax disbursements if an entity does not comply. SB 29 requires each county in Utah to publish the list of government entities on the county’s website. NFIB/Utah has worked for years to create transparency in government at all levels. It is difficult for all businesses to comply with rules and regulations created by government entities and even harder if they don’t know whom they are and what their purpose is. NFIB/Utah will continue to support transparency legislation in the future.

Succeeded in Getting Workers’ Compensation Advisory Council Changes
Senate Bill 64 passed the Utah State Legislature and was signed by the Governor. The most important aspect of this bill reduced the rate at which certain workers’ compensation carriers and self-insured employers must reimburse a hospital for covered medical services. NFIB/Utah supported the changes made in this legislation and appreciates the advisory council for staying on top of concerns in this arena. The bill also makes some technical changes to the membership of the workers’ compensation advisory council as well as changes to the report that the advisory council gives to the Business and Labor Committee during the interim.

Obtained Workers’ Compensation Case Waivers
Senate Bill 75 creates a path in which a waiver or reduction in penalty may be given to an employer for conducting business without securing workers’ compensation benefits for the employer’s employees. In the future, one-stop shop legislation will solve this problem. Currently, the process of starting a new business is so confusing that many new businesses run the risk of missing one step or another in creating a new business. This bill allows for a one-time-only wavier or reduction in the fee for overlooking workers’ compensation for employees. NFIB supports this because when you are a new business, you might not have all the information at your fingertips to make sure the business is complying with all state laws. SB 75 was signed into law.

Won Greater Clarification on Municipal Business Licensing
Senate Bill 158 is a clarification needed on legislation passed last year that prohibited a city to require a business license for a home-based business if that business had minimal impact on their neighborhood. Senate Bill 158 provides that a municipality is allowed to charge a business license fee to a business when an otherwise exempt business owner requests a license. The concern here was created when some small businesses claimed that even though they fit into the exempt category that doesn’t require a business license, they needed a business license to comply with state and federal laws regulating their specific type of business (example, gunsmith businesses are regulated federally and need to have a city business license in order to acquire a federal firearms permit.) NFIB supports this legislation and is encouraging lawmakers to stay on top of any additional burdens that cities place on truly small businesses that are unnecessary.

Won Clearer Regulatory Transparency
Of the 75 issues NFIB measures every four years and publishes in its Small Business Problems & Priorities report, “Unreasonable Government Regulations” came in second in 2016, a three-point jump from its fifth place in 2012. In a special poll just on regulations that NFIB conducted in 2017, it found that one-third of small employers have had a government official enter their place of business to inspect or examine their records and/or licenses or otherwise check on their compliance with some government requirement.

As part of its never-ending lobbying efforts to counter the debilitating effects of regulations, NFIB/Utah made passage of House Bill 272, sponsored by Rep. Brad Wilson, a top priority. The legislation, which passed the Legislature almost unanimously and was signed into law by Gov. Gary Herbert, will shed light on the rule-making process of government agencies.

This new law now requires:

  • the Office of the Legislative Fiscal Analyst, when evaluating proposed legislation, to indicate whether the legislation would make changes in the regulatory burden for state residents or businesses
  • state agencies, once legislation is passed, to analyze every possible means available to measure the effect of the new legislation before holding public hearings on proposed new administrative rules, to show the regulatory impact the rule would have on state residents or businesses
  • the analysis to indicate whether each proposed rule will impact the regulatory burden and, if so, whether the impact increases or decreases the regulatory burden. It must also characterize whether the change in burden is high, medium, or low
  • agencies to submit a summary of efforts made to comply with obligations to assure that new administrative rules minimize negative fiscal impacts on small businesses.

Secured Better Vetting of Ballot Measures Seeking Tax Increases
In another victory for transparency and forthrightness, NFIB supported the successful passage of House Bill 255, sponsored by Rep. Daniel McCay and Sen. Curt Bramble. Governor Herbert signed it into law.

To qualify an initiative for a statewide ballot in Utah, the initiative sponsors must gather signatures of registered Utah voters equal to 10 percent of all votes cast for president of the United States in the last General Election from each of at least 26 of the 29 state senate districts. In local elections, initiative sponsors must gather 10 percent to 30 percent of signatures of such votes cast, depending on the population of the local city or town.

