Bill would repeal lower Utah tax rate for food

Feb 15 2011 - 3:12pm

SALT LAKE CITY -- A bill in the Utah House would repeal the lower sales tax rate on food only four years after the reduction began.

Republican Rep. Kay McIff of Richfield says the current 1.75 percent tax rate on food would be repealed by the measure introduced Tuesday.

Instead, everything sold in the state would be taxed at a slightly lower rate than the current 4.7 percent. The change will not generate any additional revenue.

In 2007 and again in 2008, the Legislature reduced the sales tax on unprepared food. It did not reduce taxes for food served in a restaurant.

McKiff says a tax credit will be provided to any Utah resident who qualifies for the federal Earned Income Tax Credit. The credit will be 5 percent of their federal taxable income.


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