Dining cost to climb April 1 in Utah County

PROVO — When Lon Allen, owner of Lon's Cookin' Shack in Provo, received a notice that said Utah County's restaurant-food-tax rates would be rising to 1 percent, he wasn't happy.

"I was frustrated with it because it seems like we have no say in it," Allen said. "It's just another thing I have to pass on to the customer."

Recently, Utah County's tourism, recreation, cultural and convention center tax rate has rested at .7 percent for restaurant and car rental taxes.

But on April 1, the rate will rise to 1 percent, joining 24 other counties in Utah that charge the tax at the maximum allowable rate. Emery, Piute, San Juan and Millard counties do not collect the tax.

In September, Utah County commissioners voted 2-1 to lower the tax to .65 percent, but the lowered rate, which took effect Jan. 1, ends March 31. In December, the commission instead voted 3-0 to raise the tax to 1 percent.

"We voted to lower (the tax) because we didn't have current needs for those monies," County Commissioner Steve White said. "We weren't trying to build up reserves."

Since then, several project ideas have come to the commission — and those projects cost money.

According to the Utah State Tax Commission, Utah County collected $3,173,699 in 2006 from the tourism tax. But a drastic increase in population, along with potential tourism-promoting projects, has called for the increase, White said.

The last time the county's restaurant tax was at 1 percent was in 2004. The tax then dropped to .9 percent in 2005 because the county was generating more than was necessary for a reserve.

Although there is no limit to how often the tax rates can be altered, counties are required to notify the state and restaurants 90 days before the change takes place.

"Practically, the commission could change the rate every quarter, if they changed their minds," said Utah State Tax Commission spokesman Charlie Roberts. "The county commissioners seem to look at it frequently to meet the needs of their citizens."

While the tax increase only amounts to about $.30 more per every $100 spent, the money adds up quickly when it is collected across the county.

White says he anticipates the county's tourism and recreation fund balance will be about $9 million by the end of 2008, but portions of that money are already spoken for.