Utah County Commissioners oppose sales-tax hike

PROVO — Utah County commissioners said Tuesday they are against a bill that would raise the county's general sales tax by one-tenth of a percent.

HB48, sponsored by Rep. Craig Frank, R-Pleasant Grove, would remove the restaurant tax rate of 1 percent and replace it with an option of a one-tenth percent increase to general sales tax.

One of the main reasons the commissioners are against the bill is that it would increase taxes on Utah County residents and then require the county to give some of that revenue to other counties.

Larry Ellertson said this is because of the "hold-harmless" clause, which would require counties that collect more revenue because of the change in tax base to give their excess to counties that would get less revenue.

Ellertson said the reason the Tourism, Recreation, Cultural and Convention tax was implemented was to place the burden of those types of activities and construction on the people or visitors who use them and not on the general population.

"I don't think there is a problem with the current system with collecting those taxes," he said, "and I don't think it is necessary to make that change."

Ellertson also said the tax on restaurants is not a defining factor as to whether people eat out. In fact, the TRCC tax revenue has remained constant despite the economic downturn, even though some restaurant owners say the tax is a detriment to their business, he said.

Utah County is planning to use TRCC tax revenue to repay bonds for the proposed county convention center.

— Sara Lenz