Salt Lake Tribune
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Panel hears public's passion for tax reform
This is an archived article that was published on sltrib.com in 2005, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Wide fault lines emerged Wednesday at the first public hearing on the work of the Legislature's Tax Reform Task Force as citizens and municipal officials heatedly challenged several of the panel's proposals as inequitable and potentially devastating to local governments.

Many of the hundred or so citizens who showed up at the Capitol, chastised the task force for never seriously considering an elimination of the sales tax on groceries. Linda Hilton of the Coalition of Religious Communities said the task force ignored an opportunity to make the system fairer.

"This is what the people want," Hilton said. "Yet it continues to be ignored and not addressed." The task force decided the loss of revenue from the elimination of the grocery sales tax - an estimated $200 million - would leave too large a hole in state income. Instead the panel is proposing a refundable grocery tax credit for low-income families. Advocates for working families say the credit is far too little to make a real difference. Yet, Hilton said, the Legislature has no problem with losing at least as much revenue through a proposed exemption on sales tax on industry-production equipment. The task force members explained their proposals were crafted to enhance economic development, which in turn would create jobs and pay for improved state services, including education.

Officials from municipalities, including Sandy, Murray, Midvale and Riverdale registered their displeasure with a proposal to take away cities' 1 percent local option sales and use tax. That would force the cities to rely almost completely on property tax to fund government. Bountiful City Manager Tom Hardy warned the panel that such a shift would be devastating to cities around the state and would not pass without an ugly clash between local governments and the Legislature.

If nothing else, the meeting made clear citizens' passion for tax reform, despite its mind-numbing complexity. When Rep. Steve Urquhart, R-St. George, said he supports the elimination of the tax on groceries, Hilton didn't miss beat. "Do you want to run the bill for us? No one else will."

Taken aback, Urquhart would only say, "All options are open."

Public meetings are planned for Vernal, Price, Provo, Cedar City and St. George through the end of October.

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