Food Tax Issue Heats Up on Capitol Hill

Food Tax Issue Heats Up on Capitol Hill


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Richard Piatt Reporting"It's important it's right, it's just, and God wants it."

But even that may not be enough for some Utah lawmakers who are holding up a proposal to take the sales tax off food. Utah's Capitol is packed with people who are pushing to have the tax taken away, but members of the Utah Senate say a decision on the proposal is still at least a couple weeks away.

Food Tax Issue Heats Up on Capitol Hill

The Governor likes it. The House has passed it. So now, there is a lot of pressure on Utah Senators to take the sales tax off food, but they're still not sold.

Of all the issues at the Capitol this year, the removal of the sales tax on food is perhaps one of the most emotional. This group of religious leaders is going hungry this day, fasting to make a point.

Daniel Webster, Episcopal Diocese of Utah: "There's something wrong here. And this is a matter of justice. It's not a matter of power."

These folks compare the tax breaks to businesses granted by past legislatures, and ask: Why not a tax break for poor people?

Tim Funk, Crossroads Urban Center: "The truth of the matter is this is probably the most opportune time budget-wise to get rid of this very unfair tax. "

In fact, a billion-dollar surplus has a lot of people believing now is the time for the state to absorb the 166-million dollar hole the food tax removal would leave. For a grocery-buying family, the tax represents between $200-400 a year.

The issue is now in the hands of the Utah Senate, where caution is the order of the day. Senate President John Valentine at least wants to wait until they get a revenue update, next week.

Sen. John Valentine, Senate President: "If we take the sales tax off food, we take 80 percent of our ongoing revenue, which means we'd have to make cuts to health and human services to take the sales tax off food."

Tracee Rosen, Rabbi: "I don't think this is an either/or situation, it's a matter of allocating priorities. And I'm asking the legislature to consider that this is a high priority for many of us in this state."

Emotions are clearly building on this issue as the Legislature rolls on, and it will all play out in the normally subdued Utah Senate. This could be one of those issues that drags on until the end of the session this year. We'll have a better idea of how it will all play out when the updated budget numbers are released in a few days.

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