DALLAS Utah would provide $75 million of state and local sales tax rebates for a convention-center hotel in Salt Lake City under House Bill 356, approved by both houses of the legislature.
The hotel, expected to provide 850 to 1,000 rooms for conventions at the Salt Palace Convention Center, has been a hotly disputed issue for the past two years, with existing hotels angered at the potential loss of business to tax-subsidized competition.
To address those concerns, HB 356 by Rep. Brad Anderson, R-Kaysville, includes a $2 million “Hotel Impact Mitigation Fund” to offset competitive pressures on existing hotels.
Under the bill, a private developer would receive tax rebates capped at $75 million over 20 years in exchange for building the hotel and providing public space at the site.
Some of the revenue generated by the hotel will fund statewide tourism efforts, addressing complaints from representatives outside the Salt Lake City area who thought they were getting short shrift.
Sen. Stuart Adams, R-Layton, the Senate sponsor of the legislation, said the bill, awaiting Gov. Gary Herbert’s signature, should be an economic boon to the entire state “both directly and indirectly."
The hotel bill was one of several passed in the last week of the 45-day session that ended March 13. The major bills included a $13.5 billion budget that increases spending for public schools and higher education.
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