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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


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