Legislators now eye general sales tax cut
And, not surprisingly, the focus is on the sales tax on food.
Senate GOP leaders appear to be writing off the chances for any further reduction in the states's share of the sales tax on food, suggesting instead that lawmakers trim the sales tax on all purchases.
"That's definitely where the Senate is at right now," Senate President John Valentine, R-Orem, told reporters after he and Senate Majority Leader Curt Bramble, R-Provo, both pitched such a cut in postings to the Senate majority Web site, www.senatesite.com.
In fact, Valentine states on the Web site that, "Removing the sales tax from food is not a battle we are going to fight in the next 10 days — chiefly because the Speaker gave us his word he was not going to push it this year."
The Senate president goes on to say he's not ruling out reducing the general sales tax rate or even "some work on a more uniform statewide rate on food" because senators "like cutting taxes where appropriate."
House Speaker Greg Curtis, R-Sandy, though, said his caucus wants the tax on food cut. And, the speaker said, GOP Gov. Jon Huntsman Jr. is also pushing for even more of the food tax to be trimmed.
Last year, lawmakers reduced the 4.75 percent state sales tax on food to 2.75 percent. One tax cut package last week had the state food tax dropping to 0.75 percent.
Curtis acknowledged that when the last year's tax cut package was being put together by House and Senate GOP leaders, he told the Senate leaders that "I would not push" another sales tax off food cut in the 2007 Legislature.
He said he has not. But, Curtis said, "many of my caucus" want the food tax cut again. And he is not going to stand in the way of his caucus' tax-cutting priorities.
Further, after the new revenue estimates for fiscal 2006-2007 came out last week showing another $77 million in ongoing tax revenue next fiscal year, Curtis said the governor made it clear he expects both the income tax and the state food sales tax be part of the tax cut package this session.
"The governor said he wants both. And other House (GOP) leaders, like (House budget chair) Ron Bigelow, have made it very clear to the senators that they want" a further cut on sales tax on food.
Finally, Curtis is backing a bill that has already passed the House that would remove the food sales tax from the base of so-called "boutique tax" — like the mass transit quarter-cent sales tax, or the Zoo, Arts and Parks (ZAP) sales tax, or the resort community tax.
Removing the food tax from those small taxes would result in one food tax rate across the state — since almost all cities, towns and counties have levied a local-option sales tax which places their taxes on food, as well.
"The uniform food sales tax is absolutely not part" of any "deal" not to further cut food taxes in the 2007 Legislature. "That is completely separate," said Curtis.
Valentine said there's greater stability in "adjusting rates rather than adjusting the base." If the state's economy sours, he said, the impact would be lessened by having a broader tax base, that is, one that includes food purchases.
E-mail: lisa@desnews.com; bbjr@desnews.com
You can be the first to comment on this story.