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House approves county-option rental-car tax to help fund Salt Palace expansion
Summary
The House passed a county-option rental-car and tourism tax (HB360) to support an expansion of the Salt Palace convention center. Supporters framed it as a user fee to preserve convention business; opponents said it was another tax increase and raised concerns about prior incorrect testimony on tax incidence.
The Utah House on Feb. 27 voted to allow counties the option to adopt a rental-car and tourism tax to help fund expansion of the Salt Palace convention center.
Representative Ben Olson, speaking for the proposal, described the measure as a county option tax that counties would have to reimpose annually if they choose to participate. Olson said revenue would be split under a 70/30 formula (70% by tax collected, 30% by population) and estimated the Salt Palace expansion would generate about $4 million in additional state revenue annually.
Opponents argued the measure amounts to another tax increase and questioned earlier committee testimony about whether rental-car companies pay property taxes; Representative Dave Olson moved to "circle" the bill to allow further fact-finding but the motion failed and the House proceeded to vote. Representative Finlayson disputed claims by opponents and urged members to rely on the record before them.
A floor amendment to delete the phrase "not to exceed" to make the tax a mandatory 4% where imposed was adopted; the bill, as amended, passed the House 41-31 and will be transmitted to the Senate.
Supporters said the tax is a user fee capturing convention visitors who benefit from the expanded Salt Palace, while critics warned of cumulative tax increases and urged caution.
