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Republican lawmakers are acting quickly to draft a package of tax-reform bills for the 2017 session, Senate President Wayne Niederhauser, R-Sandy, said Friday.

But public agencies, including schools, shouldn't expect a surge in new revenue, Niederhauser said. The changes, if enacted, would initially be revenue-neutral by coupling lower tax rates with a broader tax base.

"It actually spurs more revenue in the long run," Niederhauser said. "But it also creates a better foundation upon which to build the tax structure."

Niederhauser did not disclose specifics, but he said an "action item" for the Senate's GOP caucus would be a restoration of the sales tax on food, combined with a general decrease in the sales tax rate.

In 2006 and 2007, Utah's state sales tax on food was cut from 4.75 percent to 1.75 percent, part of tax reform backed by then-Gov. Jon Huntsman.

Since then, lawmakers have frequently discussed restoring the food tax, with opponents often critiquing those proposals as an undue burden on Utah's poor. People with lower incomes spend a greater portion of their pay on essentials like food.

But Niederhauser said Friday that the loss in state revenue from the tax cut diminished the state's ability to fund social services and other support efforts for Utah's low-income residents.

He said lawmakers are looking to decrease the state's 4.7 percent general sales tax rate, with the food tax increasing to that same level.

"The people we're trying to help, the indigent here in Utah, were actually hurt by taking the sales tax off food," Niederhauser said.

Beyond the sales tax on food, Niederhauser said bills are being considered that could alter the state's income and gas taxes. Those bills, intended for passage this year, would be followed by a review over the summer of Utah's tax exemptions and credits.

In the House — which historically has blocked efforts to restore full sales tax on food — Majority Leader Brad Wilson, R-Kaysville, said the Republican Caucus in a closed-door meeting Thursday expressed general support for a broad reform package.

"There has been a lot of really serious discussion about tax reform. But until we get into the nitty-gritty, it's hard to tell exactly where people are going to be," he said.

Republican House leaders are in favor of a revenue-neutral tax overhaul, depending on its components, but there is hesitation among some caucus members.

"But in the context of a broad tax reform package, everyone seems open to it," he said. "That's what they expressed yesterday in caucus. So we'll just work through it."

Sen. Gene Davis, D-Salt Lake City, said Democrats are yet not familiar with the GOP's plans. But he added that a discussion of tax reform should include a reduction in exemptions, which dilute the income tax rate from its statutory level of 5 percent to an effective rate of less than 4 percent.

"That's not giving us the amount of money that we need for our public and higher education institutions," Davis said.

Lawmakers have faced additional pressure to address taxes this year with the launch of Our Schools Now, a business community-led initiative that seeks to raise the state income tax rate from 5 percent to 5.875 on the 2018 ballot.

If successful, the initiative would generate roughly $750 million for public education.

But Niederhauser said the state's needs go beyond public schooling. As Utah's population continues to grow, he said, there is a need for investments in buildings, transportation, education and other government services.

He said it's a problem beyond the ability of a single Legislature to solve. Lawmakers raised the gas tax and statewide property tax two years ago, he said, and it is time for the current members of the House and Senate to review state funding.

"This will be our contribution," Niederhauser said. "But each Legislature is going to need to address this growing need."

Lawmakers are looking to allocate roughly $390 million in new one-time and ongoing state revenue this year, an uptick announced Friday from earlier budget estimates.

But the current level of legislative funding requests totals $540 million, according to Sen. Jerry Stevenson, R-Layton, the Senate's budget chairman.

"This doesn't mean that we're going to go out and go on a spending spree," Stevenson said of the additional funding.

Niederhauser said the state is seeing positive economic growth, but that growth is at times insufficient to keep up with increased demand.

"I think it's a robust year, but we have tremendous needs," Niederhauser said. "If we lived in a state that wasn't growing, $300 million would be a big deal."

Twitter: @bjaminwood

— Reporter Lee Davidson contributed to this report.