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Show Resort tax seems destined for tourist promotion by CHRISTOPHER SMART Record Staff Writer The Park City Council is expected to fund a Chamber of Commerce Visitor's Bureau proposal for $157,000 from money generated by the Resort Cities Sales Tax, even though major lobbyists say the tax was intended to relieve the burdens of tourism rather than promote it. The allocation would come from the municipality's 1985-86 Operating Budget. The Chamber Bureau's request is equivalent to about 20 percent of estimated Resort Cities Sales Taxes to be collected locally during the upcoming 1985-86 fiscal year. Last year, the council gave the organization organ-ization $125,00020 percent of the $600,000 collected from the tax. The resort tax represents 34 of 1 percent of Park City sales tax which now stands at 6 12 percent. But Mayor Jack Green, the principal lobbyist in the effort to . push the tax through the Utah State Legislature, maintains the tax was meant to relieve local property tax payers of the additional level of services demanded by tourist popu-. lations. Green said he does not believe the legislation was intended to promote tourism. "I sold (the Resort Cities Sales Tax to the legislature) solely on the fact that it would relieve the impacts tourism brings to Park City." The Resort Cities Sales Tax revenues should be spent on the bus system, the police force and Park City's streets, which are significantly significant-ly impacted by tourism. The sponsor of the resort tax legislation in the House of Representatives, Represen-tatives, Glen Brown (R-Summit County), echoed Green's sentiments. senti-ments. Brown added the Chamber Bureau receives funding from the transient room tax charged to all patrons of Park City's hotels and condominiums. "I don't know why they should be pumping general fund money into tourist promotion," he said of the proposal. The Chamber Bureau's proposal as submitted to the city council outlines $80,000 in expenditures for expanded tourist promotion. A new economic development program is budgeted for $40,000. Tourism marketing research will require $17,000, according to the plan. And annual printing of publications is expected to cost $20,000. , According to the organization's report on last year's grant from the council, $40,000 allocated for a tourist information center has not been spent. Last month, the ChamberBureau requested the council allocate an additional $100,000 from its annual Capital Improvements Budget to fund the center. In a budget-cutting move, the council determined that funding the tourist center could be accomplished by borrowing the money through the Resort tax to A6 Continued from Resort Tax from A1 Park City Housing Authority. The municipality would retain ownership of the structure while leasing it to the Chamber Bureau at a rate equivalent equiva-lent to the mortgage payments. City Manager Arlene Loble agrees with Green and Brown that the question of whether the resort tax money should fund tourism was never brought up when the bill was before the legislature. She added, however, that such use of the tax dollars is not illegal. The state of Utah is not promoting tourism in this area to the extent that Colorado advertises that state's ski resorts, she argued. "If the Utah state government was doing what Colorado does, then we wouldn't need to (use Resort Cities Sales Tax funds for tourist promotion)." Lobie explained that Colorado ski resorts were able to attract tourists at a greater rate than Utah resorts largerly because Colorado state government raised about $3 million for an aggressive advertising campaign. cam-paign. During the past ski season Colorado resorts set new records while Park City's ski areas recorded only small increases. Park City does need additional police officers and transit system personnel, Loble said, adding she wishes the money could be spent on those services. City Councilman Bob Wells, who recently resigned his post on the Chamber Bureau's Board of Directors, Direc-tors, said the use of resort tax funds for tourist promotion is legitimate. The ChamberBureau helped the lobbying effort that successfully pushed the legislation through the Senate and House, said Wells. He added that the business community in Park City supported the resort tax bill because it would help promote tourism. Further, Wells contends it is "fair for government to fund tourism." By tying the ChamberBureau's annual grant to the resort tax "you flow with the economic tide." He explained that since the tax is a reflection of retail sales, a poor year would result in a lower allocation to the Chamber Bureau. Chamber Bureau Executive Director Di-rector Debby Symonds argues by funding tourist promotion with resort tax dollars property owners will receive more tax relief. She noted that more tourists mean more sales tax dollars, most of which help property tax payers bear the brunt of tourism. A public hearing on the proposed 1985-86 Operating Budget is scheduled sched-uled for June 6 at 5 p.m. in the Marsac Municipal Building. The budget is scheduled for adoption June 13. |