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SB 122 Utah Senate · 2025 General Session

Sales Tax on Food Amendments

SB 122 removes the state sales tax on groceries and food ingredients in Utah, directly affecting all residents who purchase food. To offset the lost revenue, the bill increases the general sales tax rate on other goods and services. This change makes groceries tax-free while maintaining overall tax revenue for the state's General Fund. The bill does not involve new spending or exemptions beyond food items, and it includes minor technical adjustments to tax code sections.
Issues: ✓ Budget & TaxesSupports Budget & TaxesRemoves sales tax on groceries (tax relief for food purchases) while increasing tax on other goods to maintain revenue, aligning with fiscal responsibility and tax equity indicators.95% confidence
Bill status introduced 1 of 4 stages cleared
Introduction
Jan 2025
Committee Review
Floor Vote
Governor
Introduced Jan 21, 2025 Last action Mar 8, 2025
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What changed between versions

Introduced → Substitute #1 · 4 edits
MODERATE
This bill removes the state sales tax on food and food ingredients, which was previously taxed at 1.75% at the state level plus local taxes. To offset the revenue loss from this exemption, the bill adjusts the general sales tax rate to maintain funding for the General Fund. The changes also include technical updates to the Utah Code definitions and tax provisions to conform to the new food tax exemption.
Scope change
The bill's scope changed from taxing food and food ingredients to exempting them from state sales tax, while maintaining local taxes on food sales. The general sales tax rate was adjusted to compensate for this revenue loss.
FISCAL

Removed the 1.75% state sales tax on food and food ingredients, though local taxes on food remain in effect.

Adjusted the general sales tax rate to generate revenue that offsets the loss from removing the state tax on food.

DEFINITION

Updated the definition of 'Agreement sales and use tax' to remove references to food-related tax provisions.

TECHNICAL

Made technical and conforming changes to align the code with the new food tax exemption and rate adjustments.

Floor votes

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Full legislative history

Actions timeline

Total actions
7
Key actions
0
Committee
0
Jan 21, 2025
Introduced
Senate/ 1st reading (Introduced)
upper
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Nate Blouin
Nate Blouin
DDemocratic
UT
13