House approves technical fixes to sales‑tax law aimed at non‑nexus sellers and restaurants

The Utah House approved House Bill 27, a technical cleanup intended to align the state tax code after the session’s bifurcation of the sales tax on food (House Bill 109). Sponsor Representative Ben Ferry said the bill “removes the unequal burden that a non nexus seller has on food” and restores intended definitions so restaurants are treated consistently under the new law.

Ferry said the measure addresses six technical issues, including clarifying that non‑nexus sellers should collect only the state rate plus the lowest common local rate for food (rather than the sum of all local boutique taxes), restoring intended refund eligibility for in‑house programming costs on bifurcated systems, including bundled food products in the Centennial Highway Fund calculation, and separating vendor discount calculations for nexus and non‑nexus filers.

Legislators questioned the bill's practical effects at conventions and trade shows for non‑nexus vendors and whether small, occasional sellers would qualify for the 1.3 percent vendor discount. Ferry replied that vendor discount eligibility depends on filing thresholds (e.g., monthly filers above a threshold) and filing frequency, and that the bill preserves statutory definitions for prepared versus non‑prepared foods. He also noted the bill carries a retroactive component to synchronize code sections with the February effective date of HB 109.

After limited floor questioning and a brief summation from the sponsor, the House opened and closed the vote: "House bill 27, having received 73 yes votes, 0 no's votes, passes this body, and will be referred to the senate for further consideration." The bill will now go to the Utah Senate.