It looks like tax cuts are back on the menu!
Utah's income tax collections rebounded dramatically in December after lagging behind projections for the first five months of the fiscal year.
In December, individual income tax collections were down 3.3% from the previous year, which was more than 6% behind projections.
New numbers show that individual income tax collections are now 5.1% higher than last year over the first six months of the current fiscal year.
Corporate taxes are still more than 13% behind where lawmakers thought they would be.
Combined income and corporate tax collections are on track to meet the expected year-over-year growth rate of 3%.
That's good news for lawmakers who are targeting another income tax cut this year. In November, they set aside $165 million to pay for yet another round of tax reductions.
Under Utah's Constitution, income and corporate taxes can only fund public and higher education and certain social services. Any reduction in the tax rate is paid for out of future revenues that could go toward those parts of the budget.
Legislative leaders will discuss the new revenue numbers during the Executive Appropriations Committee meeting on Tuesday afternoon.
