SALT LAKE CITY — The gas tax bill that has been a lot of drama on Utah's Capitol Hill and sparked a feud with Idaho failed in a Senate committee on Monday.
House Bill 575 failed on a 2-1 vote in the Senate Revenue & Taxation Committee, over concerns that the cut to the gas tax is only temporary.
The bill is a priority of House Republican leadership, but it has been the subject of a lot of controversy with the Idaho State Legislature chiming in. When it was first proposed in concept, the bill proposed to cut the tax Utahns would pay at the gas pump and impose the same level of taxation on refineries. That prompted Idaho's House Speaker to run a "memorial" (their equivalent of a resolution) criticizing Utah, concerned it would lead to increased fuel prices for Idahoans.
Idaho House Speaker Mike Moyle went so far as to threaten to cut off water flowing from Idaho into the Great Salt Lake in retaliation.
When the bill was finally made public, it imposed a temporary cut on gas prices for Utahns and no tax on refineries. Governor Spencer Cox held a ceremony to sign agreements to increase fuel supply and capacity, which he said would benefit multiple states. He also signed a memorandum of understanding to pledge to work with Idaho on water projects — something that prompted Idaho political leaders to insist they were not giving up their water to Utah.
While believing the feud with Idaho is largely behind them, House Speaker Mike Schultz, R-Hooper, was disappointed in the vote and believed the bill would come back.
"I'm told the Senate is going to reconsider it. I’m pretty sure the majority of the senators want to lower gas taxes," he said.
He found support from Senate Minority Leader Luz Escamilla, D-Salt Lake City, and others in Senate leadership.
"In this one? The people want to see any relief and they feel like this will bring relief," she told reporters on Monday, indicating she would vote yes on the measure.
