Sales and Use Tax Proposition 11

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Santaquin City is Considering a Recreational Sales Tax

Our community is growing quickly; therefore the recreational needs of our residents have grown, and will continue to grow in the years ahead. In order to provide a source of funding to enhance our recreational programs, as well as to consider new projects, Proposition 11 has been placed on the November 6, 2018 general election ballot.

The purpose of Proposition 11 is to ask the Citizens of Santaquin if the City should enact a local sales and use tax of 1/10th of 1% (1 cent for every $10.00 spent) to fund cultural arts and recreational facilities and programs.

This Recreation Sales Tax is known by many names throughout Utah, such as:

  • RAP Tax – Recreational, Arts & Parks Tax
  • CART Tax – Cultural Arts and Recreation Tax
  • PARK Tax – Parks, Arts and Recreation Tax

Regardless of the name and acronym used, the amount of the tax and the purpose, or use, of the tax is exactly the same.



Listed below are some frequently asked questions about this proposed tax.  If you have any questions that are not addressed below, please let us know so that we can get your questions answered as well. 


Why do we need this new tax?

Santaquin Residents have expressed a strong desire to enhance and increase its recreational programs.  Funding is needed to make good programs great, and to create new programs and recreational opportunities throughout the city. 

If the proposition is passed, the intended use of these funds will be used for the planning and possible construction and operational costs of new recreational/aquatics center, and/or for additional parks and trails throughout our community, etc.


How much would the cultural arts and recreation sales tax cost me?

This tax would be a local sales and use tax of 1/10th of 1% (1 cent for every $10.00 spent) on non-food purchases made within the City of Santaquin.


How much money would be generated by the recreation sales tax?

It is estimated by the Utah State Tax Commission, that a Recreation Sales Tax in Santaquin City would generate approximately $43,000 per year.

 

How will the money be spent?

Funds may be used to support Santaquin City recreational capital improvements and operational costs of new programs.  Funding could also be used to support Santaquin non-profit organizational programs.

Amenities it may support include:

  • Aquatics/Recreation Center
  • Parks
  • Playing Fields
  • Trails
  • Bike Paths
  • Museums

 

Programs it may support:

  • Live Theater
  • Choral Groups
  • Bands
  • Festivals
  • Youth Arts
  • Theater Groups

Who pays for this tax?

Because this tax is a sales tax, it is collected at the time of purchase from any commercial business in Santaquin; therefore, anyone shopping at Santaquin businesses will pay the tax on non-food purchases.


Am I already paying a recreation sales tax in other cities when I purchase goods?


Yes, numerous cities in Utah County and throughout the State already have a Recreation Sales Tax.  Therefore, if you shop in these communities, you have paid their Recreation Sales Tax. Some of these communities include Provo, Orem, Payson, Lindon and all of Salt Lake County.  Spanish Fork, Pleasant Grove and Santaquin are all considering a Recreation Sales Tax in 2018.

RAP

What kind of purchases will be subject to the Recreation Sales Tax?

The Recreation Sales Tax would be applied to any non-food purchase that is subject to sales tax. The Utah State Tax Commission has information regarding which items are either exempt from sales tax or have a sales tax rate reduction (https://tax.utah.gov/sales/food-rate). These items would not be subject to the Recreation Sales Tax.


How are funds distributed?

  • A citizen’s advisory committee or commission would be formed
  • The committee/commission would accept and review funding requests, such as:
    • Recreation/Aquatics Center
    • City Park & Trail Projects
    • City Cultural Arts Projects
    • Appropriate 501(c)3 grant applications
  • The committee/commission would make recommendations to the City Council for distribution each year

How much of this tax will go towards paying city officials?

None of the funds generated could be used to pay city officials. The funds could, however, be used to fund new positions associated with new programs.

How long will this recreational sales tax last?

This 0.10% increase would be in effect for a 10-year period.  To extend that time period, the voters would need to approve an extension, otherwise it would automatically revert back.


Will the tax rate increase in the future?

State law sets the maximum Recreation Sales Tax rate at 0.1%, and does not give cities the ability to change that rate; therefore, Santaquin City cannot increase the rate beyond 0.10%


Do impact fees cover the costs for recreation, arts & parks (RAP)?

The City already charges impact fees for all new construction and a recreation impact fee is one of those.  Those impact fees fund some of our new park projects that are needed to support growth but they have restrictions on their use.  Furthermore, impact fees can only be used for the initial cost of a facility and not the ongoing operational costs. As such, a Recreation Sales Tax would supplement the City’s ability to fund the operations of enhanced programming.


what happens if the county imposes its own "RAP", "PARK" or "CART" tax?

If Santaquin City Voters pass the Recreation Sale Tax in Santaquin, and in a subsequent year Utah County also passes a Recreation Tax, Santaquin City would keep its Recreation Sale Tax Dollars and none of our funding would go to Utah County. In this scenario, a County Recreation Sales Tax would only be levied in areas of the County that do not currently have a Recreation Sales Tax.

If residents do not pass the Recreation Sales Tax in Santaquin and the County subsequently passes its own RAP Tax, then purchases in Santaquin City would be subject to the County RAP Tax. Funds generated by a County RAP Tax would be shared by all of the county communities that are subject to the County RAP Tax; however, Santaquin would have no control on how the funds are distributed.

