Tax increase could help Salt Lake pay for roads

A Davis County legislator wants to increase sales tax in Salt Lake City, making commuters and tourists shoulder some of the cost of future transit projects.

Senate Majority Assistant Whip Greg Bell, R-Fruit Heights, told the Deseret News he plans to introduce a bill that would allow the capital city to tack an additional 7/10 of a cent onto the existing sales tax.

"What it would do is create a similar tax to the resort community tax for Salt Lake City and possibly St. George," Bell said.

The tax increase would help cover the cost of a $65 million rebuild of the North Temple viaduct, regional road improvements and light rail or street cars into south Davis County, said Salt Lake City Council Chairman Carlton Christensen.

For the city, the issue is a population swing that is, quite literally, night and day.

Salt Lake City's population jumps by about 72 percent, as more than 132,000 commuters head into the city each day, according to the U.S. Census Bureau.

That's the second highest percentage change in the nation, behind Irvine, Calif., and ahead of Washington, D.C.

"We're proud and honored to be the host," said Ben McAdams, a senior adviser to Mayor Ralph Becker. "With that come expenses."

The city's 180,000 residents, mostly through property taxes, pay for wear and tear to roads caused by a daytime population of 313,000, McAdams said. With the LDS Church, University of Utah and other tax-exempt entities controlling more than half the property in the city, Salt Lake faces an even tougher task, he said.

The tax increase would be "an opportunity for others to pay for a part that, frankly, we wouldn't get otherwise," Christensen said.

Currently, cities receive 1 percent of sales tax revenue. Half of that money stays at the point of sale and the rest is distributed around the state.

Bell said his proposal has "some stiff opposition" from senators who are concerned about "giving away" local option money, especially in the middle of an extensive state review of taxes.

E-MAIL: lisa@desnews.com, afalk@desnews.com