Task Force Considers Eliminating Food Sales Tax

Task Force Considers Eliminating Food Sales Tax

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SALT LAKE CITY (AP) -- A state representative wants to eliminate sales tax on unprepared food and raise it for everything else.

Stephen Urquhart made the proposal at a legislative tax reform task force meeting today.

Under his proposal, sales tax would be eliminated on items like bread and milk. To help make up for the 260 (M)million dollars in revenue the state would lose, he proposes increasing sales tax on other items to six point three-five percent.

That's point six percent more than it is now. Urquhart says that would raise an additional 216 (M)million dollars and give Utah residents a 44 (M)million dollar tax break.

But the Utah League of Cities and Towns says eliminating sales tax on food would be detrimental to municipal budgets that depend on sales tax revenues.

The task force will take up the proposal and others at another meeting Monday.

(Copyright 2005 by The Associated Press. All Rights Reserved.)

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