Tax $$ undermining businesses?

Are convention centers, libraries and golf courses funded with taxpayer dollars actually hurting local economies?

That's a question the Tourism Task Force will try to answer at one of its two upcoming meetings.

The group on Monday discussed hotel-room and restaurant-bill taxes that can be imposed by counties and cities for tourism promotion and facilities, and a few legislators and others found fault with public facilities that ultimately compete with local businesses for weddings and other "local" events.

Melva Sine, president of the Utah Restaurant Association, questioned whether every county needs a convention center.

"We are seeing a lot of buildings being constructed that are now taking local weddings and taking local events away from businesses within those communities who need that type of business, and the very taxes that we are collecting are being used to build facilities that then compete with us," Sine said.

Sine said centers often are constructed with large meetings in mind, then turn to smaller events to help meet maintenance costs. But centers such as one built in Davis County take away meetings and other activities from hotels, she said. The association favors convention centers that bring in "out-of-area or out-of-state people" but not those that draw local events from existing businesses, she added.

Legislators mentioned golf facilities, university alumni centers and libraries among other publicly built facilities that host weddings and other local activities.

Rep. Peggy Wallace, R-West Jordan, said it does not make sense to "just recycle local money."

Sen. Patrice Arent, D-South Cottonwood, said Sine's point is valid. "Those that are being taxed are now subsidizing their competition," she said. "That happens in certain areas, and sometimes it's valid and sometimes they have to go through it."

Sen. Chris Buttars, R-West Jordan, was more direct.

"Overall, I have a great problem with government buildings built with tax dollars being used to compete with retail, period. I think the place to start is, no, that shouldn't be allowed, and then try to find reasons for exceptions, because I think it's terrible," he said.

"I see it all the time. I just shake my head. You tax the business to build the building and then he competes with the business."

Buttars said "that's a big deal" to companies losing business to public facilities.

"I was wondering if we could get our hands around how many millions of dollars is diverted to tax-paid buildings that compete with the people paying the taxes," he said.

Sine said the association is trying to compile that information and is working with a few legislators on potential bills to address the matter.

The task force's co-chairman, Sen. Scott Jenkins, R-Plain City, noting that the task force has only two more meetings, asked if the Business and Labor Interim Committee perhaps was a better place for future discussion to occur. But several task force members stressed the issue's significance.

"It's huge," Arent said. "If you look at the issues that we have discussed as a committee, there are few issues more important than the policy that we're talking about today."

Buttars said the task force might end up recommending a study of that particular issue.

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E-mail: bwallace@desnews.com