HB 255 now adds an additional hurdle for statewide and local initiative sponsors seeking a tax increase at the ballot box. It requires that when an initiative or a petition for an initiative proposes a tax increase, the governor’s Office of Management and Budget must prepare an unbiased, good faith estimate of the fiscal impact of the law proposed by a statewide initiative. Similarly, for a local initiative, a local budget officer must prepare a similar report.

For statewide initiatives, sponsors must then hold seven public hearings throughout the state in specified districts. For local initiatives, similar public hearings must also be held. The bill’s sponsors proposed this measure to make sure that tax increases presented to Utah voters get a thorough vetting before they make it to the ballot box. It is intended to make sure that Utah continues to lead the nation in having well-thought-out tax policy.

Victories by Defeat
Four big victories for small business during the 2017 session came in the defeat of four measures, ones that would have imposed costly, time-consuming mandates. They were:

  • House Bill 147, Living Wage Amendments, by Rep. Lynn Hemingway—Back for a fourth time in as many years with a few slight changes, none of which would have helped small businesses. HB 147 would have required that on and after July 1, 2017, and before July 1, 2018, the minimum wage to be $10.25 per hour. Further increases would have followed each year until the minimum wage reached $15 in 2022. Presently, the Utah minimum wage is $7.25 per hour. The bill also would have provided administrative rulemaking authority to establish a minimum hourly wage for minors that is different from the adult minimum wage and to change the minimum wage for tipped employees within the state to $5 per hour. NFIB/Utah succeeded in having the bill held in committee.
  • House Bill 213, Workplace Discrimination Amendments, by Rep. Mark Wheatley—Would have limited the options for employers to address discrimination issues with employees, including the removal of mediation as an option to resolve disputes. Under this bill, employee discrimination charges would more likely need to go to court, resulting in higher costs for small-business defendants. NFIB was instrumental in getting this bill held in committee.
  • House Bill 242, Family and Medical Leave Amendments, by Rep. Dixon Pitcher—Would have required an employer who employs between 30 and 49 employees to comply with the federal FMLA laws. Currently, only employers with 50 or more employees are required to comply with federal FMLA law. The 1993 federal law exempted smaller businesses from the law’s obligations, understanding that the burdens are too great for small businesses to absorb. NFIB/Utah worked with the sponsor to help him understand what this bill would require. Once he finally understood everything that was involved, he voluntarily held the bill.
  • House Bill 153, Uninsured and Underinsured Motorist Coverage Amendments, by Rep. Michael Kennedy—Would have required employers to purchase uninsured and underinsured coverage for their employees who drive their own cars while working. Such a requirement would have unnecessarily increased costs for many small businesses. NFIB stood firm in helping defeat this unwise proposal.

Stopped Mandatory Minimum-Wage Increase
NFIB stopped, for the third consecutive year, a bill that would have increased the minimum wage in Utah. This year the sponsor was asking for an increase to $12 an hour for private and public employees. The legislation would have tied future increases to the Consumer Price Index every year after. If the CPI went down, however, the minimum wage would stay the same.

Excluded Business Personal Property Tax as New Growth
NFIB was successful in getting legislation passed that stopped Business Personal Property from being counted as new growth. New growth is counted by the taxing entities as additional revenue for determining future budgets.

Required Uniform Reporting of Business Personal Property Tax
NFIB was instrumental in securing funding and a requirement for all 29 counties in the state of Utah to provide a uniform system statewide for reporting Business Personal Property Tax. The system is to be an online system that will allow a business that owns business personal property in more than one county to report and pay taxes for all the counties with one report and submission.

Won a 2-percent lowering of the unemployment insurance tax rate
Since 2012, NFIB was instrumental in lowering the rate from 9.4 percent down to 7.4 percent and was able to maintain the reduction for this year. This gives incentives to business owners to grow and invest more in their business and employees.

