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Beaver City council approves 10-year renewal of 1% prepared-food hospital tax
Summary
The Beaver City Council voted to renew a 1% tax on prepared food for a 10-year period to continue servicing hospital bond payments; the measure was approved by roll call after council discussion and staff direction to notify the Utah Tax Commission.
Beaver City Council voted to renew a 1% tax on prepared food for a 10-year period to continue servicing bond payments for the local hospital.
The renewal was carried by motion and second during the council meeting and approved by roll call as Resolution 8 19 20 25. The council directed city staff to notify the Utah Tax Commission of the action.
The mayor summarized the item, saying the legislation that governs the tax changed earlier this year and that the council has the option to renew the tax by resolution for a 10-year period. "If we choose not to renew the tax, the 1% tax will remain in place through the end of this calendar year," the mayor said, and added that the city may renew the tax now to extend it for a decade. The mayor described the tax as "a 1% tax on all prepared food in the city." The mayor said the tax has been in place since the early 1990s and is used to service hospital bond payments tied to the hospital's construction and upcoming remodel.
Council members discussed the proposal briefly. One council member, Owen, said he had no problems with the renewal. Council Member Spencer made the motion to approve Resolution 8 19 20 25; Council Member Allison Webb seconded the motion. During roll call, Tyler Stina voted yes and Allison Webb recorded a yes vote. Following the roll call approval, council direction included having Recorder Patty Smart (referred to in the meeting as "Patty") notify the Utah Tax Commission and specifically to follow up with Kai King at the commission.
The council heard staff estimates that the tax generates between $900,000 and $1 million annually and that an unscientific estimate—presented during the discussion—suggested more than 95% of the tax revenue is collected from transient visitors rather than residents. The council did not adopt changes to the tax rate; it approved a renewal by resolution that continues the current 1% prepared-food tax and ties the revenue explicitly to servicing hospital bond obligations for the stated 10-year renewal period.
City staff and council members also noted procedural timing with the Utah Tax Commission: the commission had previously indicated a different end date for the tax, but that guidance changed, and the council asked staff to confirm the commission's records after the vote.
The meeting moved on to other business after the vote.
