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https://doi.org/10.26419/res.00338.001 AARP Poll of Utah Registered Voters Ages 18+: Opinions on Current State Tax Reform Issues Report Prepared by Jennifer Sauer, AARP September 2019 www.aarp.org/UtahTaxReform

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Page 1: AARP ges 18+: Issues - Join & Explore the Benefits · would tolerate the state taxing elective medical services such as plastic surgery (67%), dry cleaning services (66%), lodging

https://doi.org/10.26419/res.00338.001

AARP Poll of Utah Registered Voters Ages 18+:Opinions on Current State Tax Reform Issues

Report Prepared byJennifer Sauer, AARPSeptember 2019www.aarp.org/UtahTaxReform

Page 2: AARP ges 18+: Issues - Join & Explore the Benefits · would tolerate the state taxing elective medical services such as plastic surgery (67%), dry cleaning services (66%), lodging

https://doi.org/10.26419/res.00338.001

About AARP

AARP is the nation’s largest nonprofit, nonpartisan organization dedicated to empowering Americans 50 and

older to choose how they live as they age. With nearly 38 million members and offices in every state, the

District of Columbia, Puerto Rico, and the U.S. Virgin Islands, AARP works to strengthen communities and

advocate for what matters most to families with a focus on health security, financial stability and personal

fulfillment. AARP also works for individuals in the marketplace by sparking new solutions and allowing

carefully chosen, high-quality products and services to carry the AARP name. As a trusted source for news and

information, AARP produces the nation's largest circulation publications, AARP The Magazine and AARP

Bulletin. To learn more, visit www.aarp.org or follow @AARP and @AARPadvocates on social media.

Acknowledgments

Numerous individuals participated in the design of this survey and the planning and implementation of this

study. Special thanks go to Danny Harris, Alan Ormsby, and Laura Polacheck of the AARP Utah state office;

Barrie Tabin, AARP State Advocacy for Financial Security and Consumer Affairs; Kristin Keckeisen, AARP

Integrated Campaigns; Jeffrey Love, Rebecca Perron, and Tanesha Hill, AARP Research. Alan Newman

Research (ANR) fielded, collected, tabulated, and weighted the data for this study. Many thanks and

appreciation go to Katie Camden and staff at ANR.

Page 3: AARP ges 18+: Issues - Join & Explore the Benefits · would tolerate the state taxing elective medical services such as plastic surgery (67%), dry cleaning services (66%), lodging

AARP Poll of Registered Voters in Utah ages 18+: Opinions on Current Tax Reform Issues 1

TABLE OF CONTENTS

Executive Summary …………………………………………………………………………………………………………………. Page 2

Detailed Findings …………………………………………………………………………………………………………………….. Page 3

Utah State Priorities and Services …………………………………………………………………………………………… Page 3

What issues do Utah registered voters view as TOP priorities in the state? ……………………………………….. Page 3

Utah registered voter perception of state services and programs ………………………………………………………. Page 4

Tax Reform In Utah …………………………………………………………………………………………………………………. Page 5

Utah State Income Tax ……………………………………………………………………………………………………………… Page 5

Perceptions of who is paying fair share of state income tax .………………………………………………………. Page 5

Constitutional requirement around state income tax revenue ……………………………………………………. Page 6

Social Security benefits tax …………………………………………………………………………………………………….. Page 7

Type of state income tax structure views as more fair ………………………………………………………………. Page 8

Utah State Sales Tax ………………………………………………………………………………………………………………….. Page 9

Sales tax and grocery food ……………………………………………………………………………………………………… Page 9

Applying a sales tax to services not currently taxed in Utah…………………………………………………………. Page 10

Changing other sales taxes and fees ………………………………………………………………………………………… Page 11

Implications …………………………………………………………………………………………………………………………….. Page 13

Methodology …………………………………………………………………………………………………………………………… Page 14

Annotated Questionnaire ………………………………………………………………………………………………………. Page 15

Page 4: AARP ges 18+: Issues - Join & Explore the Benefits · would tolerate the state taxing elective medical services such as plastic surgery (67%), dry cleaning services (66%), lodging

AARP Poll of Registered Voters in Utah ages 18+: Opinions on Current Tax Reform Issues 2

Executive Summary

Utah is currently experiencing a balanced budget and adequate funding for many state and local programs and services,but there are concerns about a growing structural imbalance that could generate larger income tax revenues than salestax revenues in the years ahead. Both nationally and locally, economies are experiencing a shift in consumer spendingon more services like ride sharing or online services/shopping and downloads rather than actual goods or products. InUtah, this shift presents a particular challenge because the state does not tax most services, and all state income taxrevenue, by state constitutional law, is earmarked for public education. Findings from this research show that Utahregistered voters are open to tax reform in the state including taxing certain services, changing the current sales taxrates on certain products, considering fees on certain products, and eliminating the income tax on Social Securitybenefits. Moreover, many Utah voters think a graduated income tax structure seems fair. AARP Utah commissionedthis survey to better understand where voters stand on these issues and proposals that might help to remedy thisgrowing structural imbalance.

Some key findings from this survey include:

Two-thirds (67%) of all registered voters in Utah want the state to maintain the constitutional requirementdedicating all state income revenue to public education, but they are somewhat divided about the funding goingto only K-12 (40%) or to both K-12 and state colleges and universities (57%).

Most (70%) Utah registered voters support eliminating the existing tax on Social Security benefits and anotherseven in ten (72%) would support (strongly/somewhat) keeping the existing tax on Social Security benefits solong as there is an offsetting tax credit for both existing and future retirees.

Utah registered voters are divided when it comes to considering a state income tax structure. Half (49%) of allvoters say a graduated income tax structure where high income earners would pay a higher tax rate than lowerincome earners is fair but nearly as many (48%) say the current flat rate state income tax system where allincome earners pay the same tax rate is fair.

Half (50%) of all voters in Utah would support a lower sales tax rate of 3.1 percent (down from the current 4.85percent) and its application to consumer services not currently taxed in Utah. In fact, at least three in five voterswould tolerate the state taxing elective medical services such as plastic surgery (67%), dry cleaning services(66%), lodging services like hotels or home/accommodation sharing (65%), and professional consulting services(60%). Services opposed by most voters to a new sales tax are medical insurance premiums (84% opposed) andrent (79% opposed).

Registered voters in Utah show great support for changing the current sales tax rates on certain products,namely “sin” taxes. The majority of voters support the state increasing the current tax rate on e-cigarettes andvaping devices (83%), tobacco (80%), and beer and alcohol (79%). In fact, two-thirds strongly support increasingthe tax rates on e-cigarettes and vaping products (66%) and slightly fewer strongly support increasing the taxrate on tobacco (64%). In addition, over half (54%) of all registered voters in Utah support a state sales tax onsugary drinks with over one in four (27%) saying they strongly support this proposal.

AARP commissioned Alan Newman Research (ANR) to field this poll among registered voters ages 18 and older in Utah inAugust 2019 on behalf of the AARP state office in Utah. This survey gauged the opinions of Utah registered voters onvarious state tax reform issues and proposals. ANR completed 903 telephone interviews (292 via landline and 611 viacell phone) yielding a maximum statistical error of ± 3.3% at the 95% level of confidence. Data are weighted by age,gender, and race/ethnicity according to 2018 U.S. Census Bureau Current Population Survey (CPS) statistics for Utahvoters ages 18+.1 See full methodology on page 14. This report can also viewed at www.aarp.org/UtahTaxReform.

