PROPOSITION 5 - PAROWAN CITY RAP TAX BALLOT PROPOSITION - November 21, 2023

WHAT IS A RAP TAX?  

The Recreation, Arts & Parks (RAP) tax is a one-tenth (1/10) of 1% (0.1%) sales tax that would be included on sales and uses within Parowan City limits. 1/10 of 1% equals 1¢ for every $10 spent.  It is not a property tax.  It is not levied on unprepared food items and/or gasoline.

WHAT IS THE PROCESS TO ENACT THE TAX?  

The sales and use tax must be approved by a majority of the City's registered voters in either a general election or a municipal general election, which this year is on November 21, 2023.

WHO PAYS THE RAP TAX?  

The tax is collected on sales and uses within the City of Parowan, therefore, it is not a tax solely on Parowan residents.  Because it is a tax on purchases of good or services (except groceries and gasoline) within Parowan City boundaries, a visitor or tourist who shops in Parowan stores, attends events, stays in overnight lodging, or eats in a restaurant in Parowan will contribute to the RAP tax.   A family that spends $100 a month on qualifying purchases will pay an additional 10¢ per month.

WHY WOULD THE CITY ASK VOTERS TO APPROVE ANOTHER TAX?  

Investing in the arts, recreation, parks, and trails has been found to improve the quality of life in Utah communities that have a RAP tax.  This very small tax will primarily be generated through tourism spending.

These tax revenues will help the City sustain funding for community programs and facilities - such as parks, the Parowan swimming pool, and the Parowan Arts Program, as well as arts, sports and recreation programs for local youth - and can also be used for local qualifying nonprofit groups.  So while locals who shop in the City will pay a portion of the tax, it is one way that visitors to our community will help pay for amenities/programs that benefit local residents.

IS THIS A PROPERTY TAX?  

No, it is not a property tax.  This is a sales and use tax.  It is not automatically assessed on each resident - it is only charged at the point of sale.

HOW WOULD THE RAP TAX REVENUES BE ALLOCATED?  

According to Utah State Code, the Recreation, Arts & Parks tax revenues can only be used for recreational, cultural, arts and parks facilities and programs provided by the city or qualifying nonprofit groups. State law prohibits the use of RAP Tax revenue for any other purpose, including general administrative expenses.

WHO DETERMINES HOW THE RAP TAX WILL BE USED?  

If Proposition 5 is approved, Parowan City residents will have the opportunity to provide feed back and input into how the funds are distributed.  The City will suggest potential projects. As with each budget year, residents will have the opportunity to be informed of those projects and provide input during public hearings.  The City Council will make the final decision.

HAVE PROJECTS OR PRIORITIES ALREADY BEEN IDENTIFIED?

Specific projects have not been identified at this time.  Residents will have an opportunity to make suggestions, share ideas, and otherwise provide input on how the funding will be used.

An eligible voter may prepare a written argument for or against this ballot proposition by filing a request with the Parowan City Recorder, 35 E. 100 N., Parowan, UT before 5:00 p.m. no later than September 15, 2023.  A voter information pamphlet will be mailed out to all residents, and a public hearing to receive comment will be held on the proposed RAP Tax.

What: Parowan City will be holding a public hearing to receive comments on the proposed RAP tax.

When:  November 9th, 2023 at 6:00 p.m.

Where: City Council Chambers, 35 E. 100 N., Parowan