Clearfield, Farmington, Perry plan new hotel tax

Starting April 1, it will cost a bit more for your out-of-town guests to stay at hotels in Clearfield, Perry or Farmington.

Those three cities, normally not thought of as hotel meccas, are planning to impose a tax on hotel rooms within their boundaries.

Perry, Box Elder County, is home to one hotel, and Clearfield has two.

Farmington doesn't have any, but with the expected construction of a Hampton Inn in the spring, the Farmington City Council decided to impose the tax. A local commercial development, known as Station Park, is slated to have a hotel component, as well, said Farmington Mayor Scott Harbertson.

What the tax means is that hotel rooms in Perry, Farmington and Clearfield will cost 1 percent more with the imposition of what's known as a municipality transient-room tax — a tax on hotels, motels, inns, campsites, trailer courts and tourist homes for less than 30 consecutive days. The tax doesn't apply to meeting rooms.

All counties charge a similar tax, though at a rate between 3 percent and 4.25 percent. So the municipality tax is tacked on to the final guest bill, just as state and local sales taxes are.

The addition of Perry, Farmington and Clearfield will bring the state total to 43 cities that impose the tax.

According to the Utah State Tax Commission, cities and towns in Utah collected at least $1.72 million in fiscal 2008 by imposing the tax.

Officials in the three cities don't expect to make a windfall from the tax, but because it is a tool the Utah Legislature has authorized, the city councils saw fit to make use of it.

And all three cities are expecting to see growth in hotels and hotel-room stays.

Perry city administrator Duncan Murray said his city could see two more hotels by the time the city is built out. Clearfield city manager Chris Hillman said his council also anticipates future hotels.

Much of the growth, though, will depend on the economy, officials say.

E-MAIL: jdougherty@desnews.com