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Senate advances plan to fund Salt Palace maintenance with new tourist levies
Summary
The Utah Senate approved moving a bill forward that would create new up-to-5% levies on certain short‑term leases and setups and a tax on some car rentals to fund Salt Palace operations and maintenance; senators debated conditions on releasing state funds, county bonding, and impacts on residents and tourism.
The Utah Senate advanced legislation to the third‑reading calendar on a plan to create new levies aimed at funding ongoing operations and maintenance for the Salt Palace convention center. Sponsors said the measure provides a steady revenue stream so the state and local governments will not need annual supplemental appropriations.
Supporters described the proposal as an investment in tourism infrastructure. Senator Craig Peterson (recorded during debate) said the state risks losing convention business and related spinoff benefits if facilities are not maintained and modernized. “If we don’t do anything to our convention industry, the total dollars that we will lose over the next few years will really be significant,” the sponsor told colleagues.
Opponents and some questioners said the measures amount to new taxes on tourists and residents. Senator Nelson said the cumulative effect could add directly to a visitor’s hotel and rental car bills and discourage conventions. Other senators warned short‑term car leases and on‑premises drink service could be affected and noted the charges would apply to Utah residents as well as out‑of‑state visitors.
Lawmakers adopted a floor amendment that added “not to exceed” language to the levy provisions to cap the short‑term lease charge at 3% and the setup charge at 5%. The sponsor and staff clarified that the bill itself addresses ongoing operation and maintenance funding and does not itself appropriate the $15,000,000 capital contribution discussed in committee; county bonding and local commitments were described as separate steps. Committee witnesses indicated that counties, not the state, would be expected to issue the bonds the project requires.
Senator Carrie Peterson asked whether current transient room tax revenues are being fully used for tourist promotion and bond payments before creating another tax; supporters said changing how the existing transient room tax is spent would require altering the law that now narrowly defines uses for promotion and construction in the tourism industry.
After debate and amendments, the Senate called the question and recorded a roll‑call placing the bill on the third‑reading calendar with a recorded vote of 25 ayes, 2 nays and 2 absent. The bill will proceed to third reading and remain subject to additional appropriations and intent language in the budget process.
What’s next: The bill moves to the third‑reading calendar; sponsors said they will pursue intent language in upcoming appropriations work and continue to seek letters or other assurances about local matching commitments.
