Senate weighs $385 million tax hike

Senate Republicans haven't ruled out as much as $385 million in tax increases, including boosting the sales tax on food 3 percent, the tax on gas 5 cents a gallon, and the tax on cigarettes $1.50 a pack.

"There weren't enough votes to take any of them off the table," Senate President Michael Waddoups, R-Taylorsville, said of the list of possible tax hikes discussed during the majority party's closed-door caucus Wednesday.

Waddoups said the list totaled $385 million and also includes raising court, commerce and motor vehicle registration fees as well as tapping water development and tourism marketing funds.

"The process was to tell them how bad the hurt was going to be to some of the their areas and say, 'Here's how to minimize that,' " the Senate president said. The caucus marked the first serious look that GOP senators have taken at raising taxes.

Senate Majority Leader Sheldon Killpack, R-Syracuse said none of the tax increases held much appeal. "To say there was broad support for any one of those items would be a stretch," he said.

Killpack said most senators were not enthusiastic about removing portions of the state's sales tax on food in previous sessions, reducing it to the current 1.75 percent. There's been some question, though, about whether the Senate could produce a veto-proof majority to raise it.

Gov. Jon Huntsman Jr. has no interest in restoring any of the sales tax on food, his spokeswoman, Lisa Roskelley, said. The governor has long supported eliminating the sales tax on food altogether.

Even in this tough budget year, Huntsman has backed a cigarette tax increase to cover the cost of removing the rest of the state sales tax on food, as well as an increase in motor vehicle registration fees that would bring in $50 million annually.

"He's willing to look at different options when it comes to a tax on transportation, but certainly restoring the sales tax on food is not an option," Roskelley said. "He's very selective in any revenue changes he's looking at."

Legislative leaders met the governor Tuesday evening on the state's $1 billion budget shortfall, and Waddoups said they agreed less should be cut than the 15 percent already trimmed by budget committees.