POLITICS + GOVERNMENT

A bill eliminating Utah food tax ‘contingent’ on changes to education funding

Feb 17, 2023, 2:30 PM | Updated: Feb 19, 2023, 11:47 am

Sales tax In a joint letter from both houses of the Utah Legislature on Friday, lawmakers announced...

FILE: “More Bread for Utahns!” members Bill Hooper, Sharon Roper and Margo Markowski rally to repeal Utah’s grocery sales tax at the Capitol in Salt Lake City on Thursday, Feb. 9, 2023. (Laura Seitz, Deseret News)

(Laura Seitz, Deseret News)

SALT LAKE CITY — Utah lawmakers have announced a plan to eliminate the state portion of sales tax on food. 

But, under a new pair of bills it would only come off if Utah voters approve amending the state Constitution that requires income tax fund public education, higher education, children and people with disabilities. 

 

Specifically, H.B. 101 First Sub, Food Sales Tax Amendments outlines that the state portion of the food sales tax would come off, but only once voters approve the change to the income tax fund, as outlined in SJR10.  That question to amend Utah’s Constitution would be posed to voters on the ballot in November of 2024.

Lawmakers say passing this bill, and the subsequent passage of the amendment, means $200 million dollars in revenue would come out of Utah’s state sales tax and needs to be made up in some other way.  That’s why they are pushing for “flexibility” with the income tax fund. 

“Sales tax on food helps to fund all state needs,” said Sen. Ann Milner, R-Ogden, which would include things like Medicaid, homeless programs, water, public safety, courts, parks, and other state needs.

“We have no other choice,” she said.

Talks with education groups

Lawmakers have been in discussions with education groups in an effort to get them on board. They each hope to get their wish list. Lawmakers want to free up the income tax fund and education groups want more funding for education that’s long term and stable.

Lawmakers say the income tax fund has grown at “10 times the rate” of the General Fund (where sales tax goes) and so having access to that money, they argue, will help balance out some of the state’s other needs.  

The two sides had yet to strike a deal Friday but with only two weeks left in the legislative session, lawmakers said they needed to release their plan.

Education community objections

Sen. Kathleene Riebe, D- Salt Lake City, told reporters Friday education groups feel like this plan is a “bait and switch.”

“They are not going to support this,” Reibe said. “I think some of the things they’ve asked for is a floor — at how low we can go [in funding] and a cap, and so we’d like to see us not be at the bottom of the [Weighted Pupil Unit] level,” she said. 

“A lot of them just feel a little unsteady about this.”

She added that they would also like to see a longer trend of stability in education funding. Reibe argues that having the earmark on the income tax gives them that.

The legislature has started to create what they see as the start of more stability. A recent bill puts some education funding in the base budget, meaning it’s required to be funded every year. There have also been asks from appropriations that the money include accounting for inflation, increasing the WPU by 6%, money for equalization, money for at risk students, and all-day kindergarten.

But Reibe argues that those laws could be subject to change, not guaranteed in the constitution like the funding is now. 

“It seems very unsteady and a little unknown,” she said.

Milner said some of her conversations with education stakeholders has been to see if they’d be on board with establishing a framework enshrined in Utah’s Constitution. 

“…that says, we’re going to establish a funding framework and a Stabilization Fund.”

Reibe said if that were to happen, it could ease a lot of these fears.  

 “I think that is something that has been explored or could be explored.”

The bill is sponsored by Rep. Judy Rohner, R-West Valley City. It is scheduled to be heard by the House Revenue and Taxation Committee on Feb. 21.

Related reading from the 2023 Uta Legislative Session:

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Politics + Government

political text messages...

Michael Camit

Dodging political scammers during election year

During elections years, political scammers will target voters to try to get their personal information warns the BBB.

26 minutes ago

Rep Phil Lyman shown, lyman dei comments came under scrutiny...

Emma Keddington

Rep. Phil Lyman defends post correlating DEI policies with Baltimore bridge collapse

Rep. Phil Lyman is defending a post made Tuesday, that said Diversity, Equity, and Inclusion (DEI) policies had something to do with the Baltimore bridge collapse. 

1 day ago

Former senator Joseph Lieberman...

Jake Tapper, CNN

Former Sen. Joe Lieberman dies at 82

Former Democratic vice presidential nominee and Sen. Joe Lieberman has died, according to a statement from his family.

2 days ago

rep phil lyman shown, he made comments about the bridge collapse in maryland...

Heather Peterson

LISTEN: Utah Rep. Phil Lyman blames Baltimore bridge collapse on DEI

Rep. Phil Lyman said the bridge collapse is because of "governors who prioritize diversity over the wellbeing and security of citizens."

3 days ago

WASHINGTON, DC - JANUARY 4: A view of the U.S. Supreme Court on Thursday morning January 4, 2024 in...

MARK SHERMAN

Supreme Court again confronts the issue of abortion, this time over access to widely used pill

Two years after the Supreme Court overturned Roe v. Wade and cleared the way for bans or severe restrictions on abortion in many Republican-led states, abortion opponents on Tuesday will ask the high court to ratify a ruling from a conservative federal appeals court that would limit access to the medication mifepristone, which was used in nearly two-thirds of all abortions in the United States last year.

4 days ago

File - The Instagram logo is seen on a cell phone in Boston, USA, Oct. 14, 2022. Instagram has star...

Associated Press

New Instagram feature limits display of political content

Instagram has started an automatic clamp down on the amount of political content appearing in its users' feeds.

4 days ago

Sponsored Articles

Mother and cute toddler child in a little fancy wooden cottage, reading a book, drinking tea and en...

Visit Bear Lake

How to find the best winter lodging in Bear Lake, Utah

Winter lodging in Bear Lake can be more limited than in the summer, but with some careful planning you can easily book your next winter trip.

Happy family in winter clothing at the ski resort, winter time, watching at mountains in front of t...

Visit Bear Lake

Ski more for less: Affordable ski resorts near Bear Lake, Utah

Plan your perfect ski getaway in Bear Lake this winter, with pristine slopes, affordable tickets, and breathtaking scenery.

front of the Butch Cassidy museum with a man in a cowboy hat standing in the doorway...

Bear Lake Convention and Visitors Bureau

Looking Back: The History of Bear Lake

The history of Bear Lake is full of fascinating stories. At over 250,000 years old, the lake has seen generations of people visit its shores.

silhouette of a family looking over a lake with a bird in the top corner flying...

Bear Lake Convention and Visitors Bureau

8 Fun Activities To Do in Bear Lake Without Getting in the Water

Bear Lake offers plenty of activities for the whole family to enjoy without having to get in the water. Catch 8 of our favorite activities.

Wellsville Mountains in the spring with a pond in the foreground...

Wasatch Property Management

Advantages of Renting Over Owning a Home

Renting allows you to enjoy luxury amenities and low maintenance without the long-term commitment and responsibilities of owning a home.

Clouds over a red rock vista in Hurricane, Utah...

Wasatch Property Management

Why Southern Utah is a Retirement Paradise

Retirement in southern Utah offers plenty of cultural and recreational opportunities. Find out all that this region has to offer.

A bill eliminating Utah food tax ‘contingent’ on changes to education funding