RAP Tax

Elections

PROPOSITION 7 - RECREATION, ARTS & PARKS TAX
In Spanish Fork City, we take pride in the various recreation, arts, and parks programs and amenities that are available to our residents, from the Sports Park to the River Trail. As our community continues to grow, so will the needs of our residents.

In order to expand the recreation, arts, and parks offerings of Spanish Fork City, residents will have the opportunity to vote on a proposed tax which is added to the existing sales tax. The proposed tax is called the Recreation, Arts, & Parks Tax, or RAP Tax for short. Here is what you need to know about the proposed RAP Tax in preparation for the November Election.



WHAT IS A RAP TAX?

A RAP tax, which stands for Recreation, Arts & Parks, is a sales tax that is added to the regular sales tax rate. Revenues generated from a RAP tax are reserved for specific areas of focus in a community, such as:

  • Parks
  • Cultural Arts Programs
  • Recreation Programs
  • Zoos

RAP is just one name for this type of tax. Other communities have used other names, including:

  • CARE: Cultural Arts and Recreation Enrichment
  • PAR: Parks, Arts & Recreation
  • PARC: Parks, Arts, Recreation & Culture
  • ZAP: Zoo, Arts & Parks

Regardless of the name, this type of tax serves one purpose -- enhance recreation, arts, and parks programs and projects in the community.

Playground


HOW MUCH IS THE RAP TAX?
The RAP tax is 0.1%. This would increase the sales tax rate from 6.75% to 6.85%. This equals 1 penny for every $10 spent.

Based on sales tax revenues provided by the Utah State Tax Commission, a RAP tax in Spanish Fork would have generated $491,000 in FY 2017 and $568,000 in FY 2018.

Golf Course Hole 12-Spanish-Oaks-12.25x22 - Copy
WHO PAYS THE RAP TAX?
Because the RAP tax is a sales tax, it is collected at the time of purchase, just as the existing sales tax is collected.

Over the last several years, Spanish Fork City has become much more of a commercial hub in southern Utah County. With additional retail offerings, including restaurants and retailers that draw from a larger geographic area than the Spanish Fork city limits, many individuals from other communities come to Spanish Fork to shop and dine. Using sales data provided by the Utah State Tax Commission, it is estimated that between 41 and 52 percent of all sales in Spanish Fork City are from individuals who do not reside in Spanish Fork City. In other words, nearly half of the funds that would be generated by the RAP tax would be from nonresidents shopping in Spanish Fork City.
 
Sales Data Chart v4

Additionally, numerous cities in Utah County and throughout the State already have a RAP tax; therefore, if you shop in these communities, you have paid the RAP tax. Some of these communities include Provo, Orem, Payson, Lindon, Salt Lake County, and Washington County (St. George).

Cities With RAP Tax v2


WHAT PROJECTS CAN BE FUNDED? 
The following is the ballot language for Propostion 7, outlining how RAP Tax funds could be used in Spanish Fork City, in accordance with State Code 59-12-1402.

BALLOT LANGUAGE


Shall Spanish Fork City, Utah, enact a local sales and use tax of 0.1% (1 penny for every $10 spent) to help fund recreational amenities and cultural arts facilities and organizations in Spanish Fork City, said tax to be levied for ten years?
Funding may be used to support municipal or non-profit organizations providing programs such as, but not limited to:
  • Live theater
  • Chorale groups
  • Bands
  • Festivals
  • Youth Arts
  • Theater groups
  • Symphonies
  • Operas
  • Museums
Funding may be used for capital improvements of publicly owned or operated amenities such as but not limited to:
  • Parks
  • Playing fields/courts
  • Trails/Bike paths
  • Splash pads
  • Swimming pools
  • Performing Arts Center














____ YES
____ NO


Rec.Trail2

IDEAS OF PROJECTS THAT COULD BE FUNDED 

Because the fund distribution will be subject to the recommendation of the Citizen Advisory Committee and approval of the City Council, it is hard to say exactly which projects will receive funding. Regardless, the City has several projects that could be priorities for the RAP tax, including but not limited to:

  • All Abilities Park
  • After-School Programs
  • City Park Improvements
  • Dog Park Amenities
  • Improved Arts Programs
    • Community Theater
    • Children Programs
  • Indoor Aquatics Center
  • Indoor Arena at Fairgrounds
  • Pool/Splash Pad Expansions
  • Reservoir Amphitheater/Stage
  • Rocky Mountain Power Trail Corridor/Other Trail Connections
  • Senior Center Improvements

HOW ARE FUNDS DISTRIBUTED?
  • A citizens’ advisory committee or commission would be formed
  • Committee would accept and review funding requests, such as:
    • City Parks projects;
    • City Cultural Arts projects; or
    • Appropriate 501(c)(3) grant applications
  • Committee makes recommendation to the Council for distribution each year

DO YOU HAVE QUESTIONS ABOUT THE RAP TAX?

If you have any questions that you would like us to answer about the RAP tax, please submit your question below.











Sports Park 2

FAQs

Why do we need a new tax to fund RAP when we have not needed it in the past?

Will any of these funds go toward the library?

What portion of the tax goes to pay city officials or those on committees?

What purchases does the RAP Tax apply to?

Would the tax apply to things such as vehicle sales? For example, if I purchased a $40K vehicle in Spanish Fork, would it cost $400 more to purchase it from a dealership in Spanish Fork?

Can these funds be used to build a rec center?

Will the RAP Tax be used for the arts?

Are the funds going to be allocated in percentages?

How long will the tax last?

Will the rate increase?

How does the RAP Tax affect the City's General Fund?

Do impact fees cover the costs for RAP?

What happens if the County institutes a RAP Tax?

How much of the current sales tax does the City receive?