TRT & Restaurant Tax Contribution & Use (2010 - 2017) Provo - - PowerPoint PPT Presentation

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Aug 29, 2022 128 likes •346 views

U TAH C OUNTY T RANSIENT R OOM T AX & R ESTAURANT T AX GENERATION AND USE ANALYSIS A UGUST 2019 P URPOSE What are TRT and Restaurant Taxes? How much does Utah County collect? How and where have the revenues been used? B ACKGROUND B ACKGROUND

SLIDE 1

UTAH COUNTY

TRANSIENT ROOM TAX & RESTAURANT TAX GENERATION AND USE ANALYSIS AUGUST 2019

SLIDE 2

PURPOSE

What are TRT and Restaurant Taxes? How much does Utah County collect? How and where have the revenues been used?

SLIDE 3

BACKGROUND

SLIDE 4

BACKGROUND

Transient Room Tax

Governed by Utah State Code 59-12-301 & 17-31-2
Optional tax imposed by county of up to 4.25% on accommodations less than 30 days
Used to establish and promote recreation, tourism, film production, and conventions
Support convention meeting rooms, exhibit halls, visitor centers, museums, sports

and recreation facilities, and related facilities

Restaurant Tax

Governed by Utah State Code 59-12-603
Optional tax imposed by a county of up to 1% on alcoholic beverages, food and food

ingredients, and prepared food

May be used to finance tourism promotion and support an airport facility, a convention

facility, a cultural facility, a recreation facility, or a tourist facility

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UTAH COUNTY TRT & RESTAURANT TAX REVENUES

Utah County 2010 2011 2012 2013 2014 2015 2016 2017 Avg Total TRT Revenues 1.7 1.9 2.1 2.3 2.5 2.9 3.3 3.6 2.5 20.4 Restaurant Tax Revenue 4.5 4.9 5.2 5.6 6.2 6.9 7.6 8.0 6.1 49.2 Total 6.2 6.8 7.3 8.0 8.7 9.9 10.9 11.6 8.7 69.7

All figures are dollars expressed in millions Source: Utah County CAFR

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UTAH COUNTY TRT REVENUES MAIN CONTRIBUTORS

Estimated TRT Revenue Generation 2010- 2017

City Avg Total

Provo

1,419,269 11,354,153

Orem

510,482 4,083,853

Lehi

480,988 3,847,903

American Fork

48,786 390,287

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UTAH COUNTY TRT MAIN CONTRIBUTORS

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

2010 2011 2012 2013 2014 2015 2016 2017

Percent of County's Accommodation Sales Provo Orem Lehi Spanish Fork Pleasant Grove American Fork

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UTAH COUNTY RESTAURANT TAX REVENUES MAIN CONTRIBUTORS

City Avg Total

Provo

1,443,131 11,545,052

Orem

1,610,860 12,886,878

Lehi

597,774 4,782,195

Spanish Fork

408,813 3,270,503

Pleasant Grove

152,507 1,220,054

American Fork

822,040 6,576,322

Estimated Restaurant Tax Revenue Generation 2010- 2017

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UTAH COUNTY RESTAURANT TAX REVENUE MAIN CONTRIBUTORS

0% 5% 10% 15% 20% 25% 30%

2010 2011 2012 2013 2014 2015 2016 2017

Percent of County's Food & Beverage Sales

Provo Orem Lehi Spanish Fork Pleasant Grove American Fork

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Budget County TRT Expenses 2010 – 2017 Total Utah Valley Convention & Visitors Bureau (Explore Utah Valley) 11,339,516 Freedom Festival 673,000 Other 303,014 Transfer to FD 391 (Convention CTR Bond PMT) 7,874,666 Ice sheet Bond Payment 383,444 Total 20,573,640

UTAH COUNTY TRT EXPENSES

5 Different Line Items $20.5 Million in Expenditures Over 8 Years $2.5 Million on Average Expended Annually Spend Down Revenues

