Impacted Communities Tax

What is the Impacted Communities Tax?

The Impacted Communities Tax is a local option sales and use tax in Utah for municipalities that have high transient room capacity (i.e., number of available hotel and motel rooms) to support the needs of visitors and mitigate tourism impacts to the community. In 2025, the Utah State Legislature adopted SB 333, authorizing third-class counties like Summit County that have three or more sporting event venues to impose this tax. A county in this category may impose up to a 1.1% tax through a county ordinance. The tax only applies to taxable purchases (see examples below) in unincorporated Summit County (outside city limits).

How can the revenues from this tax be spent?

The state legislature restricted the County's use of revenues from this tax to “public infrastructure and infrastructure improvements, including transportation and transit projects.” If imposed, Summit County intends to use money collected from the impacted communities tax on:

Transportation infrastructure & improvements
Transit projects

See below for a list of potential projects this tax would fund.

How much revenue could be generated?

A 1.1% tax rate would result in approximately $17 million per year in estimated annual revenue.
A 0.5% tax rate would result in approximately $7.7 million per year in estimated annual revenue.

Examples of taxable purchases

Retail sales of physical or digital goods.
Paid admission for entertainment and recreational activities.
Meals (prepared food and beverage) at restaurants, eateries, catering & other dining options.

Some items would not be taxed, including:

Unprepared food (like groceries)
Prescription medications
Gasoline and fuel

Who contributes to this tax?

Major industries contributing to the tax include:

Utilities
Restaurants
Online sales
Retail businesses
Home improvement stores
Resort lodging and nightly rentals

Why is the County considering imposing this tax now?

This tax would support long-term transportation improvements to benefit residents, visitors, and businesses by easing congestion and constructing public infrastructure for major future events (such as the 2034 Olympics).

The goal is to reduce traffic congestion and provide public amenities to improve community connectivity and quality of life for residents, businesses, and visitors. The county needs to start preparing for the future by establishing a funding source to construct these improvements, some of which begin in 2026.

Possible projects funded by this tax

If approved, tax revenue could help pay for projects designed to improve transportation and reduce traffic pressure in and around Kimball Junction and in other areas of the county. Potential projects, among others, include:

Improvements to the I-80/Kimball Junction interchange and surrounding roads
Transit center, bus rapid transit along State Route 224
Structured parking with workforce housing
Pedestrian bridge over State Route 224

What is the timeline and process to impose this new tax?

The County Council can impose this tax by ordinance. It does not require or need a vote of the people. Council will study and discuss the tax in a work session on October 22, 2025. On October 29, 2025, Council will review, consider, and vote on the parameters resolution and ordinance imposing the tax.

If adopted, the State Tax Commission requires a 90-day grace period before implementation to allow notification to vendors and time for vendors to update their payment systems. In this case, vendors would start collecting the new tax in February 2026 after notification from the State Tax Commission with the new rate and date for implementation.

Members of the public can attend the October 22 and October 29 Council meetings in person or via Zoom. To access the Council meeting agendas, meeting locations, and links, go to: https://www.summitcountyutah.gov/2341/Meeting-Minutes

Where can I get more information about the Impacted Communities Tax in Summit County?

Contact Summit County Finance Officer Matt Leavitt at mleavitt@summitcountyutah.gov.