Task Force Senate Chairman Curt Bramble this week has been shopping around an ingenious and allegedly painless way to eliminate the sales tax on groceries by collecting the unpaid tax on Internet sales.

"We may have found a hook," Bramble said of the idea he has been discussing with Senate and House leadership, the governor and special interest groups this week. "It seems to me that we may have found a breakthrough on this issue that doesn't require a tax shift or costing the state $160 million [in revenue]."

So far, three ideas were proposed by task force members. House members backed a plan to eliminate the grocery tax and make up at least some of the lost revenue through a small tax hike on nonfood items.

The Senate countered with simply eliminating the grocery sales tax and using the states' economic growth and recent surpluses to weather the $160 million revenue drop.

The third proposal called for leaving the food tax, but providing an annual food sales tax refund of $75 per person to low-income families.

Bramble's Internet tax solution to kill the food tax would require - at the least - savvy politics, patience and a fair amount of faith to succeed.

Senate leaders, including President John Valentine, acknowledge many of the details remain to be worked out, but maintain the plan is feasible.

"It's not simple - but it's doable," said Valentine of the proposal.

The hurdles include getting cities, counties and other taxing entities to accept a single statewide sales tax rate set by the state. Then, the Legislature and local governments would have to sign off on the phased removal (over five or more years) of the grocery sales tax, which funds many local governments.

Additionally, retailers would have to be persuaded, through incentives, to voluntarily collect the tax.

Finally, the incremental sales tax change will require retailers to reprogram their bar-code readers and cash registers annually.

"But it's sure a lot better than raising a bunch of taxes. It's a lot better than cutting a bunch services." Valentine said, referring to the potential side effects to other plans.

Under Bramble's concept, the Legislature first would implement a statewide single sales tax rate, replacing the patchwork of local rates around the state.

That would enable Utah to become one of the first states to collect sales tax on "remote" purchases, such as Internet and catalog sales, under the so-called streamlined sales tax system.

Still, State Tax Commissioner Bruce Johnson estimates Utah ultimately could tap into tens of millions of uncollected remote sales tax dollars annually.

"There's a lot of estimation involved, but $100 million is a pretty decent number," Johnson says. Offering collection fees to the online vendors of 1.3 percent of the tax collected would sweeten voluntary compliance, he said.

Johnson acknowledges, however, one commitment the Legislature could not back out on if it chooses to follow Bramble's plan. "Once you take the tax off groceries, it's never coming back."

Taxing facts

* Utah is one of only a handful of states that tax groceries.

* The food tax raises about $225 million a year for state and local government.

* Retailers under current law are required to collect tax on Internet sales only when the companies have a physical presence in the customer's state of residence. But some retailers voluntarily collect the tax, and backers of a "streamlined sales tax" plan believe many more will do so if the collection is made simple and incentives are provided.