DAVIS COUNTY — Removing a 1 percent sales tax on restaurants and replacing it with a general tax is opposed by a variety of Davis County officials.

Under the plan, being put forward by the Utah Restaurant Association, a private trade group, each county would have the option of imposing a one-tenth of 1 percent general sales tax. It would apply to sales from restaurants, but also for all kinds of purchases.

While it’s expected Davis County would not lose revenue, any “excess” collections would have to be shared with other counties who might lose revenue – such as tourist-heavy but population small Summit (Park City) and Grand (Moab).

“I don’t believe people should pay a general tax” when visiting a restaurant, said County Commissioner Louenda Downs. “People have a choice” to pay the tax now by deciding if they will frequent a restaurant or not, she added.

“I don’t think it’s right to add a (general) sales tax,” something Davis County Commissioners would have to decide, Downs said. “We don’t want to impose any new taxes.”

The current 1 percent tax is going toward tourism-related projects, as it was intended, she said, such as paying down bonds for the Davis Conference Center, South Davis Recreation Center, and other projects.

“Over the years, we’ve built buildings, have our debt service (payment schedule) in place, could jeopardize our bond rating” if the funding mechanism were to be changed, said County Clerk/Auditor Steve Rawlings. “It would not end up being equitable for our taxpayers, who would end up paying part of the restaurant tax for other counties.”

Estimates from the URA had put out-of-county diners to Davis County at 15 percent, but it’s proven to be closer to 40 percent, Downs said.

“Restaurants have suffered the least, are down 5 percent,” of tourism-related businesses, said County Commission Chair John Petroff.

Davis Area Convention & Visitors Bureau CEO Barbara Riddle recalled how the URA has tried to get the Legislature to change laws to provide the group with direct funding. “First they asked for the counties to support them, and only two (of 29) did,” she said, recalling an effort in 2007.

That was followed by a 2008 request for 10 percent of restaurant tax to go directly to the URA for an “Eat Local” campaign. Then last year, the group wanted 3.44 percent of restaurant tax revenues to be directed to a newly created Utah food and restaurant fund.

“The restaurant tax is a luxury tax,” Riddle said. “Most people who eat out do so because they can afford to. A general use tax would be taxing on everything,” including necessities, such as diapers or basic foods.

If the URA got a tax changed to supposedly benefit its members, other trade groups might try the same option, Riddle said. Reportedly only a small group of mostly fast food restaurants are complaining about the current setup, she said.

The CVB board has taken a position against the proposed change.

“I believe it’s a fair tax,” said CVB Board Chair Chris Dallin. “The proposed tax moves it from a luxury tax to a necessity tax. That’s a bad move. I don’t think the 1 percent tax would stop anyone from gong to lunch or dinner. But if you want to eat at home, you can.”

The URA would not respond to requests from the Clipper for comment as of press time.

tbusselberg@davisclipper.com