1 Age and political party differences described in this report are statistically significant by p<.01 or p<.05. Given these statistical significance tests, differences wheretwo or more age or political party subgroup cells contain 100 or more respondents are reported. If two or more subgroup cells contain less than 100 respondents,statistical differences are not reported (see page 14 in full report). Data in the report and the annotated survey reflect half rounding up from .5 and so may not alwaysadd up precisely to 100 percent. For more information on the survey, the data, or methodology, contact Jennifer Sauer at [email protected] or 202-434-6207.

Page 5: AARP ges 18+: Issues - Join & Explore the Benefits · would tolerate the state taxing elective medical services such as plastic surgery (67%), dry cleaning services (66%), lodging

AARP Poll of Registered Voters in Utah ages 18+: Opinions on Current Tax Reform Issues 3

Utah State Priorities and Services

What issues do Utah registered voters view as TOP priorities in the state?

At least six in ten Utah registered voters ages 18 and older view public education, health care, and air quality as toppriority issues for the state to address over the next few years. In fact, well over two-thirds view public education as atop priority issue and exactly two-thirds view health care as a top priority issue. Air quality is a top priority issue for sixin ten voters, and at least half of all registered voters say that affordable housing and prescription drugs costs should betop priority issues for Utah to address in near future. Voters are more divided about transportation/ infrastructure,higher education costs, and Medicaid expansion being top or medium priority issues. In fact, more voters view state taxreform, medical marijuana, student loan debt, redistricting, and utility costs as medium priority issues than top priorityones. Inland Port is viewed by over a third as a low priority issue and half of all voters in Utah think prison relocation is alower priority issue for the state to address over the next few years.

Level of Priority: Issues Facing Utah Voters 18+(n=903)

Among each of the top five top priority issues, Democrat voters in Utah are more likely than Republicans orIndependents to view each as top priority issues for the state to address over the next few years. Moreover, except forair quality and affordable housing costs, Independent voters are also more likely than Republicans to view the otherthree as top priority issues. Public education is a top priority issue for voters ages 30 to 49 more so than those ages 50to 64. While prescription drug costs significantly increases with age as a top priority issue, health care is top priorityacross the age groups. Younger voters in Utah ages 18-29 are more likely than older voters to view air quality andaffordable housing as top priority issues.

Top PriorityAge

Top priorityPolitical Party

Top 5 Priority Issues in Utah 18-29n=162

30-49n=248

50-64n=132

65+n=125

Democratn=175

Republicann=372

Independentn=242

Public education 72% 71% 63% 70% 79% 66% 67%

Health care -- -- -- -- 79% 60% 67%

Air quality 69% 59% 52% 57% 86% 42% 63%

Affordable housing 66% 53% 45% 52% 67% 44% 56%

Rx drug costs *40% 49% 55% 71% 61% 50% 53%

*indicates that number of respondents in cell was less than 100--indicates no statistically significant differences and/or number of respondents in 2 or more group cells is less than 100

13%

14%

23%

24%

27%

33%

34%

40%

43%

46%

53%

53%

59%

66%

69%

32%

27%

47%

30%

36%

36%

45%

36%

39%

42%

33%

35%

29%

25%

24%

50%

36%

29%

39%

33%

30%

18%

23%

15%

10%

13%

12%

11%

8%

6%

0% 20% 40% 60% 80% 100%

Prison relocation

Inland Port

Utility costs

Redistricting/political boundaries

Student loan debt

Medical marijuana

State tax reform

Medicaid expansion

Higher education costs

Transportation/infrastructure

Prescription drug costs

Affordable housing

Air quality

Health care

Public education

Top Priority Medium Priority Low Priority

Page 6: AARP ges 18+: Issues - Join & Explore the Benefits · would tolerate the state taxing elective medical services such as plastic surgery (67%), dry cleaning services (66%), lodging

AARP Poll of Registered Voters in Utah ages 18+: Opinions on Current Tax Reform Issues 4

Utah registered voters value their state services and programs.

Public safety and K-12 public education are of top importance to voters with eight in ten saying each state service is veryimportant to them, followed by at least two-thirds saying that health care services for children and low-income familiesand mental health care services in the state are very important. Home health care services for older and disabledpersons is viewed as very important to just under two in three Utah voters and over half say that state and localinfrastructure and mass transit are very important services. Though very important to at least a third of all voters inUtah, more view public higher education and state or local parks and recreation services as somewhat important.

Level of Importance: Utah Services and Programs to Maintain(n=903)

Voters ages 50 and older and Republicans are more likely than younger and Democrat voters to say the state’s publicsafety services are very important to them. K-12 public education, mental health, and health care are viewed as veryimportant services by more younger voters and Democrats than those ages 50 and older and Republicans orIndependents. However, Independents are also more likely than Republicans to view health care services as veryimportant. Voters of all ages and significantly more Democrats than Republicans view homecare services to older ordisabled residents as very important state services.

Very importantAge

Very importantPolitical Party

Top Very ImportantUtah State Service

18-29n=162

30-49n=350

50-64n=212

65+n=179

Democratn=175

Republicann=372

Independentn=242

Public safety 79% 76% 86% 84% 76% 86% 76%

K-12 public education 84% 81% 74% 77% 90% 78% 78%

Mental health care 81% 72% 63% 63% 81% 67% 68%

Health care services 73% 68% 62% 62% 84% 59% 67%

Home care services -- -- -- -- 76% 60% 61%

*indicates that number of respondents in cell was less than 100--indicates no statistically significant differences and/or number of respondents in 2 or more group cells is less than 100

36%

45%

54%

62%

66%

70%

79%

80%

50%

42%

38%

31%

27%

25%

16%

17%

11%

9%

6%

4%

4%

3%

3%

4%

3%

0% 20% 40% 60% 80% 100%

State/local parks and recreation

Public universities/colleges

State/local infrastructure

Home care services for older and disabled

Health care services for children/low income families

Mental health care services

K-12 public education

Public safety

Very important Somewhat important Not very important Not at all important

*blanks indicate 2% or less respondents

Page 7: AARP ges 18+: Issues - Join & Explore the Benefits · would tolerate the state taxing elective medical services such as plastic surgery (67%), dry cleaning services (66%), lodging

AARP Poll of Registered Voters in Utah ages 18+: Opinions on Current Tax Reform Issues 5

Tax Reform in Utah

Keeping key revenue sources sufficient and balanced often involves changes to a current tax structure. As shown in theearlier chart, one-third (34%) of Utah voters think that state tax reform should be a top priority issue for the state toaddress in near future and almost another half (45%) say it should be a medium priority. There are many proposalsunder consideration in Utah to help keep the states key revenue sources sufficient and balanced in the near future.Proposals tested in this survey include changes to the state constitutional requirement around income tax earmarks,changing the state tax structure from a flat-tax rate to a graduated income tax structure, adding a sales tax on variousservices, changing the sales tax rate, and changing the sales tax on groceries.

Utah State Income Tax

Who is (or isn’t) paying their fair share in state income tax?

As in many states and federally, different segments of the population pay different income tax rates for a variety ofreasons and therefore each group experiences difference levels of tax burden. When asked to consider the tax burdenof certain groups in Utah, registered voters clearly view themselves, middle-income families, low-income families, andlocal small businesses as paying about or more than their fair share of state income tax. In fact, roughly one-third ofvoters view each of these groups as paying more than their fair share. Higher income families and large corporations areviewed by most Utah voters as paying less than their fair share of state income taxes.

