Font ResizeWhat are Utahns doing to make it through the recession?
Based on tax collection data released by the state this week, it would appear that folks are buying a whole lot more beer and cigarettes.
But state and industry officials say that's just not the case.
The Utah Tax Commission's quarterly revenue report -- comparing July through September of this year to the same period last year -- showed a 780 percent jump in beer tax revenues. And cigarette licenses and fees shot up 9,555 percent.
However, commission spokesman Charlie Roberts quickly doused the apparent cigarette spike -- an increase from $3,117 to $300,898 -- saying an accounting error had occurred.
"There was miscoding and $260,000 got put in the wrong spot," Roberts said. "This was caught and is being corrected."
And Scott Stevens, finance director for the state Tax Commission, said the apparent beer boost will come back into line with expectations in subsequent reports. Part of the discrepancy will be resolved as 40 percent of the revenue is moved from the state's general fund to a restricted account where, by statute, it must go. Officials also say that collections reported in a later quarter last year may have been accelerated in this report.
"I've been told by beer wholesalers that sales are actually down," said Jim Olsen, president of the Utah Food Industry Association, "which is ironic, because state liquor sales have gone up."
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The Tax Commission's summary for the first quarter indicated an 18.5 percent decrease overall in beer, cigarette and tobacco tax revenues.
Stevens said to stay tuned for future reports.
"Towards the end of the fiscal year, you can make a better assumption."
