Dave Spatafore said that concerns have been raised that the removal of the state sales tax and retention of the local sales tax on food would result in a three-tiered system. Communities that have a more diverse commercial base may have a small increase in their revenue, while those that are more dependent on food for their commercial base may experience a decrease in their revenue. First, regarding the concerns over a split-tax base, he said that nationally government leaders are working toward a unified tax base. If a remote sales policy is implemented, a unified base will be required. Second, those states not taxing food decided in the 1950s and 1960s to exempt food from the tax base.
Some states give an income tax credit for food.
Roger also noted that the Tax Commission could implement almost anything as long as the tax base is unified. Brian Head Councilmember Jim Ortler asked if anyone has considered the impact of visitors to the state when discussing the sales tax off food option. If the sales tax on food is eliminated, this may cause a loss of outside revenue. Senator Waddoups said that the impact might be minimal because many of the food purchases by visitors occur at restaurants. Mayor Karla Hancock, Moab, said that the impact in her community would be significant because many visitors buy their food in places other than restaurants.