Utah Food Tax Reduced, Definitions Modified

Amendments to definitions and provisions relating to the Utah sales and use tax on food and food ingredients become effective January 1, 2007. While food and food ingredients remain subject to county and local taxes, the state sales and use tax rate is reduced from 4.75% to 2.75%. Bakery items as well as food and food ingredients sold by a manufacturer or in an unheated state (provided sold without eating utensils) are excluded from the state’s definition of “prepared foods” and, therefore, eligible for the reduced rate. Beverages, tobacco or food prepared for immediate consumption are not eligible for the reduce tax rate. Additional amendments and provisions apply. For our previous news item on this topic, click here. (H.B. 3004, Laws 2006)

Posted on October 18, 2006