Tax district for Palace opposed

Salt Lake City is under pressure.

For starters, Utah House speaker Greg Curtis, R-Sandy, said Thursday he does not support a measure to create a special sales tax district to fund the expansion of the Salt Palace Convention Center.

That opposition likely kills Salt Lake City's bid to create the tax district, which would need legislative approval during a planned special session this month. Without such a district, the city may be forced to divert nearly $20 million from its innkeepers' tax ($2 million a year over 10 years) and contribute it to the expansion.

That money now goes to the city's general fund, which pays for police, fire, parks and other basic services. The City Council and Mayor Rocky Anderson agree such a hit would be devastating and could mean a tax increase.

In a brief interview Thursday that Anderson had to cut short, the mayor said there may be other options besides the sales tax district that would save the city's innkeepers' tax. If not, the mayor contemplates a property tax increase.

"If $2 million (a year for 10 years) is diverted from Salt Lake City's general fund, that's the equivalent of imposing a property tax increase on Salt Lake City residents because that would be about our only option," Anderson said.

Even conservative council members like Dave Buhler are talking tax hike.

"It will either be some really huge cuts that would be damaging to public safety or a property tax increase to make up the difference. Those are both horrible options," he said.