January 13, 2015


State & Local Taxes in 2015


Utah Tax Code Features

Progressive Features

• Requires the use of combined reporting for the corporate income tax

Regressive Features

• Personal income tax uses a flat rate

• Fails to provide non-elderly taxpayers with refundable income tax credits to offset sales, excise, and property taxes

• State sales tax base includes groceries, though taxed at a lower rate

• Local sales tax bases include groceries

Tax Changes Enacted in 2013 & 2014

• No significant developments

ITEP Tax Inequality Index

According to ITEP’s Tax Inequality Index, Utah has the 34th most unfair state and local tax system in the country. States with regressive tax structures have negative tax inequality indexes, meaning that incomes are less equal in those states after state and local taxes than before (See Appendix B for state-by-state rankings and more details).

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