Secured a cut in the Business Personal Property Tax
NFIB was instrumental in creating an exemption for purchases of $1,000 or less and eliminated the tax for businesses with $10,000 or less of business personal property
Led the successful passage of a balanced budget amendment
By contributing strategy and tactics, NFIB was instrumental in winning passage of bill that makes Utah one of 27 states calling on Congress to allow for a convention of states for the purpose of amending the U.S. Constitution to require a balanced federal budget. The full story can be read here.
Stopped mandatory minimum wage increase
House Bill 309 attempted to raise the minimum wage to $10.25 and then tie it to the Consumer Price Index, which would have allowed it to rise with inflation every other year. The bill would also have created a commission to set the minimum wage for minors and inserted a coordinating clause for House Bill 236, which removed the exemption for tipped employees, requiring them to be paid the new minimum wage of $10.25 an hour as well—plus tips. NFIB stopped both bills quickly by reminding legislators that the minimum wage is an entry-level wage, earned primarily by teens and young adults starting out on their work lives, and that increasing it only eliminates opportunities to enter the workforce.
Defeated proposed increases in gas and water taxes
NFIB helped defeat measures to increase the sales taxes on gasoline and water. Proposed increases were stopped in their originating committees thanks to intense lobbying from NFIB.
Prevented plan to broaden sales tax to include new services
NFIB stopped the extension of sales tax to additional services, such as bookkeeping, haircuts, and legal fees.

Stopped Mandatory Minimum Wage Increase

NFIB stopped a bill that would have increased the minimum wage rate in Utah to $10.25 an hour and would have tied future increases to the Consumer Price Index every year after. If the CPI went down, however, the minimum wage would stay the same.
Lowered Unemployment Insurance Tax Rate by 2 Percent
Since 2012, NFIB was instrumental in lowering the rate from 9.4% down to 7.4% and was able to maintain the reduction for this year. This gives incentives to business owners to grow and invest more in their business and employees.
Lowered the Tangible Personal Property Tax
NFIB helped create an exemption for purchases of $1,000 or less and eliminated the tax for businesses with $10,000 or less of business personal property
Defeated Proposed Increases in Gas and Water Taxes
NFIB helped defeat measures to increase the sales taxes on gasoline and water. Proposed increases were stopped in their originating committees thanks to intense lobbying from NFIB.
Stopped Plan to Broaden Sales Tax
NFIB stopped the extension of sales tax to additional services, such as bookkeeping, haircuts, and legal fees.

2011-2012 Session and prior sessions

Lowered Unemployment Tax Rate by 2 percent
NFIB was instrumental in lowering the rate from 9.4 percent down to 7.4 percent retroactive to January 1, 2012. This gives incentives
to business owners to grow and invest more in their business and employees.

Stopped Plan to Broaden Sales Tax to Include Services
Stopped the extension of sales tax to additional services such as bookkeeping, haircuts, and legal fees.

Defeated Proposed Increases in Gas and Food Taxes
NFIB defeated measures to increase the sales taxes on gasoline and food were stopped in their originating committees.

Won Changes to the Utah Healthcare Exchange
NFIB succeeded in getting technical corrections making health care more affordable for small business into the Utah
Health Care Exchange, which many other states are looking to as a national model to emulate.

2010 NFIB/Utah Legislative Victories

Defeated all attempts to raise taxes to plug the state’s $1 billion deficit
Small business owners are always worried when there is a budget deficit, because one of the easiest ways to fill the gap in the budget is to increase various different taxes. The only tax increase that the Legislature approved in 2010 was an increase in the tobacco tax. We were able to convince the lawmakers to hold off on any increases in sales, gas, and other taxes.

Defeated legislation that would have removed the vendor discount for collection of sales tax
NFIB played a key role in the defeat of legislation that would have removed the vendor discount for collection of sales tax. This discount was implemented to help defer the cost to the vendor in collection of sales tax. Several Legislators were pushing this as a means to make up money for the deficit.

Won major healthcare reform
More transparency and the ability to select products either in the Exchange or in the traditional market were two huge victories for NFIB. No organization or association has more knowledge on this issue than NFIB, because its members have ranked affordable healthcare their No. 1 concern for more than two decades. So it was only natural NFIB/Utah would take a part in shepherding passage of House Bill 294, authored by State Rep. David Clark, through its committee hearings, floor votes, and on to Gov. Gary Herbert’s desk. In brief, this historic healthcare reform will:

