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(Salt Lake City-AP) -- A state tax entity has proposed eliminating the sales tax exemption for small farmers who sell their fruits and vegetables independently.
The Utah Tax Review Commission's move is intended to capture the tax money from year-round produce stands who use the exemption to give themselves an advantage over retail grocery stores.
However, some commission members worried that pulling the exemption would overburden small farmers who simply want to sell their extra produce.
Others questioned whether producers would take the time to figure up the tax and include it in the prices of their goods.
Those who didn't would simply lose that portion of their revenue.
The commission passed the proposal yesterday. Now it's headed to the Legislature for review.
(Copyright 2004 by The Associated Press. All Rights Reserved.)
