Beehive State News

The Utah State Legislature concluded its 2025 session on March 7. During this session, the National Federation of Independent Business (NFIB) in Utah played a significant role in advocating for small business interests, resulting in the passage of two key bills.

House Bill 106, sponsored by State Representative Kay Christofferson, successfully passed with NFIB's support. This bill reduces Utah’s individual income tax rate from 4.55% to 4.50%. Many small businesses operate as pass-through entities where profits are taxed at the owner's individual income tax rate. The reduction thus provides direct tax savings for these owners. Additionally, HB106 amends corporate franchise and income tax rates and introduces nonrefundable credits for employer-provided child care and dependents under five years old.

Another legislative victory for NFIB was the amendment of House Bill 24, which initially proposed expanding liability for employers hiring individuals with criminal records. Small businesses were concerned about potential lawsuits if such employees committed harmful acts. Following pressure from NFIB, all liability provisions were removed from the final version of the bill.

These legislative changes are seen as positive developments for small businesses in Utah. "HB24’s reduced liability provisions provide crucial protection," while "HB106’s income tax reduction offers direct financial benefits," according to NFIB Utah.

Additionally, House Bill 214 aimed to amend provisions related to the Private Employer Verification Act but did not advance beyond its house of origin.

NFIB Utah expressed gratitude towards its members who actively participated in advocacy efforts during this legislative session. "No one commands the attention of legislators more than small business owners from their districts," highlighting their influence within communities.