Summit County officials are preparing for a “challenging budget year” as they anticipate a shortfall of around $15 million. 

A new sales tax could generate enough funds to cover the difference, but it must first be approved by voters. Otherwise, the County Council will have to consider increasing property taxes and related fees, reducing services or finding other sources of revenue.

County councilors met with Chief Finance Officer Matt Leavitt last week for continued discussion about the upcoming fiscal year and where county finances stand. 

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Leavitt previously estimated the budget was over by about $10 million in May, but this month he said the projections have increased by another $5 million because of inflation and additional costs related to mental health services, facilities maintenance and recreation programming.

Summit County has the second-lowest tax rate in Utah but the third-highest property values, which creates a bit of disparity, according to Leavitt. Officials haven’t gone through Truth in Taxation to raise property taxes since 2017 although it’s recommended every five years.

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Property taxes would have to be raised by more than 81% countywide to add $15 million to the general fund — which council members agree isn’t reasonable — or a 0.5% “emergency services tax” could be imposed to balance the budget.

About 50% of sales taxes are paid by visitors, meaning it has less of a burden on Summit County residents than a property tax increase would. The ballot initiative could create up to a 1% sales tax on certain transactions as a way to offset the costs of tourism. 

Officials would likely start at about half that rate, meaning there’s an extra 50 cents added onto every $100 purchase. Fuel, unprepared foods like groceries and prescribed medicines are exempt from the tax. 

The money generated would be used to pay for emergency medical services, law enforcement, fire protection, search and rescue, solid waste disposal, avalanche forecasting or a combination. Those programs would be funded through the sales tax, freeing up municipal services and general fund money for other priorities.

Members of the County Council were overall supportive of the sales tax, though they had some questions about the options going forward and whether residents would be supportive.

The County Council must pass a resolution by Sept. 1 to put the new sales tax on the Nov. 5 ballot. A public hearing would also have to be held 45 days before the general election to weigh the pros and cons of the proposal. The County Clerk’s Office would be tasked with making a neutral fact sheet to present the information to residents.

The County Council will continue the discussion during another work session with the possibility of adopting an ordinance later this month or in August. 

Officials also raised concerns about what would happen if the ballot initiative fails. Chair Malena Stevens expressed worries the difficulties of last budget season would be exacerbated, and Leavitt said there would be significant reductions to county resources.

“I do have concerns about not having a dual process simply because if this doesn’t pass, and we then have $15 million that we are deficient for our budget,” she said. “If we don’t have that money available and this tax doesn’t pass, which we cannot control, I think we need to have a really candid, clear conversation … to really understand then what obligations we are willing to not fulfill.”

Community members have protested property tax increases for at least the past two years.

The emergency services sales tax would have to be renewed once every 10 years similar to the Recreation, Arts and Parks tax. Wasatch County voters overwhelmingly approved the sales tax last year to help fund emergency medical services.