Senate approves limited textbook sales-tax exemption aimed at few off-campus bookstores

Senate Bill 69, sponsored by Senator Maine, passed the Utah Senate after a debate over whether a sales-tax exemption intended for university bookstores should extend to a small number of off‑campus, for‑profit stores.

Maine told senators the measure aims to restore an equal playing field for three off-campus bookstores that she said were left vulnerable after a 2008 tax commission opinion that exempted on‑campus university bookstores from sales tax on textbooks. ‘‘We have three to save,’’ Maine said, arguing the stores provide local jobs and contribute to their communities.

Senator Valentine pressed the sponsor on the fiscal implications and whether it was appropriate to extend an exemption to for‑profit entities. ‘‘Isn’t it true that the bookstores you’re speaking of are for‑profit companies?’’ Valentine asked. He cited committee testimony that one store reported $1.6 million in textbook sales last year and questioned whether the fiscal note accounted for lost revenue if the exemption were applied broadly.

Maine responded that the fiscal analyst relied on information from the tax commission and that the aim was to preserve small businesses competing against university-affiliated bookstores.

The Senate approved SB69 on a roll-call vote (21 yea, 5 nay, 3 absent). The bill will be forwarded to the House for action.

Next step: SB69 proceeds to the House of Representatives; fiscal impacts cited by opponents will be subject to review as the bill continues through the legislative process.