From Deseret News archives:

Corroon fighting to keep tax

He says cities are trying to steal restaurant levy

Published: Tuesday, Nov. 7, 2006 10:42 a.m. MST
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Salt Lake County Mayor Peter Corroon is trying to block a move to steal the restaurant tax away from counties across the state.

Although no legislation has been penned, "a move is afoot" to redirect restaurant-tax revenue to cities. Corroon said several mayors are pushing for the switch.

Currently 25 of the state's 29 counties collect the tax and use it to operate recreational and cultural facilities and pay off the debt service on bonds for those types of buildings.

Corroon plans to meet Wednesday with Gov. Jon Huntsman Jr. to try to convince the governor to keep the tax as is.

"If that legislation were to go forward, it would have devastating consequences," said Darrin Casper, Salt Lake County's chief financial officer. "It's a very big deal to us. It would be a devastating blow."

Counties can impose a tax of up to 1 percent on all prepared foods and beverages sold at restaurants. Only four counties — Emery, Millard, Piute and San Juan — currently opt out, said Charlie Roberts, spokesman for the Utah State Tax Commission.

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Salt Lake County uses the money to pay the debt service on the Salt Palace and South Towne Exposition Center bonds, as well as operating costs at those facilities and several county cultural centers, including Abravanel Hall and the Capitol Theatre, Casper said.

Now, there is talk in legislative circles to change the tax so that a city could keep the money collected through the tax instead of giving it to the county.

Sandy contributes about $4 million a year in restaurant-tax revenue to Salt Lake County each year, and Sandy Mayor Tom Dolan said those funds should be spent on improving the city.

"If they are collected in my city, I want them to come back to my city," Dolan said in July after the Salt Lake County Council voted against giving the city hotel-tax dollars for a soccer stadium. Dolan could not be reached for comment Monday.

Other cities with multiple restaurants, such as Park City and Provo, could also benefit from the possible switch. But Corroon said smaller cities with no restaurants will be left out if the tax is changed.

"What would happen with one of those cities who don't collect a lot of restaurant tax? Does that mean they don't get a recreation center?" Corroon said. "One of the purposes of government is to help equalize between the haves and have nots."

Huntsman's spokesman, Mike Mower, said the governor is looking forward to learning more about the impact of possibly changing the restaurant tax.


E-mail: ldethman@desnews.com

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