Ending restaurant sales taxes not likely in CO

Restaurant sales taxes are likely to stay in place in Colorado, even though one Republican wants to make prepared foods sales-tax free.

A bill up for its first hearing Wednesday in a state Senate committee would exempt prepared food sold in restaurants, food trucks and gas stations from state sales tax. Legislative tax analysts say the change would save Coloradans $246 million next year.

Lawmakers are unlikely to pass up such a sizable tax stream. The Colorado Springs Republican who proposed the food tax change, Sen. Owen Hill, predicts that Democrats who control the legislature won’t approve the change.

Colorado already exempts sales taxes on most non-prepared foods sold in grocery stores. Grocery taxes generally hit poor people harder than rich people.