By a 2-0 vote Tuesday, Utah County Commissioners trimmed the restaurant tax by 10 percent. Since the change only drops the food tax from 1 percent to 0.9 percent, few diners may notice.
But while the decrease means roughly $270,000 to $290,000 less in food-tax revenue for county coffers per year, Commissioner Steve White says the county will not feel the pinch.
"We've replaced the [restaurant-tax money] with the rental-car tax," White said Tuesday, referring to the tax the county started levying earlier this year.
The rental-car tax - largely levied against out-of-state visitors - is expected to more than offset any revenue loss that results from lowering the restaurant tax.
For Orem's Joel Timmons, who eats out nearly every day, any tax decrease, however miniscule, is a monumental occasion.
"Taxes are onerous, and I am ornery about paying them," he said.
"So I laud the county for lowering my tax burden."
Ditto for Provo's Dennis Hall, who owns several McDonald's restaurants. He says the issue is a no-brainer for restaurant owners.
"We're all in favor of the elimination or any reduction of the restaurant tax," Hall said. "The reason is, that a lot of gas stations, 7-Elevens, grocery stores and other businesses are not charged the tax. So it's made for a bit of an uneven playing field."
County voters approved using the restaurant tax in 1992 to help build Utah Valley State College's David 0. McKay Special Events Center in Orem, among other things.
Over the past 12 years, however, more restaurants have opened and more tax revenues have poured into county coffers, creating a surplus. Feedback for the move has been positive.
"Everyone I've spoken to is in favor of it," said Commissioner Jerry Grover, whose previous attempts at getting the tax lowered had been unsuccessful.
meddington@sltrib.com


