e The Times-News, Nephi, Utah


96 South Main Street, PO Box 77, Nephi, Utah 84648 - Voice: 435 623-0525 - FAX: 435 623-4735
On our front page this week
March 22, 2023

  • Mona council members adopted an ordinance to add a Highway Tax.

By Myrna Trauntvein
TN Correspondent

Shay Morrison, who has been working as a Regional Planner for the Six County Association of Governments (SCAOG), now has a new job as a full-time shared local government advisor for SCAOG.

Though it was not his turn to attend this meeting, at the public hearing Morrison had recommended the council add the adoption of the ordinance to the agenda for the next meeting and then adopt it.

“You have implemented the 0.1 percent RAC (Recreation, Arts, Parks and Culture) tax,” said Morrison at the hearing. “That hasn’t been in place for a full year.”

“That tax has produced, on average, $1,900 per month,” he said.

The 0.3 percent Highway Tax would bring in three times as much.

“So that would be approximately $5,800 that could come from the highway tax that could be used for roads, sidewalks and transportation purposes.”

Utah Code §59-12-2215 allows a city or town an option sales and use tax of up to 0.3 percent to fund highways and public transit known as the “Local Option Sales and Use Taxes for Transportation Act.” It allows a city or town in Utah to impose the municipal highways tax.

Manti (Sanpete County) and Monroe (Sevier County) imposed the city or town option sales and use tax at 0.3 percent on October 1, 2022. The tax increase raised the combined sales tax rate in Manti and Monroe from 6.35 percent to 6.65 percent.

Utah Code §§59-12-2203 & 2217 allows a county option sales and use tax of up to 0.25 percent to fund transportation. Wasatch County imposed the transportation tax county-wide at 0.25 percent starting October 1, 2022.

The proposal to impose a 0.3 percent local-option sales tax for streets and sidewalks that would translate to 30 cents on a $100 purchase within the city was approved but will not be passed until next week when it can be placed on the agenda as an action item.

“Will we contract with the state tax commission the same as we did for the RAC tax?” asked Ron Warren, council member.

That would be the procedure prior to the tax being official, said Morrison.

A city, or town that imposes a local option sales and use tax under state code may expend the revenue generated from the local option sales and use tax for the following purposes: the development, construction, maintenance, or operation of: a class A road; a class B road; a class C road; a class D road

.It may also be used to construct traffic and pedestrian safety infrastructure, including: a sidewalk; curb and gutter; a safety feature; a traffic sign; a traffic signal; or street lighting; streets, alleys, roads, highways, and thoroughfares of any kind, including connected structures.

It can be used for an airport facility; an active transportation facility that is for non-motorized vehicles and multimodal transportation and connects an origin with a destination; or an intelligent transportation system; a system for public transit; all other modes and forms of conveyance used by the public; debt service or bond issuance costs related to a project or facility.

“Roads take more money,” Morrison said. “If you do not adopt new sources of revenue, such as the municipal highway tax and the Transient Room Tax, the city would have problems.”

Barnes Bullets is in the city limits but they are taxed on the point of sale and not on the point of creation, said Randy Christensen, mayor.

“You could set up a franchise fee,” said Morrison.

Morrison said that his authority is as an advisor to the mayor, council and staff.

Jay Mecham, council member, made the motion to adopt the ordinance and to authorize the mayor to sign it. Ron Warren, council member, made the second and, by roll call vote, all voted in favor.