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Senate approves phased reduction in state sales tax on food
Summary
The Senate passed a third substitute for House Bill 109 to phase down the state sales-tax rate on food and create a vendor assistance fund; the measure passed on a roll call after extended debate over tax policy and implementation costs.
The Utah Senate on Feb. 28 approved a third substitute for House Bill 109 that phases down the state sales-tax rate on food items defined by the streamlined sales tax rules, establishes a vendor assistance fund for programming costs, and preserves local tax bases.
Senator Wadhams (S18) described the bill’s elements, including an implementation date and a $6,000,000 program to help vendors reprogram point-of-sale systems; he later corrected a fiscal-note figure after consulting the tax commission. Opponents, including Senator Thomas and Senator Hatch, called the measure "bad tax policy" and warned of unintended consequences for small businesses and bonding/ revenue implications. Supporters argued the reduction will help lower-income households cover necessities.
After debate and a roll-call vote under suspension of rules, the clerk reported final passage of the third substitute House Bill 109 with a recorded tally of 22 yes, 5 no, and 2 absent. The bill will be signed in open session and returned to the House for enrollment.