  • Provide access to the Department of Health’s all payer database for research
  • Clarify the restrictions and protections for identifiable health information Require health care facilities to post prices for patients
  • Consolidate reporting by the State Insurance Department Require the insurance commissioner to convene a group that will review claim denials for plan comparison Require cooperation of state departments in developing additional changes
  • Define what types of health plans that are to be offered within the Exchange Allow small employers the choice of selecting insurance products in the Health Insurance Exchange of in the traditional market outside of the Exchange
  • Prohibit insurers in the defined contribution market from treating renewing groups as new business, subject to premium rate increases, based on the employer’s move from the traditional market into a defined contribution plan in the Health Insurance Exchange
  • Create a producer in the defined contribution market
  • Modify underwriting and rating practices in the small group market inside and outside of the Health Insurance Exchange Re-authorize the Health System Reform Task Force for one year.

NFIB also helped win passage of healthcare legislation that clarified the type of health insurance coverage that is required in order to contract with the state for certain construction related contracts and amended the definition of qualified health insurance coverage to clarify the standards.

Won tort reform legislation on non-economic damages
NFIB helped pass legislation that amends the cap on non-economic damages that may be awarded in a malpractice action. The bill requires an affidavit of merit from a healthcare professional to proceed with an action if the pre-litigation panel makes a finding of non-meritorious. An affidavit of merit is a requirement in some jurisdictions, primarily in medical malpractice claims, to have an expert file an affidavit stating the claim has merit. It is a measure enacted to deter frivolous lawsuits. When a plaintiff in a medical liability lawsuit does not file an affidavit of merit with the complaint, the case may be dismissed. This legislation also limits the liability of a health care provider, in certain circumstances, for the acts or omissions of an ostensible agent. An ostensible agent is a person who has been given the appearance of being an employee or acting (an agent) for another (principal) that could make anyone dealing with the ostensible agent reasonably believe he/she was an employee or agent.

Secured favorable changes to state contracting legislation
NFIB played a key role in passage of 1st Substitute House bill 20. This bill amends state code related to the requirement that contractors with certain state entities must provide qualified health insurance to their employees and the dependents of the employees who work or reside in the state of Utah. The bill clarifies that the application of a waiting period for health insurance may not exceed the first of the month following 90 days of the date of hire. This bill clarified that the qualified health insurance coverage already being required by law must be a minimum standard but an employer may offer greater coverage. This bill also cleaned up language defining the qualified health insurance coverage that the state required, amended enforcement provisions for good faith compliance and clarified how an employer offering a defined contribution through the exchange would comply.

Defeated legislation expanding unemployment benefits
NFIB worked hard to defeat legislation that would have provided that unemployment benefits not be denied to an individual solely on the fact that the individual was seeking part-time work. This bill would have required increased payments to the state in order to cover the additional cost.

2009 Victories

Won historic health-care reform
Small business owners who currently can’t afford to provide healthcare for their employees—more than half, on a national average—just received a heap of great news that will make it easier for them to do so. No organization or association has more knowledge on this issue than NFIB, because its members have ranked affordable healthcare their No. 1 concern for more than two decades. So it was only natural NFIB/Utah would take a part in shepherding passage of 2nd Substitute House Bill 188 through its committee hearings, floor votes, and on to Gov. Jon Huntsman’s desk. In brief, this historic healthcare reform will:

  • Allow insurers to offer lower-cost health insurance products to the individual and small employer group markets that do not include certain state mandates which drive the price of premiums up
  • Create a lower-cost Utah NetCare Plan alternative to federal COBRA and state mini-COBRA plans
  • Require health-insurance brokers and producers to disclose their commissions and compensations to customers prior to selling a health plan
  • Provide for the creation of an Internet Portal and orders the Insurance Department to include in its annual market report a summary of the types of plans sold through the Portal
  • Establishment a defined-contribution arrangement on the Portal that will be available to small employer groups on Jan. 1, 2010 and larger groups Jan. 1, 2012
  • Give a wider range of choices of health plans for everyone by Jan. 1, 2012
  • Amend the timing required by hospitals for sending billing information to patients
  • Create a demonstration project and establish a committee for innovating the payment and delivery of healthcare
  • Require health benefit plans to issue to enrollees a printed card containing health plan information
  • Require health benefit plans to provide information sufficient for a health care provider to determine the compensation or payment terms for healthcare services
  • Provide greater transparency on plan benefits, provider-networks, wellness programs, claim-payment practices and solvency ratings. When everything is up and running, individuals and small business owners alike will be able to log on to the Portal and compare every health plan feature and enroll in the one they like.

