SALT LAKE CITY — Early ballot returns in 17 Utah counties indicated mixed results for a local option sales tax increase to fund local transportation projects.
Counties that approved the sales tax increase voted to increase the tax by one penny for $4 spent.
Billy Hesterman, vice president of the Utah Taxpayers Association, which took no position on Proposition 1, said the mixed results means state lawmakers have more work to do in developing funding streams for transportation projects.
"Funding for Utah’s roads is essential. Traffic congestion restricts economic growth. While voters in some counties have approved of the sales tax increase, others have not, leaving us with incomplete funding for our local transportation system. Utah’s lawmakers need to go back to the drawing board and come up with a plan that includes charging the user for the various transportation methods that are utilized in the state," Hesterman said.
The vote was too close to call in Salt Lake County late Tuesday, but Proposition 1 passed in Weber County and failed in Utah County. In Davis County, the proposition had early support, but vote totals were incomplete.
Elsewhere, voters in San Juan and Duchesne counties approved Proposition 1 to raise sales taxes by 0.25 of a cent to fund roads, transit, trails and sidewalks. According to estimates, the tax increase will cost a family of four spending $20,000 annually on nonfood taxable items about $50 per year.
The proposed tax increase was on the ballot in 17 of Utah's 29 counties, representing a potential boost of about $108 million, but voters in Utah, Uintah, Juab, Beaver and Box Elder counties gave Proposition 1 a thumbs down.
Vote totals in Sanpete and Sevier counties were not available Tuesday night.
Of the new tax money, 40 percent will go to the Utah Transit Authority in counties that approved the increase and are served by the public transportation agency. The remaining 40 percent will go to city budgets for local projects and 20 percent will go to county budgets for regional projects.
In counties without a transit district, 40 percent will go to cities and 60 percent will go to counties.
UTA has pledged to use the funds to increase bus services, including frequency, hours and amenities.
Utahns for Responsible Transportation Investments, a political issues committee, was created specifically to raise money to advocate for Proposition 1.
The group raised $675,000 thanks to large donations from construction companies and engineering firms, according to Oct. 27 campaign finance reports.
The top donor, the Salt Lake Chamber — which also created the campaign — donated $166,000. Other large donations included $50,000 from Gail Miller, owner of the Larry H. Miller Group of Companies and the Utah Jazz, and $50,000 from the Vivint Gives Back Foundation.
Evelyn Everton, director of the Utah chapter of Americans for Prosperity, rallied against Proposition 1 and its lavishly funded campaign.
“It’s disappointing to see in the counties that passed Proposition 1, families will be having their taxes hiked for the third time this year," Everton said. "Between this and the property and gas taxes passed earlier this year, families in those counties will be paying on average $140 more every year. The sales tax increase will inevitably hurt lower-income families.
"But what’s even more disappointing is that 40 percent of Prop. 1 funding will be going to the UTA where it's most assuredly going to be wasted away. UTA shouldn’t get a single dollar more until they can rein in their wasteful spending," she said.
Email: kmckellar@deseretnews.com
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