Utah income tax money goes to schools, but could that change?

SALT LAKE CITY (KUTV) — It’s in the Utah Constitution: All money from state income taxes goes to public and higher education; but now, the state Tax Restructuring and Equalization Task Force is poised to talk about changing that.

“I believe we would be creating further problems,” said Heidi Matthews, president of the Utah Education Association. “I’m hopeful and wish to work collaboratively to find a way (tax reform) so it doesn’t happen on the back of our students.”

The task force, made up of Utah lawmakers, is the same group that has pondered sales tax hikes on food, and taxing services — from financial advice, legal fees, even haircuts — that are currently tax free. Those ideas were met with opposition.

The same would almost certainly happen if the income tax funding stream for public education is altered.

“I think it’s important to call it, not an earmark, but a constitutional guarantee,” said Matthews. "The promise of public education funding was not made lightly.”

The task force will discuss the change, as it has other ideas. Wednesday night, Sen. Lyle Hillyard, R-Cache County, said the panel is considering everything "seriously."

But he said it is too soon to say what will emerge from its discussions.

A change on income taxes for schools would mean an amendment to the Utah Constitution, which would require a two-thirds vote in both the House and Senate, and approval by Utah voters.

The legislative tax restructuring task force is scheduled to meet on Thursday.