Consultant briefs commission on optional county sales tax for public safety and jail funding

Marcus Keller, a public finance advisor with Cruz and Associates, briefed Duchesne County commissioners on a state-level sales-tax provision (commonly discussed as the “02/2016” sales-tax option) that allows eligible counties to adopt a countywide sales tax increment of up to 0.30 percent to fund public-safety needs.

Keller explained the measure’s background: it was used by Iron County to help fund a large jail project and is structured so a board of county commissioners can vote to adopt the increment rather than sending the question directly to a general election in some circumstances. He said the legislature had revised language and that the statute allows counties (typically certain classes of counties under state code) to collect additional sales-tax revenue for “public safety,” broadly defined to include sheriff, jail, fire and emergency medical services.

Using Duchesne County taxable-sales data for calendar year 2024, Keller presented a high-level estimate: had the county collected the increment in 2024, the additional sales-tax revenue would have been roughly $3.48 million for the year. He said Cruz and Associates and the state can provide specific taxable-sales pulls for county planning. Using sample debt-service scenarios and potential CIB (Community Impact Board)-style support, Keller showed rough ranges of bond proceeds that could be financed with the revenue stream under various interest-rate assumptions; illustrative examples showed possible financing in the tens of millions (illustrative model scenarios showed amounts in the $65M–$87M range under favorable rate and structure assumptions, with more conservative market-rate scenarios producing lower proceeds).

Keller emphasized policy choices commissioners would face. He urged the commission to consider reserving proceeds for capital projects (for example, a future jail) rather than using the revenue stream to subsidize ongoing operations, because using it to reduce property taxes or to backfill general fund operations could leave the county short when major capital needs arise. He also noted that smaller counties sometimes use similar revenues for operating needs because the amounts are modest relative to their budgets.

Commissioners asked questions about allowable uses and timing. Keller said the state typically requires about three months from adoption before collections begin and that the county could take a phased approach. He offered to provide template resolutions and to run more detailed scenarios at no charge unless the county decided to pursue bond issuance, at which point municipal-advisory or issuance fees would apply.

The commission did not take action on the presentation; commissioners expressed interest in receiving additional documentation and told staff they would review potential uses and legal clarifications.