The Utah County Commission convened on May 24, 2023, to discuss a significant ordinance aimed at implementing a new sales and use tax. This proposed tax, referred to as the "fifth cent" sales tax, is designed to fund transportation infrastructure, including highways and public transit systems.

The ordinance seeks to introduce a fifth of a cent sales tax, which would be allocated in specific proportions: half to the public transit district, a quarter to cities, and the remaining quarter to counties. Notably, for the first three years, the entire half portion intended for the public transit district will be directed to the county, before reverting to the standard distribution.

During the meeting, it was clarified that the funds generated from this tax cannot be used to augment the county's general fund; they must be strictly allocated for transportation-related projects. This stipulation aligns with recent legislative changes, which removed a previous deadline for imposing the tax, allowing for more flexibility in its implementation.

Commissioners discussed the importance of this tax in demonstrating Utah County's commitment to funding its transportation needs. It was emphasized that without local investment, state legislators may be less inclined to allocate additional funds to the county.

The timeline for the tax's implementation includes a 30-day notice period for the state tax commission to inform sellers of tangible goods about the new tax. The tax is expected to take effect approximately 90 days after the county's implementation notice, with the first revenue anticipated around December or January, depending on the exact timing of the ordinance's passage.

Importantly, the proposed tax will not apply to food purchases, ensuring that essential grocery items remain exempt from this additional financial burden. The commission's discussions highlighted a proactive approach to addressing transportation funding, reflecting a broader commitment to infrastructure development in Utah County.