Senate advances Salt Palace funding bill to third reading after sponsor warns of lost convention revenue

The Utah Senate on Feb. 22 moved House Bill 438, which would authorize a county-option 1% restaurant tax to support convention, tourism and facility operations including the Salt Palace, onto the third reading calendar.

Senator Reese, presenting the bill, said the Salt Palace is 21 years old and outdated and that conventions had cited facility deficiencies as their reason for not coming, estimating about $66 million in lost economic activity. The measure would give counties the option to impose a restaurant tax to finance tourism infrastructure and promotion and is paired with a companion bill for Salt Palace funding.

Senator Reese said the bill increases the membership of a governing board and would require fire districts to adopt the uniform fire code among other technical changes. He noted he planned one amendment on third reading and asked for suspension of the rules to advance the bill. The roll call recorded 18 ayes, 4 nays and 7 absent and the bill was placed on the third-reading calendar.

Supporters argued the tax would help modernize facilities to retain conventions and associated economic benefits. No final county-level tax decision was made: the bill authorizes a local option for counties to adopt the tax rather than imposing a new statewide tax.

Provenance: Debate and roll-call on HB438 recorded on the Senate floor during Feb. 22 session.