Should Utah grocery stores charge restaurant taxes on some food purchases? Why a state senator says yes

Utah state Sen. Lincoln Fillmore was grabbing a quick meal in the cafe area of the Harmons grocery store in downtown Salt Lake City when he realized he wasn’t charged the additional restaurant tax for his burger and fries. The same thing happened with a sandwich served at a Great Harvest Bread Company store and a soft-serve ice cream cone at a Macey’s supermarket.

Yet, the South Jordan Republican said, the county-imposed 1% tax on food and beverage sales at restaurants was collected on similar foods purchased at fast-food outlets on top of the state and local sales tax that varies by jurisdiction. That sales tax also applies to prepared food items as well as nonfood items sold in grocery stores, but Utah taxes food at a lower rate, 3%.

So Fillmore said he’s seeking a change in the law during the 2025 legislative session to spell out that the restaurant tax must be added to sales made in “portions of a grocery store that function like a restaurant.” He said closing what he sees as a tax loophole used by only a handful of retailers, is “just a question of fairness and equity in the marketplace.”

Read the full story and more from Lisa Riley Roche on deseret.com.