Some non-profit groups in Summit County could lose about $1.5 million each year if state lawmakers vote to eliminate the Restaurant Tax. For several years counties in Utah have been allowed to add a 1-percent tax to restaurant checks for sales of prepared food.
Locally that money has been distributed to nonprofits operating programs that attract visitors to the area. County officials like the tax because tourists pay most of what is collected in Park City.
“A lot of this tax is paid by people from out of state while they are visiting,” Summit County Councilman Chris Robinson said.
But Utahns account for about 85 percent of the restaurant patrons statewide, according to state Rep. Craig Frank, R-Cedar Hills.
Frank is sponsoring legislation that would repeal the Restaurant Tax and replace it with a smaller increase in sales tax on most purchases countywide.
Summit County Councilman John Hanrahan said he is against the bill.
“If this passes, people will be taxed on everything,” Hanrahan said.
Some state lawmakers say they expect the bill to pass during the 2010 legislative session, which begins Monday.
The Utah Restaurant Association supports the legislation. But the Summit County Council is working to defeat the proposal.
“Kill the bill,” Summit County Councilwoman Sally Elliott said.
The Park City Chamber/Bureau is also against the bill. Chamber/Bureau Executive Director Bill Malone estimated that the 1 percent added to restaurant receipts generates more revenue locally than a smaller increase in the general sales tax would.
In Summit County, grants from the Restaurant Tax have supported the Sundance Film Festival, Park City Kimball Arts Festival and Park City Performing Arts Foundation.