| Show 0 Against 0 For Official Ballot Title: Shall a law be enacted to remove state and local sales taxes from food except food prepared for immediate consumption and food sold through vending machines? Initiative IIMMIMMINIMMIllal A REMOVAL OF STATE AND LOCAL SALES TAX FROM FOOD Impartial Analysis Food actually purchased through the food stamp program Initiative A eliminates sales taxes on food except "food normally prepared for immediate consumption on or off the premises of the retailer and food sold through vending machines" is currently exempt from sales taxes and would continue to be exempt whether or not Initiative A is approved by voters Sales taxes would still be paid on all non—food items in grocery stores In Utah sales of both food and non—food items rentals and some services such as repairs are taxed The state rate is 5 and the Utah Transit Authe county and municipal rate is 114 is the where imposition of this tax rate has been thority rate The communities of Alta Brian resort voters approved by Head Park City and Springdale may charge an additional I rate In addition the revenue generated by a 164 rate on the state portion and a 164 rate on the county and municipal portion is earmarked to the Utah Sports Authority to build Winter Olympic facilities Effective Date 1 Initiative A takes effect July State Municipalities and Counties Utah Transit Authority Utah Sports Authority TOTAL In analyzing Initiative A the following definitions must be considered: Includes resort communities I "Food" is defined by Initiative A as "food for human consumption which is eligible for purchase with food coupons issued by the United States Department of Agriculture regardless of whether the retailer from whom the food is purchased or the purchaser participates in the Food Stamp Program" "Retailer" is defined in current law as a "person enwho is selling regularly organized retail business gaged to the user or consumer and not for resale" 2 in a is not 1991 Fiscal Impact The removal of sales taxes on food would reduce government revenues by approximately $113000000 each year The annual breakdown is as follows: If food is removed from the sales tax base the amount of money generated from sales taxes would be reduced thereby reducing the amount of money for use by the state counties municipalities resort communities the Utah Transit Authority and the Utah Sports Authority 3 "Immediate consumption" nor by Initiative A 1 defined in current law 15 $90000000 18400000 4000000 600000 $113000000 |