Voter Opinion of State Income Tax Burden on Specific Groups(n=903)

0% 20% 40% 60% 80% 100%

Not sure

Pay LESS than their fair share

Pay MORE than their fair share

Pay ABOUT their fair share

Self and family, 62%Low-income families, 44%Middle-income families, 55%High-income families, 35%Local small businesses, 51%Large corporations, 27%

Self and family, 32%Low-income families, 31%Middle-income families, 37%High-income families, 17%Local small businesses, 35%Large corporations, 10%

Self and family, 4%Low-income families, 17%Middle-income families, 3%High-income families, 42%Local small businesses, 4%Large corporations, 54%

Self and family, 2%Low-income families, 8%Middle-income families, 4%High-income families, 6%Local small businesses, 10%Large corporations, 8%

Page 8: AARP ges 18+: Issues - Join & Explore the Benefits · would tolerate the state taxing elective medical services such as plastic surgery (67%), dry cleaning services (66%), lodging

AARP Poll of Registered Voters in Utah ages 18+: Opinions on Current Tax Reform Issues 6

Utah voters ages 30 to 49 and those ages 65 and older and Republicans are more likely than voters ages 18 to 29 or 50to 64 and Independents to say that they and their families pay about their fair share in taxes. However, voter age doesnot differ among those who think low-income families, middle-income families or small businesses pay about their fairshare in income tax, but political party affiliation does – Republicans and Independents are significantly more likely thanDemocrats to say low-income families pay about their fair share in state income tax. Voters of all ages and Democratsand Independents, more so than Republicans, believe high-income income families and large corporations pay less thantheir fair share of state income taxes.

Age Political Party

Groups of tax payers whopay about their fair share

18-29n=162

30-49n=350

50-64n=212

65+n=179

Democratn=175

Republicann=372

Independentn=242

Voter and their family 55% 67% 54% 67% 60% 66% 58%

Low-income families -- -- -- -- *33% 50% 47%

Age Political Party

Groups of tax payers whopay less than fair share

18-29n=162

30-49n=350

50-64n=212

65+n=179

Democratn=175

Republicann=372

Independentn=242

High-income families -- -- -- -- 66% 30% 43%

Large corporations -- -- -- -- 78% 38% 60%*indicates that number of respondents in cell was less than 100--indicates no statistically significant differences and/or number of respondents in 2 or more group cells is less than 100

Utah voters support keeping constitutional requirement that income tax revenue go to K-12 education

Utah’s state constitution includes a requirement that all revenue generated from state income taxes go directly to publiceducation. Amending or eliminating this constitutional requirement would allow state income revenues to helpmaintain and create other state programs and services. Consistent with their view of education as a top priority issuefor the state to address, and the high importance they place on public education, Utah voters clearly want the state tomaintain dedicated revenues to public education, particularly K-12. Most voters support maintaining the constitutionalrequirement, with two in five saying they strongly support maintaining it. Indeed, just under two-thirds of all votersindicate that not enough state funds are dedicated to public education.

Level of Support/Opposition:Utah Should Maintain State Income Tax Revenue

Earmark for Public Education(n=903)

Utah Voter Opinion on State FundsToward Public Education

(n=903)

Registered voters in Utah show no significant variation by age or political party affiliation (or the number of respondentsin each response category is too small to report) with respect to their level of support for the state maintaining theincome tax earmark for public education. However, voters younger than 50 and Democrats are more likely than olderand Republican or Independent voters to say not enough funds are put toward public education (Age: 18-29: 69%; 30-49: 68%; 50-64: 57%; 65+: 50% / Political Party: Democrat: 76%; Republican: 55%; Independent: 63%).

7%

10%

16%

40% 27%

0% 20% 40% 60% 80% 100%

Not sure

Strongly oppose

Somewhat oppose

Strongly/Somewhatsupport

67%Support

MORE thanenough

11%JustENOUGH

22%

NOT enough62%

Page 9: AARP ges 18+: Issues - Join & Explore the Benefits · would tolerate the state taxing elective medical services such as plastic surgery (67%), dry cleaning services (66%), lodging

AARP Poll of Registered Voters in Utah ages 18+: Opinions on Current Tax Reform Issues 7

Utah voters are divided about the state constitutional requirement including public higher education

Currently, the state constitutional requirement to direct all state income tax revenue to public education includes publiccolleges and universities. While over half of all registered voters in Utah report that all state income tax should go to allpublic education including higher education, two in five believe this constitutional requirement should only direct stateincome tax funds to public K-12 education.

Utah Voter Opinion on Public Education Allocation of State Income Tax Revenue(n=903)

57% of Utah voters think:

All state income tax revenue shouldbe allocated to public education K-12and public colleges and universities

40% of Utah voters think:

All state income tax revenue shouldbe used only for public education K-12

There are not enough respondents to report age or political party differences among Utah voters’ opinion of stateincome tax going toward only to K-12 public education. However, young voters and Democrats are more likely thanthose ages 30-49 and Republicans or Independents to indicate that state income tax funds should support all publiceducation (Age: 18-29: 63%; 30-49: 52%; 50-64: 57%; 65+: 59% / Political Party: Democrat: 69%; Republican: 49%;Independent: 59%).

Eliminate the state income tax on Social Security benefits or allow more retirees to claim the tax credit

Social Security benefits income are taxed at the same rate as all other income in Utah – 4.95 percent – and the revenuegoes toward public education. Lower income retirees receive a small tax credit each year for the Social Security taxesthey pay but this credit is being phased out for future retirees. After hearing some proposals to change the state incometax on Social Security benefits to help keep state revenue sources sufficient and balanced in the years ahead, mostvoters support (strongly/somewhat) the state eliminating it (70%) or keeping the state income tax on Social Securitybenefits but allowing more individuals to claim the tax credit (72%). In fact, nearly half of all voters strongly supporteliminating the tax altogether.

Level of Support/Opposition: State Income Tax on Social Security Benefits(n=903)

10%

31%

47%

27%

41%

23%

28%

12%

15%

28%

9%

10%

0% 20% 40% 60% 80% 100%

KEEP state income tax on Social Security benefits AS IS

KEEP state income tax on Social Security benefits BUTALLOW MORE to claim tax credit

ELIMINATE state income tax on Social Security benefits

Strongly support Somewhat support Somewhat oppose Strongly oppose

Page 10: AARP ges 18+: Issues - Join & Explore the Benefits · would tolerate the state taxing elective medical services such as plastic surgery (67%), dry cleaning services (66%), lodging

AARP Poll of Registered Voters in Utah ages 18+: Opinions on Current Tax Reform Issues 8

Older voters and Republicans are more likely than those younger than age 50 and Democrats or Independents tostrongly support eliminating the state tax on Social Security income for all retirees in the state. Likewise whencombining those who strongly support with those who somewhat support this proposal, those ages 50 and older differmost significantly from the youngest age group, and again, Republicans are more likely than Democrats or Independentsto support eliminating this tax altogether.

Age Political Party

Preference for Income Taxon Social Security Benefits:Eliminate Altogether

18-29n=162

30-49n=350

50-64n=212

65+n=179

Democratn=175

Republicann=372

Independentn=242

Strongly Support *26% 41% 58% 64% *35% 54% 42%Strongly/Somewhat support *60% 69% 73% 76% 60% 76% 62%

*indicates that number of respondents in cell was less than 100--indicates no statistically significant differences and/or number of respondents in 2 or more group cells is less than 100

Voters who show support or opposition for keeping the current tax rate on Social Security benefits and credit as it is donot differ by age or political party or the numbers in each subgroup are too small to report. Likewise regarding voterswho support or oppose keeping the tax but allowing future retirees to claim the tax credit.

Utah Voters Are Divided on Preferred Type of State Income Tax System

Utah implemented a flat-rate income tax in 2008 that remains in place today. While some believe that this type of taxsystem is fair and equitable because everyone pays the same rate, it can be regressive depending on the types ofexemptions and deductions in the tax base. After hearing a broad description of their current flat-rate income taxsystem and a description of a graduated income tax structure, Utah voters are evenly split in their opinion of which taxsystem they view is fairer.

