COG reviews local-option sales-tax options; moves to request county route funds to COG

Jeff, a representative of the Cache Metropolitan Planning Organization staff, briefed the Cache County Council of Governments on statewide local-option sales-tax options and other local revenue tools, and members discussed compliance rules and distribution formulas tied to those options.

Jeff outlined several statutory “options” previously referenced by the legislature (summarized in the meeting as first/second/third/fourth options). He described a $10 vehicle registration fee option that a county legislative body may enable and said, "It would generate about 1,000,000 annually, at least based on 2024 vehicle fleet data for the county," if enacted. Jeff also summarized a 2023 one-time distribution enacted under Senate Bill 175 — a one-time, state-funded push-out tied to vehicle registration revenue — and explained the differences among the sales-tax options, including which require county resolution and which formerly required voter approval.

Staff noted compliance requirements tied to recent county-level action: the county's recently enacted second-quarter option designates 60% of that revenue for public safety and requires a compliance demonstration that at least 40% of sales-tax revenues are used for eligible transportation capital or maintenance expenses (and that jurisdictions avoid double-counting other restricted funds). Jeff reminded participants that the COG and CMPO should be involved in future discussions about distribution and prioritization if the county changes how revenues are allocated.

After discussion, a member moved and the COG voted to ask the Cache County Council to direct the county portion of the relevant sales-tax revenue to the COG for prioritization and allocation, a motion that passed by voice vote. Members acknowledged the county council retains final authority and that formal changes would require county council action and, if necessary, an amendment to any previously submitted materials.

The presentation also included staff estimates for revenue generation over short time frames and a reminder that distributions from the tax commission (for the fourth-option distribution) are formula-driven and sent to cities based on statute. Members asked staff to continue coordination with county staff and to raise the discussion with the county council so the COG can be involved in prioritization decisions if the county implements additional local-option revenues.

Action and outcome: The COG approved a motion to ask the Cache County Council to allocate the county share of applicable local-option sales-tax revenues to the COG for transportation prioritization. The motion passed by voice vote; no roll-call tally was recorded in the transcript.