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SALT LAKE CITY -- The Senate gave preliminary approval Friday to a bill that would lower the overall state sales-tax rate while increasing the sales tax on food.
Since the state functions on sales-tax revenue, sponsoring Sen. Stuart Adams, R-Layton, said the downturn in the economy has affected the stability of the state's revenue.
Adams said in good years the system works, but in bad years it doesn't. "A sales tax on food maintains this stability."
SB270 would increase the sales tax on food and lower the tax rates on everything else. The sales tax on food was lowered three years ago under then-Gov. Jon Huntsman Jr.
Senate Minority Leader Ross Romero, R-Salt Lake, called the bill a "dangerous proposition" because of the broad effect it would have on struggling Utah families.
"It makes absolutely no sense," he said.
The measure passed 16-9 and faces a final vote before it can move to the House.
E-mail: averzello@desnews.com
