A RAP tax, which stands for Recreation, Arts & Parks, tax 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 facilities in the community.
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.
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.
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).
WHAT PROJECTS CAN BE FUNDED?
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?
- Live theater
- Chorale groups
- Bands
- Festivals
- Youth Arts
- Theater groups
- Symphonies
- Operas
- Museums
- Parks
- Playing fields/courts
- Trails/Bike paths
- Splash pads
- Swimming pools
- Performing Arts Center
____ NO
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
If you have any questions that you would like us to answer about the RAP tax, please submit your question below.
FOLLOWING REQUIREMENTS
- Must currently have an automatic sprinkler system with a controller.
- Must have a smartphone.
- Must have wireless internet (WiFi) in the home.
- Free smart sprinkler controller.
- Free professional installation.
- Free sprinkler system app.
- Free training to use app.
- Your smart controller automatically manages your sprinkler system.
- You have complete control to override or raise the overall watering with a state of the art phone app.
- Save money on water conservation.
- Reduced peak demands increases pressure citywide.
During the day when it is not windy. The wind will evaporate sprinkler water 6 times faster than the sun.
During the night to avoid evaporation.
The smart sprinkler controllers can automatically schedule watering throughout the city so that demands on the city system are normalized. This reduces infrastructure cost and keeps sprinkler system pressures higher.
Why do we need a new tax to fund them when we have not needed it in the past?
Will any of these funds go to library improvements? Will any of these funds go towards the library?
What portion of the tax goes to pay city officials or those on committees?
Would that 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?
Don't impact fees cover the costs for new parks and fire stations?
Will the RAP Tax be used for the arts?