Businesses are beginning to come forward with horror stories about tens of millions of dollars in "hidden taxes" in the tax reform plan and lingering concerns about the lack of software to implement the new system.

Senate Revenue and Taxation Chairman Curtis Bramble, R-Provo, said Tuesday there is a growing movement to postpone the so-called streamlined sales tax legislation, now set to take effect July 1. The bill, originally scheduled to kick in last July, already had been delayed once.

One idea gaining traction is to make the plan effective only when Congress acts to legalize state taxation of remote sales, said Bramble.

Currently, states can impose a sales tax on Internet and catalog sales, but they have no way to enforce it. A U.S. Supreme Court ruling blocked states from requiring businesses to collect such taxes. But more than a dozen states are moving to get around the ban by adopting a uniform system that would provide incentives for businesses that voluntarily stepped forward to collect those taxes. Supporters believe successful implementation of the scheme will prompt Congress to lift the ban on mandatory sales tax collection beyond state lines.

"I support the streamlined sales tax. I'm concerned, though, about some of these challenges," said Bramble. "Sometimes, what is good nationally may be difficult to pass locally."

During a recent meeting of Bramble's committee, a parade of business lobbyists bemoaned the impact of new proposed taxes on the delivery, installation and repairs of equipment now exempt from sales tax.

Reed Searle, general manager of the Intermountain Power Agency, said streamlined sales tax would add $15 million to $18 million to the cost of construction of a planned third operating unit at the Delta-based power supplier. That would raise costs to municipal utilities that use the electricity.

Morris Jackson, tax director for Questar, said the proposed change could mean an additional $500,000 annual tax bill to the natural-gas utility.

"This slipped through the Legislature without any input by taxpayers," Jackson said.

Mark Buchi, a former state tax commissioner-turned lobbyist, urged lawmakers to postpone the legislation.

"It appears to [impose] tens of millions of dollars in tax increases," said Buchi. "I don't think we need to throw all these companies under the bus and have all these tax increases right now."

State Tax Commissioner Bruce Johnson hopes Utah's streamlined sales tax law can be salvaged through negotiation with affected businesses.

He suggests, for instance, income tax credits to offset new sales taxes on equipment delivery and installation.

"There are legitimate concerns and they need to be taken into account," said Johnson. "But there is nothing in the streamlined sales tax agreement that precludes us from dealing with those issues."

Johnson, who is co-chairman of the group of states implementing the simplified tax system by mutual agreement, fears that if Utah balks, it could jeopardize the whole multistate system.

"There is a possibility that [Utah's postponement] could delay the whole thing," Johnson said, noting that states with at least 54 million residents need to be on board before the streamlined sales tax is triggered. Utah's 2.2 million population could make the difference.

"It would be shortsighted of us to wait around for Congress to do something," said Johnson. "I am suggesting we need to go ahead regardless of what Congress does."

But Sen. Howard Stephenson, R-Draper, the head of the Utah Taxpayers Association, says it is unreasonable to require businesses to change their accounting systems and absorb tax increases when it is uncertain whether Congress ever will act to legalize Internet and catalog sales tax collections.

"If Congress does act, $150 million to $200 million will begin to flow to the state of Utah," said Stephenson. "It seems to me we could [grant some offsetting tax cuts] as the money begins to flow. What the Taxpayers Association is saying is, let's not be greedy."

Stephenson suggests Utah could eliminate the tax on repairs of motor vehicles, appliances and computers. Or it could dump the sales tax on food.