The Summit County government is selling fewer bonds than it anticipated to fund millions in transportation infrastructure improvements in the Snyderville Basin.
County councilors in October approved a resolution authorizing a bond of up to $99 million, with the funds specifically earmarked for infrastructure projects on the western side of the county. However, county staff last week said the total amount will likely be closer to $92 million based on project needs and current economic conditions.
The bond sale is scheduled for Thursday, and County Finance Officer Matt Leavitt said he expects the county to have an interest rate of 4% over 21 years.
The funding mechanism is a two-part strategy involving the bond and a new sales tax created by the County Council in late 2025. Essentially, the bond will pay for the infrastructure projects while the revenue from the tax will pay off the resulting debt.
The state Legislature in 2015 established the Impacted Communities Taxes Act to provide funding to resort municipalities facing increased rates of infrastructure degradation because of substantial tourism. Summit County staff for years advocated to amend the law to allow the tax to be implemented at the county level as well — a request state lawmakers granted last year.
The updated statute allowed the County Council to create a tax of up to 1.1% on sales in unincorporated Summit County, with the revenue specifically earmarked for transportation infrastructure, transportation infrastructure improvements and transit projects. The tax did not require voter approval.
Summit County staff predicted the tax will generate approximately $17 million annually. County Manager Shayne Scott previously said he expects the tax to go into effect in mid-February.
Unprepared foods, prescription medications, gasoline and automobile sales are exempt from the tax, similar to the emergency services sales tax voters passed in 2024.
Leavitt said the major industries impacted by the tax will be resort lodging and short-term nightly rentals, utilities companies, online sales, retail stores and home improvement stores.
Only County Council Chair Canice Harte voted against the proposal last year. Harte, who lives in and represents the Pinebrook area, said he believed the tax would disproportionately affect constituents in his district as unincorporated residents living in the Snyderville Basin.
Harte and the rest of the County Council unanimously voted in favor of last week’s resolution finalizing the bond issuance, however.
With the new tax, unincorporated Summit County’s overall sales tax rate is around 8.75%, compared to 9.55% in Park City proper, 8.25% in Salt Lake City and 7.55% in Heber City.
Aspen and Vail, Colorado, which are often considered competition for Park City’s ski resort economy, also have higher sales tax rates than Summit County — around 9.3% and 9.4%, respectively.
Park City is currently the only municipality in Summit County utilizing the Impacted Communities Taxes Act. Cities must have a transient room capacity greater than or equal to 66% of the municipality’s permanent population to be eligible for the tax under state code. Municipalities are also allowed to tax at a higher rate than counties, and Park City specifically has a tax rate of 1.6% on qualifying purchases.