From Deseret News archives:

Salt Palace-funding plan advances

Tax measure would help pay for the expansion of center

Published: Monday, Feb. 28, 2005 10:59 p.m. MST
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A bill that provides a method of payment for the expansion of the Salt Palace Convention Center was brought back from the dead late last week and survived its second round in the Senate on Monday.

SB211 sponsor, Sen. Mike Waddoups, R-Taylorsville, said Friday he expected amendments to be made to his bill. He was right. Several senators, including a few from Weber and Davis counties, tried to save some tax revenue for use by their own counties. The expansion would be funded by various tax shifts and a 1 percent sales-tax increase.

Sen. Scott Jenkins, R-Plain City, said it would be "too much" to take the entire amount earned from rental car taxes away from the counties. His proposed substitution — which ultimately failed — would have taken out the provision allocating all rental car taxes to Salt Lake County and increased the percentage for the potential tax to 2 percent.

"This would save the car rental tax in the other three counties," he said. "It's important to share in those taxes."

Sen. Sheldon Killpack, R-Syracuse, however, success- fully amended the bill to allocate 85 percent of the revenues generated by the proposed tax toward the expansion project and 15 percent to remain in the county where they were generated.

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"I'm just trying to be a team player," Killpack said. "I'm not completely happy, but I'm comfortable." He said if the "shoe was on the other foot" it would meet the same opposition from counties involved in assessing the tax.

Waddoups said it was "probable" that the project could be done within that amount, which he said would be a difference of $200,000 per year. The reduction in generated revenues would only prolong the construction process.

"Instead of losing $1 million, these three adjoining counties now lose $500,000," said Sen. Dave Thomas, R-South Weber. "I recognize the Salt Palace needs the money, but I don't want to force a tax increase on other counties."

After all senators were summoned to vote on SB211, it passed 19-10.

Waddoups added intent language that would allow counties to decide on their own where their contributions would come from, that they did not have to come from sales taxes. Intent language also clarifies payment options for counties involved and says that a definite $10 million to $15 million would come from Salt Lake County.

The bill now faces debate on the House floor. Waddoups said amendments might have to be reversed there.


E-mail: wleonard@desnews.com

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