Summit County voters won’t just be choosing who represents them in November. They’ll also decide whether to impose a new sales tax that officials say will offset the impacts of tourism — and balance the 2025 budget.
The County Council on Wednesday formally approved a ballot proposition asking residents to adopt a 0.5% sales tax that would generate $15 million towards emergency medical services, solid waste disposal, search and rescue, law enforcement and fire protection.
Chief Financial Officer Matt Leavitt said the initiative is intended as a way to avoid raising property taxes or diminishing county services while reducing the impact on local residents. Tourism is one of two major industries in Summit County, alongside recreation. Officials are hoping to offset the cost of visitors by asking them to pay a portion of the expense.
The sales tax is equivalent to one penny for every two dollars spent. Gas, groceries, prescription medications and a few other items are exempt.
More than 65% of the sales tax would be paid for by nonresidents; visitors create 40% of the solid waste in the county and are responsible for 50% of fire department calls and 90% of search-and-rescue reports.
County councilors are optimistic voters will favor a new sales tax over other tax hikes because it’s an easier burden. Property taxes would have to increase by 81% to bring in the same revenue as the 0.5% emergency services sales tax.
And officials have said there could be stark consequences if they’re unable to generate additional money. The 2025 budget is predicted to exceed $90 million with a projected $10 million deficit. The sales tax would free up funding in the budget for other essential programs.
The municipal services and general funds haven’t been raised since 2017. They pay for just under 90% of daily operations including ambulance services, road maintenance, community development and planning, the library, public health and more.
Council members once considered whether to pursue the new sales tax in tandem with Truth in Taxation should the ballot measure fail. However, they were advised the dual approach could be confusing to residents. It’s unclear how much the budget will be impacted should the proposition fail.
Summit County plans to distribute an unbiased fact sheet with the pros and cons of the initiative to voters. Vice Chair Tonja Hanson said she’d been helping to educate residents. However, the County Council will be unable to advocate for the tax now that it’s appearing on the November ballot.
The tax would be in place for 10 years before another election is held. It could go up to 1%, but there would have to be a public vote if officials want to increase it past the half-percent rate.
Wasatch County voters overwhelmingly approved the sales tax last year to help fund emergency medical services.
A public hearing will be scheduled sometime after Sept. 21 to discuss the sales tax.