Utah senate approves tax hike to fund downtown sports and entertainment project
SALT LAKE CITY (ABC4) — Just hours after Utah Jazz owner Ryan Smith shared a potential new look for downtown Salt Lake City, an approved tax hike to fund a Jazz and NHL-centered sports and entertainment project passed through the Utah Senate and moved into the House.
The bill, which would see an up to .5% increase in sales tax in the state’s capital, passed in the Senate late Tuesday night, Feb. 27. The vote was 21-7 with one absentee. All seven “votes” came from Republican senators.
Utah sports owner Ryan Smith has a new vision for downtown and Jazz arena
Should the bill pass completely through the Utah Legislature, any rise in sales tax would still need to be approved by Salt Lake City leaders.
Bill sponsor, Sen. Dan McCay, said he hopes the bill is not viewed as just as an attempt to build an arena but instead as an investment into Salt Lake City, its economy as well as a vibrant, amenity-rich urban core for Utah. McCay pointed toward Detroit, Mich. as an example of the lack of urban investments.
“Once celebrated as a vibrant central place, given the name ‘Mo-Town,’ it declared bankruptcy in 2013,” said McCay. “Without investment, urban centers suffer because of economic forces of decentralization.”
It was a sentiment that Smith shared, who said on social media that the efforts are not about an arena, but revitalizing a downtown that desperately needs investment. Not everyone agrees, however.
During a public comment period, Lehi resident Aaron Bullen said there should not be “socialized costs for privatized profits.”
“I stand by that no matter who it is,” Bullen told the Senate committee. “I don’t think that the taxpayers of Salt Lake or anyone who visits Salt Lake needs to subsidize Mr. Smith because he is quite wealthy.”
PICS: What would SLC’s Power District look like with an MLB ballpark?
State Chair of the Independent American Party Greg Duerdan also voiced dissent for the tax hike saying a sports and entertainment district project levying taxes as funding is against the Utah Constitution.
“We all enjoy sport, even though they’re expensive tickets but we don’t believe everyone needs to be taxed whether or not they participate or attend the sporting events,” said Duerdan. “So, I would question the constitutionality of Senate Bill 272.”
A similar bill to fund the redevelopment of the State Fairpark area, which includes a new ballpark for a Major League Baseball team. An original version of that bill would have seen a rise in hotel and car rental taxes, two options that have since been removed. Instead, the bill appears to approve a .5% sales tax increase in the Fairpark District to help fund the redevelopment project.
That bill passed through the House and arrived on the Senate floor behind a 51-21 approving vote.
For the latest news, weather, sports, and streaming video, head to ABC4 Utah.
