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Restaurant-tax overhaul fails after hours of floor debate on county impacts
Summary
The House debated a proposed change to the restaurant (prepared-food) tax base that would broaden the base and lower the isolated restaurant surcharge; supporters argued for simplification and stability while opponents from rural counties warned of harm to tourism-dependent economies. The second substitute failed 21–52.
Representative Thurston presented second substitute HB 231, a proposal to change the base of the restaurant (prepared-food) tax to a broader sales-tax base and to lower the targeted restaurant surcharge by spreading collections across a wider base. Thurston framed the proposal as a simplification and fairness measure: “The best tax is a neutral tax,” he said, arguing broader base and lower rate would reduce economic distortions and compliance costs while raising an estimated $6 million statewide due to rounding in rate calculations.
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