Rural interests, including those of the Uintah Basin, were given focus during Friday’s Rural Legislative Caucus that takes place weekly during the legislative session. While HB441 had already been tabled for the current session, rural broadcasters still took the opportunity to go on the record, each sharing information about the devastating effects that the proposed sales tax on services would have on their rural communities. Especially relevant to the Uintah Basin economy was the estimate that a sales tax on services would add $600,000 dollars to the cost for an oil and gas producer to drill a well in the Uintah Basin and that this added tax doesn’t factor in the service companies that are hired to maintain operations of wells. The emphasis was that this tax could push companies outside Utah to states that are more welcome to industry. Information was also read into the record to show how the sales tax on services would hurt rural cities and counties. The ‘hold harmless formula’ for the proposed tax “gets ugly very quickly” in the Uintah Basin where population is declining. For example, if passed in 2018, Vernal City would have lost $280,000 dollars, Uintah County $344,000 dollars, and Naples City $300,000 dollars in sales tax distribution. Duchesne and Uintah County Commissioners attended in support of the opposition.
Photo Credit: Rep. Christine Watkins – District 69
