From Deseret News archives:
New Hill idea: End food tax, collect it on Net sales
In theory, the new idea by state Sen. Curt Bramble, R-Provo, could bridge the ever-growing political breach between state House Republicans and GOP senators — and actually phase out the much-hated food tax.
In practice, there may be a ways to go in working out numerous problems.
Bramble said he was thinking about how to work out the differences in removing the food tax between House Speaker Greg Curtis, R-Sandy, and Senate President John Valentine, R-Orem.
"And I had an epiphany — why not use the (catalog and Web) off-site sales taxes that are owed now, but not being collected, to pay for (repealing) the food tax," Bramble said.
A flurry of telephone calls later and Bramble says all sides are willing to look at his idea.
"I'm willing to look at any realistic ways to get the sales tax off of food," Curtis said. Perhaps the best outcome from Bramble's idea is that leading legislators "are looking at ways of actually making this happen," the speaker added.
Curtis shocked some of his GOP Senate colleagues several weeks ago when he proposed removing the sales tax from unprepared food next year. That would cost the state $166 million in lost revenue and cost local governments another $60 million.
Not wanting to harm human services, public and higher education and other important state programs, Curtis proposed that the state and local sales tax rates on nonfood items be increased slightly. Overall, consumers would still see a $37 million tax cut.
Taken a bit off-guard by the speaker's proposal, Valentine responded with his own: Take the state and local sales tax off of food. Then between growing state revenue surpluses and targeted reductions in state programs, the state could make up the lost $166 million.
"I will not vote for any kind of tax increase," even a nonfood sales tax offset. "I can't support the speaker's plan," Valentine has said. (Valentine couldn't be reached for comment on Bramble's idea Wednesday night.)
Curtis said he had 38 votes, a majority, in the House for his plan.
Political jockeying has already begun, with each side deciding how to run its own bills, forcing the other body into unpleasant votes — such as voting against removing the sales tax from food in one form or another in a legislative election year.
Bramble says his idea "is a way to get us off the hook — get us past the House-Senate stand-off."
To actually work, however, a number of things have to fall into place. "But it's possible," Bramble said.
It would work like this:
• Phase out the sales tax on food over several years.
