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Utah Governor Wants To Add New Taxes, Cut Overall Rate By $200M

SALT LAKE CITY (AP) — Utah Gov. Gary Herbert wants to add new sales taxes on services while cutting the overall rate to the tune of $200 million, part of a reform effort he says will be a "heavy lift" but is essential for the state's economic future.

Herbert outlined the idea Thursday while introducing his plan for the state's $19 billion budget.

He wants to lower the overall tax rate to less than 4 percent while introducing new taxes on things that could range from limousine rentals to haircuts and plastic surgery. He says the plan will ease the tax burden on the middle and lower classes while shoring up a shrinking sales-tax base.

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His plan serves as a starting point for state lawmakers who will meet in January and pass a budget for Herbert to later approve.