Utah Voter Opinion: Type of State Income Tax System Viewed as Fair(n=903)

49% of Utah voters think:

a graduated income tax structure is more fairwhere high income earners pay a higher tax

rate than lower income earners

48% of Utah voters think:

a flat-rate income tax system is more fairwhere everyone pays the same income

tax rate no matter what they earn

Democrats in Utah are significantly more likely than Republicans or Independents to say that a graduated income taxsystem seems fairer to them, but Republicans are more likely than Democrats or Independents to view a flat-rateincome tax system as more fair. Independents are more likely than Republican voters to think a graduated income taxsystem is fairer and more likely than Democrats to say a flat-tax income tax system seems fairer to them.

Age Political Party

State Income Tax System ThatSeems More Fair

18-29n=162

30-49n=350

50-64n=212

65+n=179

Democratn=175

Republicann=372

Independentn=242

Flat-rate Income Tax System -- -- -- -- *20% 62% 50%

Graduated Income Tax System -- -- -- -- 79% 36% 47%*indicates that number of respondents in cell was less than 100--indicates no statistically significant differences and/or number of respondents in 2 or more group cells is less than 100

Page 11: AARP ges 18+: Issues - Join & Explore the Benefits · would tolerate the state taxing elective medical services such as plastic surgery (67%), dry cleaning services (66%), lodging

AARP Poll of Registered Voters in Utah ages 18+: Opinions on Current Tax Reform Issues 9

Utah Sales Tax

Utah voters are tolerant of the current state sales tax rate on groceries

Currently in Utah, the sales tax on groceries is 1.75 percent – lower than the general sales tax rate. In considering waysto keep the state’s key revenue sources sufficient and balanced in the future, there have been some proposals to changethis tax: Keep the sales tax just as it is; raise the grocery sales tax and offer a refundable tax credit to low incomefamilies; or eliminate the tax altogether. While most registered voters in Utah oppose raising the current sales tax rateon groceries, many voters show a tolerance for this sales tax. In fact, more indicate a preference to keep the currentsales tax rate on groceries for everyone rather than eliminate it altogether.

Level of Support/Opposition: Raise Sales Tax Rate OnGroceries for All Utahns Equal to Sales Tax on Other Goods

(n=903)

Utah Voter Opinion about Grocery Food Tax(n=903)

Among the almost two-thirds of Utah registered voters who strongly oppose the state raising the sales tax rate ongroceries to be equal to that of other goods, opposition is strongest among those ages 30 and older than among youngervoters. Strongly opposing this proposal is consistent across party lines.

Utah voters who think the state should keep the current sales tax rate on groceries for everyone differ by political partypreferences – Republicans are significantly more likely than Democrats or Independents to have this view. ButIndependents are also more likely than Democrats to want to keep the current grocery food sales tax as is. Eliminatingthe tax altogether on groceries or raising the sales tax rate and providing a refundable tax credit yielded less than 100respondents in two or more age and political party subgroup.

Age Political Party

Utah State Sales Tax onGrocery Food

18-29n=162

30-49n=350

50-64n=212

65+n=179

Democratn=175

Republicann=372

Independentn=242

Strongly Oppose grocery tax *47% 64% 67% 69% 59% 64% 64%

Keep current tax rate for all -- -- -- -- *35% 57% 48%*indicates that number of respondents in cell was less than 100--indicates no statistically significant differences and/or number of respondents in 2 or more group cells is less than 100

2%

63%

11%

7%

17%

0% 20% 40% 60% 80% 100%

Not sure

Strongly/somewhatoppose

Strongly/Somewhatsupport

Strongly support

80%Oppose

2%

16%

33%

49%

0% 20% 40% 60% 80% 100%

Not sure

INCREASE sales tax rate ongroceries/offer tax credit to

low-income households

ELIMINATE sales tax ongroceries altogether

KEEP current sales rate ongroceries for everyone

Page 12: AARP ges 18+: Issues - Join & Explore the Benefits · would tolerate the state taxing elective medical services such as plastic surgery (67%), dry cleaning services (66%), lodging

AARP Poll of Registered Voters in Utah ages 18+: Opinions on Current Tax Reform Issues 10

Utah voters are divided about lowering the sales tax rate and applying it to untaxed services

Utah’s sales tax on consumer goods provides revenuethat supports many state and local services for residentsand their families. However, the state does not imposea sales tax on many services like lawn care or drycleaners. To maintain key revenue sources in the state,there are proposals to change the sales tax rate andstructure. One proposal would be to lower to thecurrent rate from 4.85 percent to 3.1 percent and applythat new rate to services not currently taxed.

When asked about this proposal, half of all registeredvoters in Utah say they would support it and almostanother half say they would oppose it. Voters who showsupport or opposition for this proposal do not differ byage or political party or the numbers in each subgroupare too small to report.

Utah registered voters are open to taxing certain services EXCEPT RENT OR HEALTH INSURANCE PREMIUMS

At least three in five registered voters in Utah support (strongly/somewhat) taxing elective medical services such asplastic surgery (67%)), dry cleaning services (66%), lodging services such as hotels or home sharing services (65%),professional consulting services like public relations or management consulting (60%), and travel agent services. In fact,at least one quarter or more strongly support taxing these services. However, Utah voters are somewhat divided inconsidering a sales tax on services like ride sharing services, hair/barber services, accounting services, landscaping andlawn services, legal services and digital services such as Netflix, Audible, or Spotify. The strongest opposition(strongly/somewhat) to applying a sales tax is with regard to rent (79%) or medical insurance premiums (84%) where atleast two-thirds say they strong oppose each of these proposals.

Level of Support/Opposition: Applying Sales Tax To Services Not Taxed in Utah(n=903)

6%

7%

21%

20%

21%

21%

23%

23%

28%

30%

30%

28%

39%

8%

12%

25%

30%

29%

30%

28%

31%

30%

30%

35%

38%

28%

14%

14%

19%

17%

17%

20%

18%

18%

18%

18%

14%

14%

13%

70%

65%

31%

30%

31%

26%

30%

25%

20%

19%

18%

17%

18%

0% 20% 40% 60% 80% 100%

Medical insurance premiums

Rent

Legal services

Digital services

Landscaping/lawn services

Accounting services

Hair/Barber services

Ride sharing services

Travel agent services

Professional consulting services

Lodging services

Dry cleaning

Elective medical services

Strongly support Somewhat support Somewhat oppose Strongly oppose

Level of Support/Opposition: Lower Current Sales Tax Rateto 3.1 Percent and Apply to Services Not Taxed

(n=903)

8%

24%

18%

19%

32%

0% 20% 40% 60% 80% 100%

Not sure

Strongly/somewhat oppose

Strongly/Somewhat support

43%Oppose

50%Support

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AARP Poll of Registered Voters in Utah ages 18+: Opinions on Current Tax Reform Issues 11

Younger voters are more likely than those ages 65 and older to strongly or somewhat support paying a proposed lowertax rate of 3.1 percent on elective medical services and dry cleaning services. Lodging and professional consultingservices is strongly/somewhat supported across all age groups. Utah voters only differ by their political party affiliationwith respect to dry cleaning services where Democrats show greater overall support for this proposal than Republicansor Independents.

