Sales tax used to be the largest source of public revenue in Utah, but in recent years, income and property tax revenues have overtaken sales taxes in importance. This is among the findings in Utah Foundation’s new report, The Everyday Tax: Sales Taxation in Utah.
The report compares Utah’s sales tax to taxes in other states and looks at the factors affecting its growth. It also looks at exemptions and earmarks, as well as options for broadening the sales tax base.
“‘Broaden the base and reduce the rate’ is a common mantra in economic and policy circles, but when it comes to the sales tax that’s easier said than done,” said Utah Foundation President Peter Reichard. “Still, the public and policymakers need to take a hard look at exemptions and exclusions to ensure we’re not putting undue upward pressure on sales tax rates.”
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