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Senate rejects local-option bill to let tourism taxes fund affordable housing
Summary
Senate Bill 228 would have allowed counties that collect tourism/recreation/convention taxes to expand their uses to include affordable housing. Sponsors argued it would leverage housing funds; opponents said diverting tourism promotion funds would harm local economies. The measure failed on a 8–19 roll call.
Senate Bill 228, introduced by Senator Suazo, proposed a county-level option to expand the authorized uses of certain tourism and recreation taxes to include affordable housing. Suazo framed the change as a local option — not a mandate — aimed at enabling counties to finance housing for service workers who support tourism and hospitality industries.
“I'm only proposing that they be able to expand it to address affordable housing,” Suazo said, noting the leverage local funds often obtain in housing projects. He cited cities where tourism is strong and service-worker housing is scarce.
Opponents warned the change would divert promotion and marketing funds that generate the tourism activity the taxes support. Senator Hickman said the move could “kill a goose that lays the golden egg,” arguing local tourism promotion would suffer if the dedicated revenues were repurposed. Senator Blackcomb and others echoed concerns that hotel, convention and restaurant taxes should remain focused on industry development.
Questions during debate addressed which taxes the bill affects and whether hoteliers and restaurateurs had been consulted. Sponsor Suazo acknowledged opposition from at least some restaurateurs and said Salt Lake County had expressed interest but had not formally requested the change through him.
At roll call, Senate Bill 228 failed, receiving 8 aye votes and 19 no votes; the chair announced the measure failed and will be returned to the files.
