Board Backs Reinstating 4.7% State Food Tax

Summary

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A plan to reinstate the full state sales tax on food received the endorsement of a tax advisory board Thursday and is on its way to the Legislature and governor's office.

The idea to repeal tax cuts levied in the 2006 and 2007 legislative sessions that led to the current food tax rate of 1.75 percent has met with mixed reviews from both legislators, who are facing an $850 million budget shortfall in the coming session, and advocates for low-income Utahns who say an unprecedented number of residents are struggling to make ends meet in the dire economy. Raising the tax is estimated to bring some $145 million in new revenue.

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Extract

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Board Backs Reinstating 4.7% State Food Tax

Rep. Kay McIff, R-Richfield, is proposing legislation to take the food tax back to the full state rate of 4.7 percent while seeking to balance i...

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