1. City can make its bond payment
The City is obligated to make bond payments until 2029 of approximately $310,000 annually. Re-authorization of this tax will generate the needed revenues to meet this obligation.
2. We’re all paying this tax in other cities
All of North Salt Lake’s neighboring cities collect this same tax and so when shopping outside of the City, residents will still be paying this tax.
3. Keep taxes low
Re-authorization of this tax will prevent the City from having to raise revenues through more invasive taxes such as property tax which tends to be higher and more permanent. The RAP tax is the best way to pay these bonds and will end in ten years.
4. Residents have great parks
Residents of the City authorized the imposition of this tax and the City constructed several parks on the strength of this revenue stream. Residents who are now enjoying the early construction of these parks should pay a nominal charge in sales tax to pay for the costs of the parks. The City enjoys wonderful parks for very little cost.
5. The tax is VERY small compared to other ways to pay the bond
The tax is very nominal and equals 1/10 of a cent for every dollar spent or 1 cent for every $10 or 10 cents for every $100 spent. This equates to an estimated $17 per person per year. This is the right funding source for our parks construction bond.
6. Support for more recreation
Re-authorization of the tax may also generate some additional revenues that could help the City to build additional park amenities and trail segments. The City has many park and trail needs and though there won’t be a large surplus, whatever excess revenue is generated will go to support additional planned projects.