Tax & Accounting Blog

Utah Legislative Proposal to Increase Sales Tax on Food

Indirect Tax, ONESOURCE, Sales and Use Tax February 15, 2013

Utah state Senator John Valentine is negotiating with House Representatives  in the state legislature to increase the sales tax levied on foods to 4.25%.  Currently, food can be taxed at differing rates, based on its preparation and/or packaging.  The proposed sales tax increase would bring all food transactions to the same rate.  This bill was first introduced during interim sessions last year, and Valentine is very hopeful for this session, stating: “The bill is mostly drafted.  We’re still negotiating portions of it with the House. The Senate is pretty much on board. What we’re trying to accomplish is this: a greater stability in the sales tax base that we lost.”