After seeing areas of economic impact in Box Elder, Cache and Rich counties, the lawmakers gave nearly 100 people gathered at the Eccles Theater in Logan two hours of face time.
Two themes - protecting open space and adopting a unified statewide sales-tax rate - dominated Tuesday's public discussion. Rep. Scott Wyatt, R-Logan, said he favors both initiatives, but would support a voter-approved local option sales tax, if no other funding becomes available to preserve agricultural lands in Cache County.
“If the whole state doesn't want to join in distributing sales tax by population, we could make a choice to do it [local option],” Wyatt said.
“The result of that would be the most significant possible thing that we could do - save open space, which is a high priority in this area.”
The streamlined tax reform effort is important to Utah, in order for the state to be able to capture revenues from remote sales, such as over the Internet or through catalogs, according to members of the Utah Tax Reform Task Force. Estimates of lost sales-tax revenues from Internet business in Utah range from $60 million to $112 million annually.
The main goal of tax reform, though, is to create an “equitable tax system with similar tax burdens for everyone,” said Rep. Wayne Harper, R-West Jordan, who is a leader of the tax-overhaul panel.
Ruth Eller, director of Logan's St. John's Episcopal Church, said one way the Legislature can make good on this goal is to eliminate Utah's food tax.
“I see the difference between people who just make ends meet and those who don't,” Eller said. “Removing the food tax would make a tremendous, positive difference in their lives.”
Senate President John Valentine, R-Orem, said one solution under consideration arose out of a public hearing - to create an income-tax credit to replace the revenues generated from food sales.
The food tax makes up to 50 percent of some communities' budgets.
“This proposal has gained significant momentum on Capitol Hill and holds a lot of promise” Valentine said.
abrunson@sltrib.com
