Utah leaders postponing sweeping tax reform after backlash

Utah leaders are postponing a plan to make sweeping changes to the state’s tax system, including a reduction of the sales-tax rate and the addition of new taxes on services ranging from haircuts to legal work.

After the plan drew a backlash from small businesses and others, Gov. Gary Herbert announced Thursday that lawmakers will study the complicated issue over the coming months and likely return in a special session.

Herbert says it’s still essential to bolster a sales-tax base that’s shrinking as people spend more money on services. Lawmakers are planning to introduce a tax-rate cut along with the new taxes on services when a plan is finalized.

Republican House speaker Brad Wilson says lawmakers plan to meet with people across the state as they study the issue.