Gov. won't raise plan to tax services this session

Gov. won't raise plan to tax services this session



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SALT LAKE CITY (AP) -- Gov. Jon Huntsman says he won't advance a plan this legislative session to tack sales taxes onto professional services like legal and accounting advice. But he may bring up the plan again in a year.

Huntsman had raised the idea as a way to cover the cost of eliminating the state sales tax on food. But he has now proposed raising the tax on a pack of cigarettes from 70 cents to $3 to get rid of the 1.75 percent state food tax.

Huntsman says he'll likely revisit the plan during the next legislative session, after he's seen a final Tax Review Commission report on taxing services. Huntsman says a sales tax on services would likely be coupled with some other tax decrease.

He says taxing services is the next step in tax reform.

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Information from: Deseret News

(Copyright 2009 by The Associated Press. All Rights Reserved.)

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