SALT LAKE CITY — A bill being pushed in the upcoming legislative session by House Republican leaders seeks to cut the tax Utahns pay at the pump for gasoline.
"We have got a bill that we're working on that we think we can cut the gas tax by 50% — put $200, $300, $400 in the pockets of an average everyday Utahn," Rep. Cal Roberts, R-Draper, who is running the bill for the House Majority Caucus, said in an interview with FOX 13 News. "That's money that they can spend on next Christmas. That's money that they can spend on their next vacation."
The bill, which is still being drafted, would slash the gas tax for consumers and turn around and impose it on refineries. Lawmakers have expressed frustration at gas prices being lower in other states than in Utah — especially when down the street from the Utah State Capitol they can see refineries.
"As a state, we produce one and a half times the amount of fuel we consume," Rep. Roberts said. "So we are a net export state, and yet our prices are so much higher."
But the gasoline tax pays for a lot of road repairs and lawmakers know they'd get an earful from constituents if those potholes aren't filled or I-15 starts to fall apart. So Rep. Roberts said he wants to see the bill ultimately be "revenue neutral" by cutting the price for consumers and instead impose the tax on gas and oil exports at the refinery and oil company level.
Utah's refineries export fuel to other states, some of whom have started to curtail their own refineries. Rep. Roberts said he believed it wouldn't ultimately be passed on to consumers because it would also apply to out-of-state exports.
"The Utah taxpayer has supported the oil and gas industry for decades. Tax exemptions, tax breaks, tax subsidies. We've got the lowest, most competitive tax regime in the entire region the state of Utah for oil and gas. Our gas tax? It's one of the highest," he said. "So what we think we ought to do is try to negotiate a better deal for Utahns, make sure that we're getting a fair deal at the pump, and thinking about shifting that burden away from the Utah taxpayer and to have it be more more fairly shared amongst industry."
The bill has the blessing of House Speaker Mike Schultz, R-Hooper. Rep. Roberts said he has already been receiving pushback from oil companies and refineries. Many declined to comment to FOX 13 News directly about the proposed legislation. The Utah Petroleum Association, an industry group representing many of the fuel companies, signaled its concerns with the bill.
"All Utahns want lower prices in every aspect of our lives, whether that’s at the gas pump, at the grocery store, or in housing prices. Any attempt to alter the state’s gas tax and other related taxes will have significant financial implications for the state of Utah, the risks of which should be transparently and robustly debated," the group said in a statement.
"We remain committed to conversations with Rep. Roberts, Speaker Schultz and the legislature as a whole to share potential impacts resulting from any proposals the legislature may pursue. Given the scope of this tax issue and the number of stakeholders it affects, we believe it’s important for the proposal to be shared with all impacted parties before we comment further."
The bill will be debated when the Utah State Legislature begins meeting in January.
"We're getting tremendous pushback," Rep. Roberts said. "The reason why is because they know that it's going to come out of their margins and they know that they've gotten a good deal for a long time. And all we want to do is make sure that we're renegotiating a better deal for Utah taxpayers."