Won new law simplifying healthcare information between consumer, provider, and insurer, which will eventually lead to swipe-card technology.
NFIB also helped pass another healthcare reform law, House Bill 165, that requires the Insurance Department to convene a group of providers and payers in order to establish standards for the electronic exchange of health plan information using card swipe technology which is compatible with national electronic standards.  This bill prohibits an insurer from requiring less than one business day’s notice of an emergency in-patient hospital admission and amends the period of time in which an insurer can recover an amount paid to a health care provider when the insurer determines the payment was incorrect.

Won passage of a joint resolution of the Utah State Legislature preserving the right to vote in secret on union elections.
NFIB played a key role in passage of 1st Substitute House Joint Resolution 8, which proposes to amend the Utah Constitution to include elections under state or federal law for public office, on an initiative or referendum, or to designate or authorize employee representation or individual representation among the elections that are required to be by secret ballot. This resolution will be on the November 2010 ballot.

Defeated all attempts to raise taxes in order to plug the state’s $1 billion deficit.
Facing a $1 billion deficit in the state budget, the temptation was great, but NFIB succeeded in discouraging legislators from raising taxes on businesses in Utah. As a result, not a single tax increase passed.

Helped win new law adding local entities to the Utah Public Finance Web site, so the public can better track where their tax money goes.
NFIB pushed for passage of 1st Substitute Senate Bill 18, requiring local entities to participate in the Utah Public Finance Website. By making the public financial information available on the Internet for participating state entities and participating local entities, the Utah Public Finance Website allows taxpayers the ability to view, understand, and track the use of their dollars.

2008 and prior victories

HB 77: Personal Property Tax Amendments
Requires the creation of a depreciation schedule for specific classes of taxable tangible personal property.

HB 37: Utah Business Resource Centers Act
Provides for the establishment and administration of business resource centers provided by the Governor’s Office of Economic Development

HB 75: Inventory and Review of Commercial Activities
SB 45: Inventory for Competitive Activities of Local Entities
SB 38: Transparency in Government
Addresses the problem of government competition with private business.

HB 133: Health System Reform
Creates a Health System Reform Task Force that will continue to work towards solutions that address high health care costs and access to health insurance.

HB 53: Impact of Administrative Rules on Small Business
Requires a state agency to consider methods to minimize the impact of an agency’s proposed administrative rule, if the agency reasonably expects the rule will have a measurably negative fiscal impact on small businesses.

HB 77: Personal Property Tax Amendments
Requires the creation of a depreciation schedule for specific classes of taxable tangible personal property:

    • Allows an individual to elect to designate certain taxable tangible personal property as “expensed personal property” for valuation and taxing purposes.
    • Defines the following terms:
      • Acquisition Cost: All costs required to put an item of tangible personal property into service including, purchase price for new or used items, the cost of freight and shipping, the cost of installation, engineering, erection, or assemble and sales and use taxes.
      • Expensed personal property: An item of taxable tangible personal property that has an acquisition cost of $1,000 or less and an individual elects to have assessed according to the schedule below.
      • Item of taxable tangible personal property: Does not include an improvement to real property or a part that will become an improvement.
      • Short life expensed personal property: An expensed personal property that is the same type as the following personal property:
        • Short life property
        • Short life trade fixtures; or
        • Computer hardware
    • Allows the Tax Commission to make rules defining the terms “item of taxable tangible personal property,” “short life property,” “short life trade fixture” and “computer hardware.”
    • Requires the Tax Commission, beginning Jan. 1, 2010, to develop a depreciation schedule for short life expensed personal property.
    • Allows an individual to elect to designate taxable tangible personal property as expensed personal property.
    • Prohibits a county from requiring an individual to itemize the individual’s expensed personal property.
    • Requires that if audited, a taxpayer shall provide proof of the acquisition cost of the expensed personal property.
    • Prohibits a designation as an expensed personal property from being revoked.
    • Requires an individual to pay taxes according to the taxable value determined by the schedule posted by the Tax Commission.
    • Requires an individual who sells or otherwise disposes of an item of expensed personal property prior to the period in the schedule, to continue to pay taxes according to the schedule posted.
    • Requires an individual, who elects to designate an item of taxable tangible personal property acquired before Dec. 31, 2008, as expensed personal property at a time after the first year after the item is acquired, to pay taxes according to the taxable value determined by the schedule for a time period that equals; the time period designated on the schedule less the time period beginning when the person acquired the item of expensed personal property and ending when the person designated the item as short life expensed personal property.
    • Prohibits an individual who elects to designate taxable tangible personal property as expensed personal property in accordance with the schedule, from appealing the values described in the schedule.
    • Requires for the taxable year beginning on Jan. 1, 2009, and ending on Dec. 31, 2009, the taxable value of short life expensed personal property to be calculated by applying the present good factor against the acquisition cost of the property as follows:

Short Life Expensed Personal Property Schedule

Year of Acquisition Percent Good Factor of Acquisition Cost
2008 69 percent
2007 52 percent
2006 30 percent
2005 17 percent
2004 11 percent

Requires for taxable years beginning on or after Jan. 1, 2010, that the taxable value of short life expensed personal property to be assessed according to a schedule developed by the commission in accordance with Title 63, Chapter 46a and the Utah Administrative Rulemaking Act.

HB 37: Utah Business Resource Centers Act
The legislation creates the Utah Business Resource Centers Act, a partnership between the Governor’s Office of Economic Development and state institutions of higher education to establish business resource centers.  These centers will coordinate economic development activities in a geographical area of the state and measure economic impact.  The centers will act as a resource for small business.

HB 75: Inventory and Review of Commercial Activities
HB 75 addresses the membership of the Privatization Policy Board allowing business to have additional members.  The legislation clarifies the duties and responsibilities of the Board and gives them direction and accountability.

SB 45: Inventory for Competitive Activities of Local Entities
SB 45 requires the disclosure of the inventory of activities that county and city entities provide that will be studied by the Privatization Policy Board.

SB 38: Transparency in Government
SB 38 creates the Utah Public Finance website to provide public financial information and requires that it be administered by the Division of Finance.  The legislation requires state entities to provide public financial information that will be accessed through the Utah Public Finance website.  This bill creates the Utah Transparency Advisory Board and sets up the implementation and administration of the Board along with duties.

Saved small business owners time and money by passing legislation exempting tangible personal property valued at $3,500 or less from the personal property tax
Counties were spending more for auditors’ wages than the dollar value brought in on tangible personal property with value of $3,500 or less. Small business-owners spend valuable time away from work while an auditor is on site. This NFIB sponsored legislation becomes a win win for both the small-business owner in lost work time and the counties in saved wages.

Supported changes in health insurance for easier access and cost reduction
NFIB supported the passage of a bill that would require the Utah Public Employees Health Plan to provide a health savings account option to the employees of the state. This will hopefully force the hand of the Insurance carriers to produce a product that will work for small business also. HSAs allow the employer and employee to contribute to an account in which the employee chooses how to spend their health-care dollars. These are offered along with high deductible health plans.

Kept payroll costs down by preventing a minimum-wage increase
The minimum wage was never intended to be a living wage. NFIB defeated three bills that would have increased the state minimum wage. Small-business owners prefer that the market drive wages. If an employer is not successful at monitoring what he needs to pay his work force, turnover will be high and production will decrease while new employees are constantly being trained. Most businesses in the state pay higher than the minimum wage already.

Prevented $250 million in future taxes to fund state employee benefits
NFIB/Utah stopped a massive tax increase that would have been used to cover the costs of sick leave for state employees. State employee sick leave costs have shot from $8.8 million in 2001 to $16.3 million and were projected to quadruple in the next 10 years to $250 million. Passage of HB 213 brings the costs of government under control and prevents tax increases to cover future costs of employee benefits.

Defeated a $76 million tax increase, limiting local government’s taxing authority
NFIB/Utah helped defeat a bill that would have given local governments more taxing authority. This bill would have resulted in a one-fourth percent increase in the sales tax to fund highways and transit projects. SB 183 was stripped of the sales tax increase, saving local businesses a great deal of tax money — as much as $76 million.

 

Related Content: Small Business Victories | Utah

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