📣 TAKE ACTION: HB 231 – Restaurant Tax Repeal Amendments
This morning, HB 231 - Restaurant Tax Repeal Amendmentssuccessfully passed out of the House Judiciary Committee and is now headed to the House floor for consideration.
While the House Judiciary Committee was seemingly an unusual committee assignment for a taxation bill, it proved to be a strategic placement that allowed the bill to advance. The committee adopted the 2nd substitute of HB 231, which reinstated the initial proposal of replacing the revenues generated by the 1% restaurant tax with a general sales tax, the rate of which would be unique per county.
TAKE ACTION NOW
Contact your House and Senate members immediately via email and text to respectfully express opposition to HB 231 S1. Ask for their support in maintaining the restaurant tax as it currently exists in statute by opposing the bill. Even if you have previously contacted your legislators about this bill, we encourage you to reach out again as it now moves before the full House.
Please Note:
Include Oppose HB 231 in the Subject Line, along with identifying yourself as a constituent.
Ask for their support in maintaining the restaurant tax as it currently exists in statute by opposing the bill.
Keep your message concise of 2-3 sentences.
Talking Points:
The Restaurant Tax is Locally Adopted and Locally Administered
The 2nd Substitute of the bill removes public notification or opportunity for public comment on the creation of a tax.
Replaced by a General Sales Tax
The 2nd Substitute proposes a local-option general sales tax to spread the tax burden across all county residents.
This approach is more regressive for lower-income households while providing greater tax relief to higher-income individuals who dine out more often, as well as visitors and tourists.
Resident vs. Visitor Contribution
There is narrative surfacing that 80% of the restaurant tax is paid by Utahns vs. visitors. This percentage is a statewide estimation. The percentages by county are more nuanced and varied, particularly in rural counties.
Visitors pay a much larger share of the restaurant tax than the general sales tax. If the shift to the general sales tax was to occur, locals will take on a larger share of the tax burden.
