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

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 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

U TAH C OUNTY TRT & R ESTAURANT T AX R EVENUES 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 5

U TAH C OUNTY TRT R EVENUES M AIN C ONTRIBUTORS Estimated TRT Revenue Generation 2010- 2017 City Avg Total 1,419,269 11,354,153 Provo 510,482 4,083,853 Orem 480,988 3,847,903 Lehi 48,786 390,287 American Fork 6

U TAH C OUNTY TRT M AIN C ONTRIBUTORS Percent of County's Accommodation Sales 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 2010 2011 2012 2013 2014 2015 2016 2017 Provo Orem Lehi Spanish Fork Pleasant Grove American Fork 7

U TAH C OUNTY R ESTAURANT T AX R EVENUES M AIN C ONTRIBUTORS Estimated Restaurant Tax Revenue Generation 2010- 2017 City Avg Total 1,443,131 11,545,052 Provo 1,610,860 12,886,878 Orem 597,774 4,782,195 Lehi 408,813 3,270,503 Spanish Fork 152,507 1,220,054 Pleasant Grove 822,040 6,576,322 American Fork 8

U TAH C OUNTY R ESTAURANT T AX R EVENUE M AIN C ONTRIBUTORS Percent of County's Food & Beverage Sales 30% 25% 20% 15% 10% 5% 0% 2010 2011 2012 2013 2014 2015 2016 2017 Provo Orem Lehi Spanish Fork Pleasant Grove American Fork 9

U TAH C OUNTY TRT E XPENSES 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 5 Different Line Items $20.5 Million in Expenditures Over 8 Years $2.5 Million on Average Expended Annually Spend Down Revenues 10

U TAH C OUNTY TRCC E XPENSES 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 11

U TAH C OUNTY TRCC E XPENSES 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 18 Different Line Items $55.8 Million in Expenditures Over 8 Years $6.98 Million on Average Expended Annually Spend Down Revenues 12

M EASURING D ISTRIBUTION OF B ENEFITS 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 13

M EASURING D ISTRIBUTION OF B ENEFITS 14

U TAH C OUNTY TRT B ENEFITS 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 15

U TAH C OUNTY TRCC B ENEFITS 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 16

U TAH C OUNTY TRCC B ENEFITS Budget County TRT Expenses Beneficiary Utah County Art Board Equivalent Mixed UVU Arts building Orem Grants/Contributions to Outside Agencies Based on Population 17

(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 TRT & Restaurant Tax Contribution & Use (2010 - 2017) Provo Average Contribution Difference Average Benefit Orem Average Contribution Difference Average Benefit Lehi Average Contribution Difference Spanish Fork Average Benefit Average Contribution Difference Average Benefit Pleasant Grove Average Contribution Difference Average Benefit American Fork Average Contribution 18 Difference

Yearly Benefit v. Contribution 700.00% 600.00% 500.00% 400.00% 300.00% 200.00% 100.00% 0.00% 2010 2011 2012 2013 2014 2015 2016 2017 Provo Orem Lehi Spanish Fork Pleasant Grove American Fork 19

O BSERVATIONS 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. 20