Fiscal Note
S.B. 122 1st Sub. (Green)
2025 General Session
Sales Tax on Food Amendments
by Blouin, Nate
General, Income Tax, and Uniform School Funds JR4-4-101
Ongoing One-time Total
Net GF/ITF/USF (rev.-exp.) $(134,000) $69,300 $(64,700)
State Government UCA 36-12-13(2)(c)
Revenues FY 2025 FY 2026 FY 2027
General Fund $0 $(134,000) $(134,000)
General Fund, One-time $0 $81,000 $0
Transportation Investment Fund
of 2005
$0 $(35,000) $(35,000)
Transportation Investment Fund
of 2005, One-time
$0 $21,000 $0
Restricted Revenue $0 $(2,000) $(2,000)
Restricted Revenue, One-time $0 $1,000 $0
Total Revenues $0 $(68,000) $(171,000)
Enactment of this legislation could reduce state sales tax revenue from food and food ingredients
which would no longer be taxed by a total of approximately $199.5 million in FY 2026 and $227.8
million in FY 2027. Enactment of this legislation could also increase state sales tax revenue from all
other taxable goods and services by approximately $199.3 million in FY 2026 and $227.6 million in
FY 2027. In total, it is estimated that these changes would decrease total state sales tax revenue by
approximately $68,000 in FY 2026 and $171,000 in FY 2027. Of this total, the reduction in revenue
would decrease funds by the estimated amounts as follows: the General Fund by $53,000 in FY 2026
and $134,000 in FY 2027, transportation earmarks to the Transportation Investment Fund of 2005 by
$14,000 in FY 2026 and $35,000 in FY 2027, and other restricted revenue funds which receive state
sales tax earmarks by $1,000 in FY 2026 and $2,000 in FY 2027.
Expenditures FY 2025 FY 2026 FY 2027
General Fund, One-time $11,700 $0 $0
Total Expenditures $11,700 $0 $0
Enactment of this legislation could cost the Tax Commission an estimated $11,700 one-time from
the General Fund in FY 2025 resulting from changes to the State's tax systems, forms, instructions,
training and processes.
FY 2025 FY 2026 FY 2027
Net All Funds $(11,700) $(68,000) $(171,000)
S.B. 122 1st Sub. (Green)
2025/01/24 11:24, Lead Analyst: Travis Eisenbacher, Attorney: Arthur, A. V. Local Government UCA 36-12-13(2)(c)
Enactment of this legislation likely will not result in direct, measurable costs for local governments.
Individuals & Businesses UCA 36-12-13(2)(c)
Enactment of this legislation could reduce sales taxes paid by businesses and individuals by
approximately $199.5 million in FY 2026 and $227.8 million in FY 2027, in aggregate, resulting from
the removal of state sales tax on food and food ingredients. For a household which spends $7,000
annually on such goods, this could result in a decrease in sales taxes paid of approximately $123 per
year; individual impacts will vary. Enactment of this legislation could also increase sales taxes paid
by businesses and individuals by approximately $199.3 million in FY 2026 and $227.6 million in FY
2027, in aggregate, resulting from the increase in the general sales tax rate from 4.7% to 4.933%. For
every $10,000 spent on taxable goods and services, businesses and individuals may pay an additional
$23.30 in sales tax; individual impacts will vary. In total, it is estimated that these changes would
decrease total sales tax liability for taxpayers by approximately $68,000 in FY 2026 and $171,000 in
FY 2027; individual impacts will vary.
Regulatory Impact UCA 36-12-13(2)(d)
Enactment of this legislation likely will not change the regulatory burden for Utah residents or
businesses.
Performance Evaluation JR1-4-601
This bill does not create a new program or significantly expand an existing program.
Notes on Notes
Fiscal explanations estimate the direct costs or revenues of enacting a bill. The Legislature uses them to balance the budget. They do not
measure a bill's benefits or non-fiscal impacts like opportunity costs, wait times, or inconvenience. A fiscal explanation is not an appropriation. The
Legislature decides appropriations separately.
S.B. 122 1st Sub. (Green)
2025/01/24 11:24, Lead Analyst: Travis Eisenbacher, Attorney: Arthur, A. V.