A new report analyzing Utah’s sales tax demonstrates the need for continued reform, elimination of certain exemptions or possible curtailment of some state services so Utah can remain fiscally healthy in the long term, its author says.
The Utah Foundation points out that during the past 45 years, Utah has seen the nation’s second-biggest decline in taxable sales as a proportion of consumer services.
In fact, Utah had the same real per capita sales tax revenue in 1978 as in 2016 — meaning that, as costs climb, the state is losing its purchasing power from this particular pool of money.
“The key takeaway is essentially the purchasing power of the revenue generated by sales tax is falling,” according to research analyst Christopher Collard. “All the indications point to the sales tax base continuing to erode.”
Collard, who authored the report, said tackling the sales tax issue in Utah is a key political and policy consideration.
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