Huntsville Council adopts 6% municipal energy tax to help cover spike in sheriff contract

The Huntsville Town Council voted unanimously on Nov. 7 to adopt a municipal energy sales and use tax of 6 percent to help cover an anticipated rise in public-safety contract costs.

Clerk Beckki Endicott told the Council the tax, which will appear on Rocky Mountain Power and Dominion Energy bills, could add about $12 a month to an average homeowner's bill and produce roughly $32,000 a year for the town. "This tax will show up on the Rocky Mountain Power bill and on the Dominion Energy bill," Endicott said, and the Town can levy up to 6 percent under state law. Councilmember Artie Powell moved to pass Ordinance 2024-11-7-A at the full 6 percent and Councilmember Bruce Ahlstrom seconded the motion, which passed on a 4-0 roll-call vote.

Council members framed the measure as a targeted revenue source tied to a shortfall caused by a projected contract increase from Weber County. Mayor Pro Tem Sandy Hunter summarized the budget need during discussion: the prior contract year was about $86,000 and next year's contract was projected near $119,000, a jump the Council said required new, predictable revenue. After passage, the town will contract with the Utah State Tax Commission for collection, per the ordinance's implementing language.

The ordinance text (Attachment #4) directs that existing franchise fees and other contractual credits be handled according to state law, and it authorizes the mayor to enter any supplementary agreements with the Tax Commission to effectuate collection. The Council said the tax is one of several measures they are considering to stabilize public-safety funding while the county and other contract cities review long-term allocations.