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Budget County TRT Expenses 2010 – 2017 Total Utah County Parks & Trails 7,525,207 Materials, Services, and Supplies 2,779,651 Convention Center Operation & Maintenance 6,756,878 Bookmobile 848,147 Land Purchases 2,328,556 Capital Outlay 648,215 Transfer to FD 100 (Parks/Recreation) 1,499,648 Transfer to FD 100 (Gun Range Operations) 10,000 Transfer to FD 391 (Convention Ctr Bond PMT) 10,372,833 Transfer to FD 391 (Thanksgiving PT Bond PMT) 5,527,248 Transfer to FD 400 (Convention Center) 6,628,585 Transfer to FD 400 (Historic Courthouse) 2,417,511 Transfer to FD 630 (Courthouse Common Area) 240,000 Spanish Fork Fairgrounds 1,573,959 Ice Sheet 1,737,325

UTAH COUNTY TRCC EXPENSES

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Budget County TRT Expenses 2010 – 2017 Total Utah County Art Board 27,180 UVU Arts building 2,000,000 Grants/Contributions to Outside Agencies 2,959,077 Total 55,880,020

UTAH COUNTY TRCC EXPENSES

18 Different Line Items $55.8 Million in Expenditures Over 8 Years $6.98 Million on Average Expended Annually Spend Down Revenues

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MEASURING DISTRIBUTION OF BENEFITS

City’s Name: Line Item Corresponds With a Specific City Equivalent Mixed: Generally Beneficial Line Items None-Large Cities: Bookmobile Based on Population: Grants/Contributions Park Location: Benefits Divided Based on Proximity to Cities

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MEASURING DISTRIBUTION OF BENEFITS

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Utah County TRT Expenses Beneficiary Utah Valley Convention & Visitors Bureau (Explore Utah Valley) Equivalent Mixed Freedom Festival Provo Other Equivalent Mixed Transfer to FD 391 (Convention CTR Bond PMT) Provo Ice sheet Bond Payment Provo

UTAH COUNTY TRT BENEFITS

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Utah County TRT Expenses Beneficiary Utah County Parks & Trails Park Locations Materials, Services, and Supplies Equivalent Mixed Convention Center Operation & Maintenance Provo Bookmobile None - Large Cities Land Purchases Equivalent Mixed Capital Outlay Equivalent Mixed Transfer to FD 100 (Parks/Recreation) Park Locations Transfer to FD 100 (Gun Range Operations) Orem Transfer to FD 391 (Convention Ctr Bond PMT) Provo Transfer to FD 391 (Thanksgiving PT Bond PMT) Lehi Transfer to FD 400 (Convention Center) Provo Transfer to FD 400 (Historic Courthouse) Provo Transfer to FD 630 (Courthouse Common Area) Provo Spanish Fork Fairgrounds Spanish Fork Ice Sheet Provo

UTAH COUNTY TRCC BENEFITS

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Budget County TRT Expenses Beneficiary Utah County Art Board

Equivalent Mixed

UVU Arts building

Orem

Grants/Contributions to Outside Agencies

Based on Population

UTAH COUNTY TRCC BENEFITS

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(2,000,000) (1,000,000)

1,000,000

2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 Average Benefit Average Contribution Difference Average Benefit Average Contribution Difference Average Benefit Average Contribution Difference Average Benefit Average Contribution Difference Average Benefit Average Contribution Difference Average Benefit Average Contribution Difference Provo Orem Lehi Spanish Fork Pleasant Grove American Fork

TRT & Restaurant Tax Contribution & Use (2010 - 2017)

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0.00% 100.00% 200.00% 300.00% 400.00% 500.00% 600.00% 700.00%

2010 2011 2012 2013 2014 2015 2016 2017

Yearly Benefit v. Contribution

Provo Orem Lehi Spanish Fork Pleasant Grove American Fork

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OBSERVATIONS

First, there is a disconnect between where TRT and Restaurant Tax revenues are generated and where the benefits are enjoyed (revenues expended). Second, the process by which TRT and Restaurant Tax revenue funds are prioritized, programed, and expended is deficient. Third, the County, and the Advisory Board need policies in place to improve the equitable distribution of benefits from the expenditure of TRT and Restaurant Tax revenues.