Age Political Party

Strongly/SomewhatSupport Taxing ConsumerServices in Utah

18-29n=162

30-49n=350

50-64n=212

65+n=179

Democratn=175

Republicann=372

Independentn=242

Elective medical services 75% 72% 65% *50% 72% 64% 68%

Dry cleaning services 69% 71% 66% *51% 73% 63% 64%

Lodging services *61% 68% 66% 60% 71% 63% 64%

Professional consulting -- -- -- -- 62% 59% 60%*indicates that number of respondents in cell was less than 100--indicates no statistically significant differences and/or number of respondents in 2 or more group cells is less than 100

Opposition to paying a sales tax on rent or medical insurance premiums is strongest among Utah voters ages 30 andolder than among younger voters. While voters across party lines strongly or somewhat oppose the state adding a salestax to rent, Independents are significantly more likely than Democrats to oppose taxing to medical insurance premiums.

Age Political Party

Strongly/Somewhat OpposeTaxing Consumer Services in Utah

18-29n=162

30-49n=350

50-64n=212

65+n=179

Democratn=175

Republicann=372

Independentn=242

Rent 72% 82% 81% 79% 79% 77% 81%

Medical insurance premiums 68% 89% 87% 81% 78% 84% 85%*indicates that number of respondents in cell was less than 100--indicates no statistically significant differences and/or number of respondents in 2 or more group cells is less than 100

Utah voters show strong support for changing current sales tax rates on certain goods

Data from this survey indicate that voters in Utah largely support (strongly/somewhat) changing the current sales tax orfee structure around many goods. Most support increasing the tax rates on e-cigarettes and vaping products (83%),tobacco (80%), and beer and alcohol (79%). In fact, two-thirds strongly support increasing the tax on e-cigarettes andvaping products and tobacco, and almost half strongly support increasing the sales tax rate on alcohol. Utah registeredvoters are somewhat divided when considering changing the current sales tax rates on tourism services, as well ascreating a sales tax for sugary drinks and increasing state licensing or user fees. Most voters oppose (strongly/somewhat) increasing the gasoline tax (71%) with half saying they would strongly oppose this proposal.

Level of Support/Opposition: Changing Other Sales Taxes and Fees Already in Place(n=903)

9%

15%

20%

27%

44%

64%

66%

18%

29%

38%

27%

25%

16%

17%

20%

22%

21%

14%

11%

6%

6%

51%

32%

19%

30%

19%

11%

9%

0% 20% 40% 60% 80% 100%

Increasing gasoline tax

Increasing state licensing/user fees

Increasing tax on tourism services

Create statewide tax on sugary drinks

Increasing tax on beer and alcohol

Increasing tobacco tax

Increasing tax on e-cigarettes/vaping products

Strongly support Somewhat support Somewhat oppose Strongly oppose

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AARP Poll of Registered Voters in Utah ages 18+: Opinions on Current Tax Reform Issues 12

Utah voters ages 65 and older, Republicans, and Independents are significantly more likely than younger voters andDemocrats to strongly support increasing the sales tax on e-cigarettes and vaping products. Those ages 65 and older andIndependents show stronger support than younger voters and Democrats to strongly support increasing the tax ontobacco products. Increasing the tax on beer and alcohol is strongly supported across all age groups and significantlymore among Republicans and Independents than Democrats.

Age Political Party

Strongly Support changingsales tax or fees on:

18-29n=162

30-49n=350

50-64n=212

65+n=179

Democratn=175

Republicann=372

Independentn=242

e-cigarettes/vaping products *59% 65% 64% 78% 58% 70% 70%

Tobacco 60% 64% 59% 74% 59% 66% 68%

Beer and alcohol -- -- -- -- *33% 54% 41%*indicates that number of respondents in cell was less than 100--indicates no statistically significant differences and/or number of respondents in 2 or more group cells is less than 100

Voters ages 65 and older and Republicans are more likely than the youngest group of voters – those ages 18 to 29 andeither Democrats or Independents to strongly oppose increasing the sales tax on gasoline.

Age Political Party

Strongly Oppose increasingsales tax or fees on:

18-29n=162

30-49n=350

50-64n=212

65+n=179

Democratn=175

Republicann=372

Independentn=242

Gasoline tax *45% 49% 53% 58% *32% 63% 48%*indicates that number of respondents in cell was less than 100--indicates no statistically significant differences and/or number of respondents in 2 or more group cells is less than 100

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AARP Poll of Registered Voters in Utah ages 18+: Opinions on Current Tax Reform Issues 13

Implications Based on the Research

As Utah begins to consider ways to restructure their tax system to better align with current and future consumerspending behavior and maintain key revenue sources, findings from this survey indicate where the state could makesome reforms to the current tax structure that voters may tolerate and what should be maintained.

Utah voters generally agree that all state income tax dollars should be used to fund public educationPublic education K-12 rises to the top of state services in Utah that voters view as very important and one that Utahvoters view as a top priority issue for the state to address over the next few years. This sentiment is made clear by theirsupport of the state maintaining the constitutional requirement that all state income tax revenue be directed only topublic education, and for many that would include public universities and colleges. Moreover, voters in Utah believethat public education in the state does not receive enough funds and so amending or eliminating this constitutionalrequirement to allow revenues to support other state services or programs would not appeal to voters.

Voters want the tax burden on retirement benefits to be reducedFinancial security in retirement is a legitimate concern for many Americans and older voters in Utah are no exception.After hearing some ways in which Utah could make changes to the state income tax on Social Security benefits to helpkey revenue sources remain sufficient and balanced, data shows that most voters support eliminating the tax altogether,with nearly half showing strong support. However, knowing that the state income tax on Social Security benefits in Utahgenerates revenue for public education may account for a similar proportion of voters who are willing to tolerate this taxas long as existing and future retirees can claim a tax credit. Not surprisingly, few voters are supportive keeping this taxas it stands today – at 4.95 percent – with the tax credit being phased out for future retirees.

Utah voters could be open to changes in the state income tax structureAnother tax reform proposal that some believe could help maintain future state services and programs as well asprovide tax relief for lower income households would be to change the current state tax structure from a flat-rate taxsystem to a graduated tax system. In a graduated income tax system, higher income earners would pay a higher tax ratethan lower income earners. Currently, in Utah, all taxpayers pay the same income tax rate regardless of how muchmoney they make and this can present a heavy tax burden on the poor and middle class voters. Data from this surveyshow that voters are somewhat split in their opinion of which system is more fair (49% graduated income tax vs 48%flat-rate income tax). However, other data in the survey further suggest that Utah voters may lean more toward agraduated state income tax system. Well over half say that they and their family, lower and middle-income families, andlocal small businesses are paying their fair share of state income tax but high-income families and large corporations arepaying less than their share in state income tax. And, roughly a third of Utah voters believe that low and middle-incomefamilies are paying more than their fair share.

Voters are willing to make concessions to fund services in their stateAs technology advances, it changes the way the consumers purchase goods and services. As in many states andnationally, Utah is witnessing a shift from consumer spending on goods to purchasing more services. In economies likeUtah’s where sales revenue is a key source of funding essential state programs and services, this shift could have anegative impact. Survey findings show that Utah voters are supportive of some of the proposals tested in the survey tochange the current methods of taxing.

Half of all registered voters in Utah would support taxing services not currently taxed in the state, but only if a lowersales tax rate of 3.1% is applied. When asked about certain services on which they’d be willing to pay a new lower taxrate, elective medical services, dry cleaning, lodging services, and professional consulting services rose to the top fourwith at least one in four voters saying they would strongly support each of these services being taxed. Services such asride sharing, lawn or landscaping, or digital services fared a bit less favorably yielding support for applying a sales taxfrom about half of all voters (with about one in five strongly supporting each). While most Utahans strongly opposeraising the sales tax on groceries, at least three in five are strongly supportive of increasing current sales tax rates on e-cigarettes or vaping products, tobacco, and beer and alcohol. Taxing sugary drinks and tourism services would besupported by at least half of all voters. Many Utah voters are resistant to an increase in state licensing fees and mostwould oppose increasing the gasoline tax.

