Slice in meal tax proposed

PROVO — There's no such thing as a free meal — but food cooked at Utah Valley eateries may soon be a little less expensive.

A new proposal would slash a tax on meals at Utah County restaurants that was imposed to pay for the McKay Events Center at Utah Valley State College.

Utah County Commissioner Jerry Grover wants to cut the tax, which was imposed as a temporary tax, from 1.0 percent to .09 percent — a 10 percent reduction.

That would mean a loss of $250,000 for the county government, which collects $2.5 million each year from the tax.

"I've always kind of looked at (the restaurant tax) as something we did to raise money to pay for the special events center," Grover said.

Revenues from the tax — imposed in 1993 — have gone toward repaying the $6 million bond taken out by the county for the construction of the center, which cost about $25 million.

Grover said county officials refinanced its debt on the center and has another 10 years to pay on it.

Since the loan can't be prepaid, and there's more than enough money to pay the amount due each year, Grover said it's a good time to lower the tax rate.

"When I first ran for office, I did a mailer and asked the restaurants what they thought of it. They said they were fine with it as long as the money went for the original need," Grover said. "I feel like it's time to honor that commitment."

Melva Sine, president of the Utah Restaurant Association, said she favors any reduction.

"Anytime you have something that makes a service cost more, people buy it less," Sine said. "What we like is a fair and equitable tax."

Sine said the tax on restaurant food is a very specific tax that targets one industry as opposed to a sales tax that is imposed on everyone.

"No one should be targeted," she said.

The commission will discuss reducing the tax at the regular Tuesday commission meeting which starts at 9 a.m. in the County Administration Building, 100 E. Center, Provo.

---

E-mail: haddoc@desnews.com