Bill restoring sales tax on food held in committee

SALT LAKE CITY – A House bill raising the sales tax on food and lowering the general sales tax rate was held in committee Wednesday.

HB282, sponsored by Rep. Kay McIff, R-Richfield, would also have provided a low-income tax credit and adjusted some local sales taxes.

McIff said those provisions were not included in another bill restoring the sales taxes on food already passed by the Senate, SB270, and should be considered in the discussion.

"We're going to have this debate in the House now because we have the Senate bill," he said. "I don't oppose the Senate bill per se, but I think these components are very important."

But members of the House Revenue and Taxation Committee voted to hold McIff's bill after several opponents testified it would be a tax hike for most Utahns.

"It may not seem like this tax amounts to much, but when you're just making ends meet, every dollar counts," said Mike Evans of Utahns Against Hunger. "Now is not the time to put an additional burden on low income families."

Lawmakers had reduced the state's sales tax on food to 1.75 percent over the 2006 and 2007 legislative sessions at the urging of former Gov. Jon Huntsman, Jr. The current state sales tax rate is 4.7 percent. 

Supporters of taxing food at the same rate as other items sold argue broadening the tax base will make the sales tax a more stable source of revenue. Neither bill is supposed to raise the amount of sales taxes collected.

McIff had talked earlier in the session about amending his bill to raise some one-time money to help pay for education needs by delaying the decrease in the general sales tax rate. But he said Tuesday he had given up the idea because it had no support.

E-mail: lisa@desnews.com