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AARP Poll of Registered Voters in Utah ages 18+: Opinions on Current Tax Reform Issues 14

METHODOLOGY

In August 2019, AARP engaged Alan Newman Research to conduct a quantitative research study among Utah voters ages18+. Specific topics included voter perception of recent considerations around tax reform that could affect Utahns’pocketbooks (taxes), grocery food tax and Social Security income benefits tax, opinion of the state economy, importanceof various state programs and services, and support/opposition for specific tax changes and proposals. The surveylaunched on August 7, 2019 and closed on August 12, 2019. ANR completed 903 telephone interviews (292 via landlinetelephones and 611 via cell phone). Survey length averaged 18 minutes.

The sample of 903 respondents yields a maximum statistical error of ± 3.3 % at the 95% level of confidence. (This meansthat in 95 out of 100 samples of this size, the results obtained in the sample would be within ± 3.3 percentage points ofthe results obtained had everyone in the population been interviewed.)

Percentages of some questions in this report and the annotated questionnaire may exceed 100% due to rounding upfrom .5 or the use of multiple response question formats. Statistical tests were conducted on the weighted sample todetermine whether observed differences in the tables are statistically significant at the .05 level of significance and atthe .01 level of significance. All data have been weighted by age, gender, and race/ethnicity according to 2018 U.S.Census Bureau Current Population Survey (CPS) statistics for Utah voters ages 18+. Age and political party differencesdescribed in this report. Given the statistical significance tests, differences where two or more age or political partysubgroup cells contain 100 or more respondents are reported. If two or more subgroup cells contain less than 100respondents, statistical differences are not reported. Where subgroup differences are reported, an * denotes that onlythat one subgroup cell contains less than 100 respondents and the other subgroup cells contained robust numbers ofrespondents and the author included a description of the differences. Still, where an * is noted, caution should be usedwhen generalizing that subgroup to the larger Utah registered voter population.

PRODUCTION SUMMARY

Final

NUMBER OF FULL COMPLETES 903

TOTAL NUMBERS RELEASED 32,300

COOPERATION RATE (COOP3) 48.9%

REFUSAL RATE (REF3) 4.9%

RESPONSE RATE (RR3)2 3.3%

2 This response rate formula (RR3) requires the calculation of ‘e’ which is the proportion of cases of unknown eligibility that are estimated toactually be eligible. The following formula was used to determine ‘e’: e = Complete + Terminate Early + Confirmed Household No Answer, Busy,and Answering Machine + Callbacks + Language Barrier / Complete + Terminate Early + Confirmed Household No Answer, Busy, and AnsweringMachine + Callbacks + Language Barrier + Government/Business + Non-Working + Screened Out + Over Quota.

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AARP Poll of Registered Voters in Utah ages 18+: Opinions on Current Tax Reform Issues 15

ANNOTATED QUESTIONNAIRE

2019 UTAH POLL OF REGISTERED VOTERS AGES 18+:OPINIONS ON CURRENT TAX REFORM ISSUES

Market: Utah

Screening Criteria: Age 18+, resident of Utah, registered voter in Utah

18 minutes

67% cell phone sample

n=900

All data have been weighted by age, gender, and race/ethnicity according to 2018 U.S. Census Bureau Current

Population Survey (CPS) statistics for Utah voters ages 18+.

Hello, this is ______ calling from ______, a national opinion research firm. We are not telemarketers and are not trying

to sell you anything. We are interested in your thoughts about important issues facing Utahns. Your views are important

and we would greatly appreciate your participation. Your confidential responses will be summarized and shared.

S1. [ALL] Our study is interested in the opinions of certain age groups. Could you please tell me your age

as of your last birthday? [IN YEARS] ___________ [AGE CODED]

% n=903

0 Under 18 (TERMINATE)

10 18-24

17 25-34

30 35-49

9 50-55

14 56-64

20 65 or older

0 Refused (TERMINATE)

S2. [ALL] And just to confirm, are you a resident of Utah?

% n=903

100 Yes

0 No (TERMINATE)

0 Don’t know/ refused (TERMINATE)

S3. [ALL] What is your 5-digit ZIP code? ______________

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AARP Poll of Registered Voters in Utah ages 18+: Opinions on Current Tax Reform Issues 16

S4. [ALL] And are you registered to vote in Utah?

% n=903

100 Yes

0 No (TERMINATE)

0 Don’t know/ refused (TERMINATE)

S5. [ALL] How often would you say you vote in state and local elections for Governor, Congressional

representatives, and Mayors? Would you say you: always vote in state and local elections, nearly

always vote, sometimes vote, seldom vote, or have never voted in a state or local election?

% n=903

56 Always

24 Nearly always

12 Sometimes

4 Seldom

3 Never

0 Would rather not say (VOL)

1 Not sure (VOL)

0 Refused (VOL)

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AARP Poll of Registered Voters in Utah ages 18+: Opinions on Current Tax Reform Issues 17

Q1. [ALL] I’m going to read a list of issues facing many Utahns today. For each one, please tell me if you

think that issue should be a top priority, medium priority or a low priority issue for the state to address

over the next few years. [RANDOMIZE ORDER OF Q1_A THROUGH Q1_O]

n=903

Top

priority

%

Medium

priority

%

Low

priority

%

Not sure

%

Refused

%

Q1_A. Public education 69 24 6 1 <1

Q1_B. State tax reform 34 45 18 3 <1

Q1_C. Health care 66 25 8 1 <1

Q1_D. Affordable

housing53 35 12 1 <1

Q1_E. Prescription drug

costs53 33 13 1 <1

Q1_F. Air quality 59 29 11 1 <1

Q1_G. Higher education

costs43 39 15 2 <1

Q1_H. Transportation

and infrastructure (such

as roads and bridges)

46 42 10 1 <1

Q1_I. Utility costs 23 47 29 1 <1

Q1_J. Inland Port 14 27 36 22 1

Q1_K. Prison relocation 13 32 50 5 <1

Q1_L. Redistricting or

independent political

boundaries

24 30 39 7 <1

Q1_M. Medical

marijuana33 36 30 2 <1

Q1_N. Medicaid

expansion40 36 23 2 <1

Q1_O. Student loan

debt27 36 33 3 <1

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AARP Poll of Registered Voters in Utah ages 18+: Opinions on Current Tax Reform Issues 18

Q2. [ALL] The state of Utah provides many services and programs for its residents. Please tell me if it is

important or not important to you that Utah continue working to maintain the following state services

and programs. Let’s begin…. Would you say that it is important or not important to you that Utah

maintain [ITEM]? [RANDOMIZE ORDER OF Q2_A THROUGH Q1_H]

n=903

Very

important

%

Somewhat

important

%

Not very

important

%

Not at all

important

%

Not

sure

%

Refused

%

Q2_A. State and local

parks and recreation36 50 11 3 <1 0

Q2_B. Home care

services for older

Utahns or the

disabled such as

meals on wheels,

personal care

assistance,

transportation

services, etc.

62 31 4 2 1 0

Q2_C. State and local

infrastructure such as

bridges and road

maintenance and

repair, mass transit

54 38 6 2 <1 0

Q2_D. Health

services for children

and low income

families

66 27 4 2 <1 0

Q2_E. Utah public

universities and

colleges

45 42 9 4 <1 0

Q2_F. Public safety –

fire and police and

other first responder

rescue

80 17 2 1 <1 0

Q2_G. K-12 public

education79 16 1 3 1 <1

Q2_H. Mental health

care services and

programs

70 25 3 2 <1 0

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AARP Poll of Registered Voters in Utah ages 18+: Opinions on Current Tax Reform Issues 19

Q3. [ALL] In the last 12 months, or since last August, about how much have you heard, read, or seen about

Utah’s current tax system or any tax issues in the state – would you say a lot, some, not that much, or

nothing at all?

