From Deseret News archives:

Single tax rate bill dies

Published: Wednesday, Feb. 9, 2005 11:36 p.m. MST
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A proposed bill that would create a single sales tax rate for all of Utah is dead, at least for this year.

Rep. Wayne Harper, R-West Jordan, said he no longer plans to run the bill this session but instead will create a task force to study a way to implement a single sales tax rate. His designs are to bring the measure back again next year.

The bill's demise means implementation of the Streamline Sales Tax initiative, which would allow cities to charge sales tax on Internet and catalog items, will be pushed back as well.

Harper said Utah Senate leadership had questions about a single sales tax rate.

"I decided not to push that one through until we got their issues resolved," he said.

While cities have pushed for the streamlined tax — so they can collect more sales tax revenues — city leaders, including those in Salt Lake City, have expressed reservations about a single sales tax rate.

In rural cities, where rates are as low as 5.75 percent, sales tax would be increased to roughly 6.5 percent, giving some cities a de facto tax increase, which was unpopular.

"They don't want a tax increase under any circumstance," said Sen. Greg Bell, R-Farmington.

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Also, there was some concern among Salt Lake City leaders that the plan would phase out Salt Lake County's Zoos, Arts and Parks tax and Davis County Recreation, Arts and Parks taxes, which were very popular with residents. Arts groups were also concerned about losing the funding stream.

And while there are issues to be resolved, a single rate will be key in implementing a system to tax Internet and catalog sales, which the Utah League of Cities & Towns is pushing.

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