The Latest: Bill raising food sales tax dies before launch


Save Story
Leer en español

Estimated read time: 2-3 minutes

This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

SALT LAKE CITY (AP) — The Latest on a proposal to raise the sales tax on food (all times local):

8 p.m.

Utah's House Speaker and Senate President say they're dropping a plan to raise the sales tax on food because it won't stabilize tax collections like they thought it would.

Speaker Greg Hughes and Senate President Wayne Niederhauser told reporters that economic models they looked at Monday afternoon showed that raising the sales tax on groceries, which people buy even in a recession, doesn't offset the volatility of collections of sales tax on other purchases, such as cars or televisions, which drop off in recessions.

They said food sales only accounts for 11 percent of all sales tax collected.

Legislative leaders had said they were looking at raising the food sales tax from 1.75 percent to about 4.4 percent.

Niederhauser and Hughes says legislators will take a deep dive into Utah's tax policies over the summer.

___

6:40 p.m.

Legislative leaders are abandoning plans to pass a last-minute proposal raising the sales tax on food and lowering the overall sales tax rate.

Greg Hartley, chief of staff for House Speaker Greg Hughes, said in a text message Monday night that legislators decided not to move forward with the proposal this session. He says Hughes and Senate President Wayne Niederhauser plan to speak to reporters later Monday night about the proposal.

The bill was never publicly released but Niederhauser said earlier Monday that legislators were looking to lower the state sales tax to 4.4 percent, down from 4.75 percent, and raise the sales tax on groceries to that level. It's currently at 1.75 percent.

Critics say the proposal would disproportionately impact the poor and was being rushed through the Legislature days before lawmakers adjourn for the year.

___

2:40 p.m.

Legislative leaders say they plan to hold a public hearing Tuesday night on a proposal to raise the sales tax on food and lower the overall sales tax rate.

Senate President Wayne Niederhauser says the change would help stabilize Utah's sales tax collection and ensure there's money for social service programs and other government spending even in an economic downturn.

Critics say the proposal disproportionately impacts the poor, who spend more of their income on food, and is being rushed through the Legislature days before lawmakers adjourn for the year.

The proposal had not yet been publicly released by early Monday afternoon but Niederhauser says it will likely lower the state sales tax to about 4.4 percent, down from 4.75, and raise the sales tax on groceries to that level. It's currently at 1.75 percent.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Most recent Business stories

Related topics

Business
The Associated Press
    KSL.com Beyond Series
    KSL.com Beyond Business

    KSL Weather Forecast

    KSL Weather Forecast
    Play button