% n=903

16 A lot

36 Some

37 Not that much

10 Nothing at all

1 Not sure

0 Refused

Q4. [ALL] Now I’m going to ask you some questions regarding Utah’s income tax. Tell me if you think

each of the groups pay (more than their fair share, less than their fair share, or about their fair share) in

state income tax? [RANDOMIZE ORDER OF Q4_A THROUGH Q4_F]

n=903

Pay more

than their

fair share

%

Pay less

than

their fair

share

%

Pay

about

their fair

share

%

Not

sure

%

Refused

%

Q4_A. Low income families 31 17 44 8 <1

Q4_B. Middle income families 37 3 55 4 <1

Q4_C. High income families 17 42 35 6 <1

Q4_D. You and your family 32 4 62 2 <1

Q4_E. Local small businesses 35 4 51 10 <1

Q4_F. Large corporations or

organizations10 54 27 8 <1

As the economy in Utah changes to depend more on the purchase of services rather than goods, state lawmakers want to

ensure that revenue from key sources such as sales taxes and income taxes remain sufficient and balanced over the years

so they can continue to support essential state services and programs used by its residents. We’d like to ask your opinion

on a few proposals being considered.

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AARP Poll of Registered Voters in Utah ages 18+: Opinions on Current Tax Reform Issues 20

Q5. [ALL] Utah taxes the sales of many consumer goods like cars and clothes. The revenue raised from this

tax helps to support many Utah services and programs such as transportation and infrastructure, and

public safety. However, in Utah, there is no sales tax on many services like haircuts or landscaping.

One proposal is to lower the current sales tax rate from 4.85 percent to 3.1 percent but also apply it to

services that are currently not being taxed in Utah. Would you support or oppose this proposal?

Strongly/somewhat?

% n=903

18 Strongly support

32 Somewhat support

19 Somewhat oppose

24 Strongly oppose

8 Not sure

1 Refused

Q6. [ALL] Now I’d like to read to you some services that are not taxed in Utah. After each, tell me if you

support or oppose taxing that service at the proposed lower rate of 3.1 percent to help the state keep

key revenue sources sufficient and balanced. Let’s begin: Would you support or oppose having to pay

a sales tax for [ITEM] at the proposed lower sales tax rate of 3.1 percent? Would you say you

strongly/somewhat support/oppose? [RANDOMIZE ORDER OF Q6_A THROUGH Q6_M]

n=903

Strongly

support

%

Somewhat

support

%

Somewhat

oppose

%

Strongly

oppose

%

Not

sure

%

Refused

%

Q6_A. Travel agent

services28 30 18 20 3 <1

Q6_B. Dry cleaners 28 38 14 17 3 <1

Q6_C. Landscaping

and lawn services21 29 17 31 2 <1

Q6_D. Professional

consulting services

such as public

relations or

management

consulting

30 30 18 19 4 0

(CONTINUED…)

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AARP Poll of Registered Voters in Utah ages 18+: Opinions on Current Tax Reform Issues 21

(…CONTINUED)

n=

Strongly

support

%

Somewhat

support

%

Somewhat

oppose

%

Strongly

oppose

%

Not

sure

%

Refused

%

Q6_E. Accountant

services21 30 20 26 4 <1

Q6_F. Ridesharing

services such as Uber

or Lyft

23 31 18 25 3 <1

Q6_G. Services

received at beauty

parlors and barber

shops

23 28 18 30 1 <1

Q6_H. Digital

services such as

Spotify, Audible,

Netflix

20 30 17 30 3 <1

Q6_I. Lodging

services such as Air

BnBs

30 35 14 18 4 <1

Q6_J. Legal services 21 25 19 31 3 <1

Q6_K. Rent (IF

NECESSARY, ADD:

rent people would

pay for their

apartment or home)

7 12 14 65 2 <1

Q6_L. Medical

insurance premiums6 8 14 70 2 <1

Q6_M. Elective

medical services

such as plastic

surgery

39 28 13 18 2 <1

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AARP Poll of Registered Voters in Utah ages 18+: Opinions on Current Tax Reform Issues 22

Q7. [ALL] Currently, the sales tax on groceries in Utah is 1.75 percent – lower than the general state sales

tax rate. Another proposal to help keep Utah’s key revenue sources sufficient and balanced in the

years ahead is to raise the sales tax rate on groceries for all Utahn’s so that it would be equal to the sales

tax on other goods in Utah. Do you support or oppose this proposal?

% n=903

7 Strongly support

11 Somewhat support

17 Somewhat oppose

63 Strongly oppose

2 Not sure

<1 Refused

Q8. [ALL] Other ideas have been proposed related to the sales tax rate on groceries. Which of the following

statements best reflects your opinion: (READ LIST) [ROTATE A AND C PER RESPONDENT]

% n=903

33A. Utah should eliminate the state sales tax on groceries altogether and rely on

other ways to raise revenue

49B. Utah should keep the state sales tax rate on groceries at 1.7 percent for

everyone

16C. Utah should raise the sales tax rate on groceries and provide a refundable

tax credit to low income families

2 Not sure (VOL)

<1 Refused (VOL)

Q9. [ALL] Currently, the state’s constitution requires that all money generated from income taxes has to be

dedicated to public education. In your opinion, do you think that public education in Utah receives

just enough, more than enough or not enough funds from state income tax revenues?

% n=903

22 Just enough

11 More than enough

62 Not enough

5 Not sure

<1 Refused

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AARP Poll of Registered Voters in Utah ages 18+: Opinions on Current Tax Reform Issues 23

Q10. [ALL] In general, do you support or oppose Utah maintaining its constitutional requirement to use

state income tax revenue only for public education? Do you strongly/somewhat support/oppose?

% n=903

40 Strongly support

27 Somewhat support

16 Somewhat oppose

10 Strongly oppose

7 Not sure

<1 Refused

Q11. [ALL] As you may know, this constitutional requirement allocates all state income tax revenue to all

public education, including public colleges and universities. Which statement best reflects your view:

[ROTATE ORDER OF A AND B PER RESPONDENT]

% n=903

40A. This constitutional requirement should allow revenue to be used only for

public kindergarten through 12th grade

57

B. This constitutional requirement should allow revenue to be allocated to

both public Kindergarten through 12th grade and public colleges and

universities

4 Not sure (VOL)

<1 Refused (VOL)

Q12. [ALL] As you may know, in Utah, we have what is called a flat-rate income tax system. That is,

everyone in Utah pays the same state income tax rate regardless of how much money they earn. Some

other states have a graduated income tax system where residents pay different state income tax rates—

high-income earners pay a higher rate than lower-income households. Which state income tax system

seems more fair to you? [CODED RESPONSES] [INTERVIEWER – IF NECESSARY, READ A OR B

IF PROMPTED]

% n=903

48A. Flat-rate income tax system– everyone pays the same income tax rate no

matter what they earn

49B. A graduated income tax structure– high-income earners pay higher tax rate

than lower income earners

2 Not sure (VOL)

<1 Refused (VOL)

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AARP Poll of Registered Voters in Utah ages 18+: Opinions on Current Tax Reform Issues 24

Q13. [ALL] In Utah, Social Security benefits are taxed at the same rate as all other income – 4.95 percent and

the revenue is used for public education. Currently, lower income retirees receive a small tax credit

each year for the Social Security taxes they pay but this credit is being phased out for future retirees.