What is the current sales tax rate in santaquin?

The current sales tax rate in Santaquin City is 6.75%

This is distributed as follows:

  • State of Utah: 4.70%
  • Cities: 1.00%(0.50% to the City where the purchase was made and 0.50% is divided up among all Cities in the State of Utah by population)
  • County: 0.25%
  • Mass Transit: 0.25%
  • Mass Transit Fixed Guideway: 0.30%
  • Highways: 0.25%

The proposal would increase the current sales tax rate by 0.10% and set the new rate at 6.85%, which is the sales tax rate for the majority of Utah County.

Sample Ballot

TITLE

SANTAQUIN CITY PROPOSAL TO ENACT A SALES AND

USE TAX FOR PARKS, ARTS, RECREATION AND CULTURE

 

PROPOSITION

 

Should the City Council of Santaquin City, Utah, enact a local sales and use tax of 1/10 of 1% (1 cent for every $10.00 spent) to help fund recreational amenities and cultural arts facilities and organizations in Santaquin City, said tax to be levied for ten years?

 

 

Funding may be used for capital improvements and/or operational costs of publically owned or operated amenities such as but not limited to:

 

.  Aquatics/Recreation Center

.  Parks

.  Playing fields

.  Trails

.  Bike paths

.  Museums

 

Funding may be used to support non-profit organizations providing programs such as but not limited to:

 

.  Live theater

.  Choral groups

.  Bands

.  Festivals

.  Youth arts/theater groups

 

 

            (    ) Yes

            (    ) No

Resolution No 08-03-2018

RESOLUTION NO. 08-03-2018

A RESOLUTION REQUESTING THE UTAH COUNTY ELECTION OFFICIAL TO (1) PLACE AN OPINION QUESTION ON THE NOVEMBER 6, 2018, GENERAL ELECTION BALLOT AS TO WHETHER OR NOT THE CITY OF SANTAQUIN SHOULD ENACT A LOCAL SALES AND USE TAX, OF 1/10TH OF 1% TO FUND CULTURAL ARTS FACILITIES AND PROGRAMS AND RECREATIONAL FACILITIES IN THE CITY OF SANTAQUIN, AND (2) APPROVING THE BALLOT TITLE AND PROPOSITION LANGUAGE

           

            WHEREAS, the Utah Code (Section 59-12-1401, ct. seq.) authorizes a city to submit an opinion question to its voters as to whether or not the city should enact a local sale and use tax of 1/10th of 1 % (1 cent for every $10.00 spent) to help fund recreational amenities and cultural arts facilities and organizations in Santaquin City, (sometimes referred to as a "Cultural Arts and Recreation Tax" or “RAP Tax”) said tax to be levied for ten years; and 

            WHEREAS, a city may not enact a Cultural Arts and Recreation Tax if the county in which the city is located has either enacted a countywide Cultural Arts and Recreation Tax or has declared its intent to submit an opinion question to county voters as to whether the County should enact a countywide Cultural Arts and Recreation Tax; and

            WHEREAS, Utah County has not enacted a countywide Cultural Arts and Recreation Tax; and

            WHEREAS, the City of Santaquin submitted to Utah County a notice of its intent to submit the Cultural Arts and Recreation Tax opinion question to Santaquin voters; and

            WHEREAS, the Utah County Commission intends to consider the passage of a Resolution during its August 7, 2018 meeting that it does not intend to enact a countywide Cultural Arts and Recreation Tax; and

            WHEREAS, a copy of  Utah County's Resolution, if passed, will attached hereto as Exhibit “A” and incorporated herein by this reference; and

            WHEREAS, the Santaquin City Council desires to proceed with the Cultural Arts and Recreation Tax election and submit an opinion question to Santaquin residents as to whether or not the City of Santaquin should enact a local sales and use tax of 1/10th of 1%  (Cultural Arts and Recreation Tax ).

            NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTAQUIN, as follows:

            1. The Santaquin City Council hereby agrees to submit an opinion question to Santaquin City residents as to whether or not the City of Santaquin should enact a local sales and use tax of 1/10th of 1% (1 cent for every $10.00 spent) (commonly referred to as a “Cultural Arts and Recreation Tax” or “RAP Tax”) on transactions located within the City of Santaquin to fund cultural arts facilities and programs and recreational facilities in the City of Santaquin.  The opinion question shall be placed on the ballot for the 6th of November 2018 General Election.

            2. The Santaquin City Council hereby approves the ballot title and proposition to be used for the Cultural Arts Recreation Tax Opinion Question, which shall be substantially the same form and language as set forth on Exhibit “B”, Exhibit “B” is attached hereto and incorporated herein by this reference.

            3, The Mayor and City staff are hereby authorized to take all steps and to sign any documents necessary to place the Cultural Arts and Recreation Tax Opinion Question on the November 6, 2018, General Election ballot.

            4. All acts, orders, resolutions, and ordinances, and parts thereof in conflict with this resolution are hereby rescinded.

            5. This Resolution shall become effective immediately upon passage.

            PASSED AND APPROVED this 1st day of August 2018.

 

 

                                                                        _______________________________________

                                                                        Mayor Kirk F. Hunsaker                       

 

 

ATTEST:

 

____________________________________________

Susan B. Farnsworth, City Recorder

 

 

 

 

Voter Packet 2018

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