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Senate OKs first-substitute bill to help fund Salt Palace expansion; debate centers on tax shifts and county impacts

Utah State Senate · February 22, 2005
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Summary

The Utah Senate passed first substitute SB 211 on Feb. 22, 2005, creating a permissive funding mechanism—including an optional 1% innkeepers (transient room) tax and changes to car-rental tax distribution—to help Salt Lake County finance a Salt Palace expansion. Debate focused on whether the changes would divert revenue from other counties and on a 60% cap for any single project.

The Utah Senate on Feb. 22 approved first substitute Senate Bill 211, a measure designed to help finance an expansion of the Salt Palace convention center by allowing counties to use a mix of existing and new tourism-related taxes to back bonds for convention facilities.

Sponsor Senator Wadobs said the measure would permit counties that elect to do so to impose a 1% innkeepers (transient room) tax and would return the car-rental tax to point-of-sale distribution for up to five years, reallocating certain innkeepers taxes to fund Salt Palace expansion and related county projects. "Salt Lake County brought this bill to me and wanted to do it for Salt Lake County, and we tried to restrict it to Salt Lake County for the purpose of not offending anyone else," Wadobs said. She added the bill includes a safeguard that "you have to spend no more than 60% on any one project." (See passage and vote details below.)

Why it matters

Proponents say the…

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