This year, because of the many questions received from the public, the Iron County Commissioners will be submitting a “Commissioners’ Column” the fourth week of every month.

The purpose of the column is to provide information regarding the daily operations of Iron County such as budget, taxes, and community issues, and also to profile county departments, their functions, and their accountability to the taxpaying public.

This first column will briefly define the Tourism, Recreation, Cultural, Convention and Airport Facilities Tax Act (also referred to as the Restaurant Food Tax), and explain its uses and its current status.

Current law allows Utah counties to collect up to 1 percent tax on restaurant purchase in the form of TRCC. The county controls the utilization of the TRCC revenues under the advisement of an established advisory board. However, Utah State statute strictly requires these revenues to be used only to enhance tourism and provide facilities and recreational opportunities. Hence, the use of these funds for any other budgetary item is strictly prohibited.

In Iron County, TRCC funds have been used to develop infrastructure to increase tourism spending. These facilities have created jobs in several sectors including construction, retail and hospitality, and food service, resulting in additional and ongoing sales tax revenues.

Projects that Iron County’s TRCC revenues have helped to finance include: Sharwan-Smith Convention Center, Cedar City Festival Hall, Iron County Visitor Center, Cross Hollows Events Center, Frontier Homestead State Park Museum, Rotary Centennial Veterans Park, Enoch City Recreation Complex, Parowan Ball Fields, Cedar City Aquatic Center, Three Peaks Recreation Area, Iron County Fairgrounds, and the Utah Shakespearean Festival.

Presently there is a proposal before the Utah State Legislature to repeal the restaurant portion of the TRCC Tax. This action is of great concern to the Iron County Commissioners. Repeal of the Restaurant Tax will hinder the county’s ability to invest in worthwhile projects in the future, including the Southern Utah University Museum of Art and the Utah Shakespearean Festival Performing Arts Center.

Instability in the county’s tax collections will leave bonding agencies feeling unprotected which will jeopardize Iron County’s ability to bond on future projects. Also, another source of revenue will have to be found to cover the debt remaining on past projects.

Advocates of the repeal of the Restaurant Tax propose that the lost revenue to counties could be covered by an addition to sales tax. Iron County’s Commissioners are strongly opposed to adding additional tax burdens.

The restaurant tax is a discretionary tax that not all citizens pay (According to Wikstrom and Associates, 44.5 percent of Iron County restaurant sales are from out-of-area visitors).

Imposing a county sales tax would place an added burden on all Iron County residents and complicate tax collection and submissions for all retailers.

Hence, the Iron County Commissioners are currently doing everything possible to combat the repeal of the TRCC Tax. Our local state legislators have indicated their support for continuing the Restaurant Food Tax by opposing the repeal effort. If you have any contact with other legislators, please pass along your concerns. Please join us in maintaining and promoting our viable tourism industry without shifting more of the tax burden away from tourists and onto local citizens.

If you have suggestions for combating this misdirected legislation, please contact one of your state legislators, the County Commissioners or the County Administrator’s Office (865-5380).