The House Revenue and Taxation Committee approved a first substitute to HB106 and then voted to pass the substituted bill with a favorable recommendation.

Representative Christofferson, the bill sponsor, described the proposal as “very straightforward,” saying the first substitute halves the original proposed cut and reduces the individual income tax rate from 4.55% to 4.5%. “The substitute just cuts the income tax cut in half,” he said.

Public testimony split along fiscal lines. Corey Holdaway of the Utah Public Employees Association urged caution, warning that continual revenue reductions could erode state services for health, corrections and parks. “We are concerned about the continual erosion of the revenues that are coming into the state,” he said. Moe Hickey, executive director of Voices for Utah Children, opposed HB106 and cited fiscal note estimates, saying the substitute would decrease state revenue by approximately $118 million in fiscal 2026 and $97.5 million in fiscal 2027 under the substitute scenario.

By contrast, Billy Hesterman of the Utah Taxpayers Association supported the bill as a competitiveness measure, arguing lower income taxes help attract jobs and businesses. He also noted the Legislature had reduced the rate over several years.

Committee debate included procedural maneuvers. Representative Okerlund moved to adopt the first substitute; the committee approved that motion by voice vote. A substitute procedural motion to move the item to the next agenda was offered and a roll call was held; the transcript records a roll-call outcome described by the chair as “failed 3 to 7,” but the record shows inconsistent statements about which members voted yes and no. The committee later proceeded to a substantive voice vote and passed the substituted bill with a favorable recommendation; the committee recorded two members as opposing on the final voice vote.

Supporters argued steady, measured tax reductions promote economic growth and fiscal discipline; opponents urged caution given competing priorities including proposals to remove the Social Security tax and other demands on limited revenue. Representative Christofferson said the Executive Appropriations Committee had signaled funding for a smaller cut and the substitute reflects that compromise.

The substituted HB106 will advance with the committee’s favorable recommendation.