February 17, 2023
The Utah Legislature will contemplate H.B. 101 1st. Sub Meals Gross sales Tax Amendments, which removes the state portion of gross sales tax on meals, contingent on eradicating the constitutional earmark for revenue tax income, as specified by S.J.R. 10.
Utahns have knowledgeable lawmakers that eradicating the gross sales tax on meals is a precedence. Whereas Utah’s financial system is powerful, the state’s present finances construction creates funding constraints. At the moment, the Utah Structure mandates all revenue tax income be used just for sure gadgets.
If the Legislature passes H.B. 101 1st. Sub and voters approve the change throughout the 2024 common election, eliminating the state gross sales tax on meals would end in a $200 million whole tax discount.
“The best way our finances is structured, revenue tax is used solely to fund increased and public schooling, kids and other people with disabilities,” stated Sen. Ann Millner. “Schooling has and can proceed to be a precedence in our state. Over the previous few years, now we have made historic investments in schooling, exhibiting our dedication to Utah college students and the schooling group. Below the present finances construction, gross sales tax on meals helps to fund all state wants, together with Medicaid, homeless applications, public security, courts, parks, and so forth. To proceed funding these wanted applications with out the gross sales tax on meals, we might want to restructure the finances.”
“Utah is the one state within the nation that has these kinds of finances constraints,” stated Rep. Mike Schultz. “We are able to’t take away the gross sales tax on meals and proceed to effectively steadiness the state finances. I’m excited to provide residents the chance to make the ultimate determination on the poll field subsequent November.”
H.B. 101 1st. Sub is scheduled to be heard within the Home Income and Taxation Committee on Tuesday, February 21, at 8:00 a.m. in State Capitol Constructing Room 445.
February 17, 2023