S.J.R. 13

1

RESOLUTION SUBMITTING QUESTION TO VOTERS
2 ON REMOVING THE STATE AND LOCAL SALES
3 AND USE TAXES ON FOOD AND FOOD INGREDIENTS
4 2007 GENERAL SESSION
5 STATE OF UTAH
6 Chief Sponsor: Wayne L. Niederhauser
7 House Sponsor: ____________
8
9 LONG TITLE
10 General Description:
11 This joint resolution submits a nonbinding statewide opinion question to the legal
12 voters.
13 Highlighted Provisions:
14 This resolution:
15 . submits a nonbinding statewide opinion question to the legal voters on whether or
16 not state and local sales and use taxes should be removed from food and food
17 ingredients;
18 . directs the Lieutenant Governor to submit the question to the legal voters for a vote
19 at the November 6, 2007 municipal general election; and
20 . requires the Senate to take action after passage.
21 Special Clauses:
22 The passage of this joint resolution is contingent on S.B. 245, General Government
23 Revisions - Authorization of Sales Tax Opinion Question, taking effect.
24
25 Be it resolved by the Legislature of the state of Utah:
26 WHEREAS, sales and use taxes on food have proven to be a stable source of sales and
27 use tax revenue on which states and local governments rely to fund government operations and

28 to meet the critical and growing needs of their citizens;
29 WHEREAS, government services paid from state sales and use taxes include those
30 meeting the needs of some of Utah's most vulnerable citizens and addressing core
31 governmental functions such as health and human services, transportation, corrections, higher
32 education, and natural resources;
33 WHEREAS, "food and food ingredients" is defined in statute to be a substance in any
34 form that is sold for ingestion or chewing by humans and consumed for the substance's taste or
35 nutritional value, but does not include alcoholic beverages, tobacco, or prepared food ;
36 WHEREAS, food and food ingredients are approximately 9% of the taxable base for
37 state and local sales and use taxes;
38 WHEREAS, effective January 1, 2007, the Legislature reduced the sales and use tax
39 rate imposed by the state on food and food ingredients to 2.75%, while still permitting local
40 taxing entities to impose sales and use taxes at existing rates;
41 WHEREAS, the public discussion continues as to whether the Legislature should
42 exempt food and food ingredients entirely from sales and use taxation on the state or local
43 level;
44 WHEREAS, for fiscal year 2007-08, the estimated collection of revenues from state
45 sales and use taxes on food and food ingredients is $106,000,000;
46 WHEREAS, for fiscal year 2007-08, the estimated collection of revenues from local
47 sales and use taxes on food and food ingredients is over $67,000,000 that is used to fund
48 critical local needs, including funding transportation, rural hospitals, and organizations or
49 facilities that are botanical, cultural, recreational, or zoological; and
50 WHEREAS, because of the potential long-term impacts on the state's economy and on
51 the funding of state and local governments, the legal voters of this state should have an
52 opportunity to express their opinion on this very important policy issue:
53 NOW, THEREFORE, BE IT RESOLVED that the Legislature directs the Lieutenant
54 Governor of Utah to submit the following nonbinding opinion question to the legal voters of
55 Utah for their approval or rejection at the November 6, 2007 municipal general election:
56 "1. "Food and food ingredients" is defined in statute to be a substance in any form that
57 is sold for ingestion or chewing by humans and consumed for the substance's taste or
58 nutritional value, but does not include alcoholic beverages, tobacco, or prepared food.

59 2. Food and food ingredients are approximately 9% of the taxable base for state and
60 local sales and use taxes.
61 3. Sales and use taxes on food and food ingredients are a stable source of revenue that
62 funds critical needs on a state and local level.
63 4. Effective January 1, 2007, the Legislature reduced the sales and use tax rate imposed
64 by the state on food and food ingredients to 2.75%, while still permitting local taxing entities to
65 impose sales and use taxes at existing rates.
66 5. For fiscal year 2007-08, the estimated collection of revenues from state sales and use
67 taxes on food and food ingredients is $106,000,000. State sales and use taxes fund items such
68 as health and human services, transportation, corrections, higher education, and natural
69 resources.
70 6. For fiscal year 2007-08, the estimated collection of revenues from local sales and
71 use taxes on food and food ingredients is over $67,000,000 that is used to fund critical local
72 needs including transportation; botanical, cultural, recreational, and zoological organizations or
73 facilities; and rural hospitals.
74 7. On the basis of the findings listed above, the Legislature hereby submits to the legal
75 voters of Utah for their opinion the following question:
76 SHOULD SALES AND USE TAXES ON BOTH THE STATE AND LOCAL LEVEL BE
77 REMOVED FROM THE PURCHASE OF FOOD AND FOOD INGREDIENTS?
78 YES
79 NO".
80 BE IT FURTHER RESOLVED that this joint resolution is not considered to be passed
81 by the Legislature until S.B. 245, General Government Revisions - Authorization of Sales Tax
82 Opinion Question, takes effect.
83 BE IT FURTHER RESOLVED that, after passage by both houses of the Legislature, as
84 provided in Utah Code Section 36-16-102 , enacted in S.B. 245, General Government Revisions
85 - Authorization of Sales Tax Opinion Question, the Senate submit this resolution to the
86 Lieutenant Governor and instruct the Lieutenant Governor that the opinion question specified
87 in this joint resolution be submitted to the legal voters at the November 6, 2007 municipal
88 general election.

Legislative Review Note
as of 2-13-07 2:39 PM

Office of Legislative Research and General Counsel