Utah lawmakers are discussing an increased tax on food. Here's what that means

SALT LAKE CITY (KUTV) — The food we all eat might get more expensive. Upping a portion of the food tax is a new proposal lawmakers talked about for hours on Monday as part of the Tax Restructuring and Equalization Task Force.

Currently, food is taxed in two ways:

1. There’s a 4.85% tax on prepared foods, like what you get in a restaurant.
2. There's a 1.75% tax on unprepared foods, like what you would buy in the grocery store.

Rep. Francis Gibson is on the task force and says, “The state of Utah does not have a revenue problem; we have a distribution problem.”

Gibson says lawmakers need to find solutions to a declining sales tax base. One of the ideas debated Monday would be to increase the tax to 4.85% on unprepared foods.

“Being able to restore that, potentially, could restore some of that revenue as well,” Gibson said.

Critics say this would hurt the poor, but supporters say people could get a credit based on income.

“If you have WIC, you don't pay it; if you have SNAP, you don't pay it, and so those people don't pay sales tax anyway,” said Sen. Lyle Hillyard, who is also on the task force.

Hillyard says this is one idea in a complex problem.

"We want to focus in the position that we get a global view before we start itemizing," Hillyard said.

The proposal to increase this food tax would be to reinstate a tax that used to be on food about 10 years ago.

The Tax Commission estimates $12 to $15 million would come from people who don't live in Utah, but would buy unprepared foods after traveling and staying here.