The Salt Lake Tribune
by Lee Davidson
July 3, 2017
In 1996, Utah offered 48 exemptions to its sales tax. Twenty years later, that has mushroomed to 91, a near doubling in two decades.
New estimates say all those tax breaks cost at least $650 million a year in lost revenue.
The Legislature’s Revenue and Taxation Interim Committee is beginning to study the array of exemptions — from hay to prescription drugs to collectible coins to ski-resort equipment to purchases by churches — and whether they still are justified or should be eliminated. It’s part of a wider look at overall tax reform.
In 1996, Utah offered 48 exemptions to its sales tax. Twenty years later, that has mushroomed to 91, a near doubling in two decades. New estimates say all those tax breaks cost at least $650 million a year in lost revenue. The Legislature’s Revenue and Taxation Interim Committee is beginning to study the array of exemptions — from hay to prescription drugs to collectible coins to ski-resort equipment to purchases by churches — and whether they still are justified or should be eliminated. It’s part of a wider look at overall tax reform.
Rep. Tim Quinn, R-Heber City, did some quick figuring and said that “16 percent to 17 percent of all goods sold in the state” are escaping sales tax. That means losing $1 of every $6 possible from the tax.
