What you need to know about Proposition 18: Voters will decide on a 0.5% sales tax increase in Summit County

Photo: Unsplash // Alexander Gray

County officials say the tax is needed to offset the rising costs of tourism

SUMMIT COUNTY, Utah – Summit County is asking voters to decide on the lesser of three evils this election: nearly $7 million in budget cuts next year, a property tax increase, or a new sales tax. County officials say the sales tax could generate $15M a year and help offset rising costs associated with tourism, like search and rescue and solid waste expenses.

Here’s how it would work: The new sales tax, as proposed, would be a half percent (that‘s 50 cents on applicable purchases of $100) on purchases excluding gas, groceries, and prescriptions. The County Council indicated prior to putting the measure to a vote that they preferred it over raising property taxes.

It can only be levied if a majority of Summit County voters approve it, and it will appear as Proposition 18 on the Nov. 5 ballot.

It’s being called an “emergency services sales tax” because, according to Utah state law, the sales tax would need to be earmarked for search and rescue, emergency medical services, waste disposal, police, fire protection, and avalanche forecasting. The proposed sales tax would fund these budget items, freeing up money in the general fund for other items.

The county claims that approximately 65% of sales tax revenue is generated by non-residents and that nearly two-thirds of the revenue generated from sales tax would be paid by visitors. They say this is why it’s preferred over raising property taxes in Summit County. 

Chief Financial Officer Matt Leavitt said visitors generate close to 95% of search and rescue costs and that 50% of our solid waste costs come from tourism.

Leavitt said that, given that the population of full-time residents in Summit County has declined for the past two years, the sales tax is the most efficient way for the county to raise needed funds to keep up with rising expenses.

Summit County Search and Rescue issued a statement of support for the tax.

“To be fair to all concerned, the costs associated with SAR calls should be paid for by the persons that are benefiting the most from the SAR service, those being Summit County tourists. Passing proposition eighteen would help to shift the direct costs of tourism-impacted services to the tourists that are responsible for the increased demand,” their letter read.

How much would property taxes need to go up if Proposition 18 doesn’t pass? Leavitt said primary residents would see a $15.25 increase per $100,000 in a home’s taxable value, which is roughly half the assessed value of their home. A home assessed at $1M would expect an increase of about $152.50 in their property tax bill.

Potential Budget Cuts: If the proposition does not pass, the county would consider cutting several mental wellness programs, dependent care assistance, and Senior Citizen program expansion and could impose a hiring freeze.

Ballots are in the mail: Ballots were mailed to voters starting October 15.

Click here to see a sample ballot from your precinct.

Voter information pamphlets are available on the county clerk’s election webpage and vote.utah.gov. These items will also be mailed separately.