Utah County reviews new transient room tax options, cites about $400,000 in potential annual revenue

The Utah County Commission held a work session on June 11 to review changes in House Bill 456 to the transient room tax (TRT) and to discuss how the county might use newly eligible revenue.

County staff member Ezra said the 2025 law “changes the transient room tax” and gives counties “more flexibility on the uses.” He told the commission the county could adopt an additional 0.25 percentage point before July 1; if enacted before that date, the extra revenue would begin on Oct. 1.

Why it matters: the optional 0.25 point would raise the county TRT from 4.25% to 4.5% and is estimated by staff to generate roughly $400,000 a year for Utah County. Under the revised eligibility in HB 456, marketing and promotion remain explicitly allowable while additional categories — including trails and mitigation of tourism impacts such as sanitation, search-and-rescue and law enforcement in unincorporated high‑tourism areas — can now also be funded in counties that generate more than $1 million annually in TRT receipts.

Staff outlined likely projects and cost estimates. Some road upgrades discussed include paving 800 North to 17600 West, with a preliminary estimate of about $4,000,000. Trail work already identified ranges from roughly $500,000 to $3,500,000; staff cited Provo Canyon Trail pavement rehabilitation as the largest single identified project at about $3,500,000. The Jordan River Trail and the Utah Lakeshore Trail were also listed as possible candidates.

County staff described the local search-and-rescue program as volunteer-run, saying volunteers “pay entirely out of pocket for all their equipment, their uniforms” and noting there are 17 members with some certifications. Staff said modest uniform allowances, additional equipment funding and training could be eligible TRT uses under the new law.

Commissioner Gardner asked for a public reminder about eligible uses, and staff confirmed that marketing and tourism promotion remain primary allowable uses under the statute even with the broadened eligibility for other categories.

Staff also noted that roughly 50% of county fire calls are indirectly tied to tourism pressure in canyon and trail areas but that state law currently does not list fire mitigation as an eligible TRT expense; staff said they could pursue a legislative change to allow fire mitigation funding in a future session.

No formal action was taken at the work session. Staff framed the discussion around policy choices the commission must make before the statutory adoption window: adopt the optional 0.25% before July 1 to allow the increase to take effect Oct. 1, or delay action and postpone any additional revenue to a later date.

Next steps: staff will continue to refine project lists and cost estimates and return to the commission with implementation options and any ordinance language needed for formal adoption.