To keep state revenue sources sufficient and balanced in the years ahead, state lawmakers are

considering changes to the way Social Security benefits are taxed and the use of the tax credit. Please

tell me if you would support or oppose the following proposals: [RANDOMIZE ORDER OF A

THROUGH C]

n=903

Strongly

support

%

Somewhat

support

%

Somewhat

oppose

%

Strongly

oppose

%

Not

sure

%

Refused

%

Q13_A. Keep the

state tax on Social

Security income and

keep the tax credit

for existing retirees

but also allow future

retirees to claim the

tax credit

31 41 12 9 8 <1

Q13_B. Keep things

as they are – keep the

state tax on Social

Security benefits,

keep the tax credit

the same for current

lower income

retirees, and allow

the credit to be

phased out for new

retirees

10 27 28 28 6 <1

Q13_C. Eliminate the

state tax on Social

Security income

altogether for all

retirees in Utah

47 23 15 10 5 <1

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AARP Poll of Registered Voters in Utah ages 18+: Opinions on Current Tax Reform Issues 25

Q14. [ALL] To ensure that revenue from key sources such as sales tax and income tax remain sufficient and

balanced over the years and continue to support essential state services and programs used by its

residents, Utah lawmakers may consider changes to other taxes or fees already in place or new ones.

Please tell me if you would support or oppose [ITEM]? [RANDOMIZE ORDER OF Q14_A

THROUGH Q14_G]

n=903

Strongly

support

%

Somewhat

support

%

Somewhat

oppose

%

Strongly

oppose

%

Not

sure

%

Refused

%

Q14_A. Increasing

the gasoline tax9 18 20 51 2 <1

Q14_B. Increasing

the tobacco tax64 16 6 11 2 0

Q14_C. Increasing

the tax on beer and

other alcohol

44 25 11 19 2 <1

Q14_D. Increasing

the tax on tourism

services like rental

cars and hotels

20 38 21 19 2 <1

Q14_E. Increasing

the state licensing

and user fees such as

hunting licenses and

state park fees

15 29 22 32 2 0

Q14_F. Increase the

tax on e-cigarettes

and vaping products

66 17 6 9 2 0

Q14_G. Create a

statewide tax on

sugary drinks like

soda

27 27 14 30 2 <1

Page 28: AARP ges 18+: Issues - Join & Explore the Benefits · would tolerate the state taxing elective medical services such as plastic surgery (67%), dry cleaning services (66%), lodging

AARP Poll of Registered Voters in Utah ages 18+: Opinions on Current Tax Reform Issues 26

The following questions are for classification purposes only and will be kept entirely confidential.

D1. [ALL] What is your current marital status? (READ LIST)

% n=903

68 Married

5 Not married, living with partner

1 Separated

6 Divorced

6 Widowed

15 Never married

<1 Not sure (VOL)

1 Refused (VOL)

D2. [ALL] What is the highest level of education that you completed? (READ LIST AS NEEDED

UNLESS/UNTIL STOPPED)

% n=903

1 0-12th grade (no diploma)

15 High school graduate (or equivalent)

16 Post-high school education (no degree)

20 2-year college degree

27 4-year college degree

4 Post-graduate study (no degree)

18 Graduate or professional degree

<1 Not sure (VOL)

<1 Refused (VOL)

D3. [ALL] Which of the following best describes your current employment status? Are you…? (READ LIST

UNLESS/UNTIL STOPPED)

% n=903

9 Self-employed full-time

4 Self-employed part-time

43 Employed full-time

11 Employed part-time

17 Retired and not working at all

4 Unemployed and looking for work

10 Or are you not in the labor force for other reasons

<1 Not sure (VOL)

<1 Refused (VOL)

Page 29: AARP ges 18+: Issues - Join & Explore the Benefits · would tolerate the state taxing elective medical services such as plastic surgery (67%), dry cleaning services (66%), lodging

AARP Poll of Registered Voters in Utah ages 18+: Opinions on Current Tax Reform Issues 27

D4. [ALL] Are you of Hispanic, Spanish, or Latino origin or descent?

% n=903

7 Yes

92 No

<1 Not sure

1 Refused

D5. [ALL] What is your race? [READ LIST UNLESS/UNTIL STOPPED]

% n=903

92 White or Caucasian

1 Black or African American

1 American Indian or Alaska Native

1 Asian

1 Native Hawaiian or other Pacific Islander

3 Other (record)

<1 Not sure (VOL)

2 Refused (VOL)

D6. [ALL] Which political party do you tend to identify with? Would you say (Independent, Republican,

Democrat), or none of these? [RANDOMIZE ORDER OF 1-3; KEEP 4 LAST]

% n=903

19 Democrat

41 Republican

27 Independent

11 None of the above

<1 Not sure

2 Refused

D7. [ALL] How would you characterize your political views? (READ LIST) [Alternate Order – half go

from 1 to 5, other go from 5 to 1]

% n=903

18 Very conservative

24 Somewhat conservative

32 Moderate

15 Somewhat liberal

8 Very liberal

<1 None of the above/ something else (record)

2 Not sure

1 Refused

Page 30: AARP ges 18+: Issues - Join & Explore the Benefits · would tolerate the state taxing elective medical services such as plastic surgery (67%), dry cleaning services (66%), lodging

AARP Poll of Registered Voters in Utah ages 18+: Opinions on Current Tax Reform Issues 28

D8_1. [ALL] We realize income is a private matter and so rather than ask you anything specific about your

income, I’d like you to please just let me know if your household’s income before taxes in 2018 was less

than $50,000 or more than $50,000. Was it…? (READ LIST)

% n=903

34 Less than $50,000

61 More than $50,000

1 Exactly $50,000

0 Don’t know/ not sure (VOL)

4 Refused (VOL)

D8_A. [IF D8_1=Less than $50,000] Was it…? (READ LIST)

% n=311

7 Less than $10,000

15 $10,000 to less than $20,000

22 $20,000 to less than $30,000

20 $30,000 to less than $40,000

27 $40,000 to less than $50,000

5 Don’t know (VOL)

3 Refused (VOL)

D8_B. [IF D8_1=More than $50,000] Was it…? (READ LIST)

% n=561

18 $50,000 to less than $60,000

13 $60,000 to less than $70,000

11 $70,000 to less than $80,000

7 $80,000 to less than $90,000

9 $90,000 to less than $100,000

12 $100,000 to less than $125,000

7 $125,000 to less than $150,000

6 $150,000 to less than $200,000

6 $200,000 or more

2 Don’t know (VOL)

8 Refused (VOL)

That is all the questions we have for you. Thank you for time and have a nice evening.

Page 31: AARP ges 18+: Issues - Join & Explore the Benefits · would tolerate the state taxing elective medical services such as plastic surgery (67%), dry cleaning services (66%), lodging

AARP is the nation’s largest nonprofit, nonpartisan organization dedicated to empowering Americans 50 andolder to choose how they live as they age. With nearly 38 million members and offices in every state, theDistrict of Columbia, Puerto Rico, and the U.S. Virgin Islands, AARP works to strengthen communities andadvocate for what matters most to families with a focus on health security, financial stability and personalfulfillment. AARP also works for individuals in the marketplace by sparking new solutions and allowingcarefully chosen, high-quality products and services to carry the AARP name. As a trusted source for news andinformation, AARP produces the nation's largest circulation publications, AARP The Magazine and AARPBulletin. To learn more, visit www.aarp.org or follow @AARP and @AARPadvocates on social media.

For more information on this issue in Utah, contact Laura Polacheck at 801-567-2643 or [email protected]. This summary can found online at www.AARP.org/UtahTaxReform. For more information on the methodology or the survey, contact Jennifer Sauer at 202-434-6207/[email protected]. More AARP research can be viewed by going to https://www.aarp.org/research.