By Tracie Sullivan
In a bid to address the pressing need for a new county jail, Iron County Commissioners have taken a significant step by approving an increase in the local sales tax. The new tax will apply to all purchases except unprepared foods, with an increase of 0.3%.
This move is expected to generate approximately $4 million in additional revenue for the county, earmarked specifically for the construction of a much-needed $90 million jail facility.
The decision to raise the sales tax comes after a failed attempt to secure funding through a property tax increase, which was put to a vote by the residents of Iron County last November.
Despite efforts to bond for the new jail, voters rejected the proposal, prompting state legislatures to introduce House Bill 488. This bill, which passed unanimously in both the House and the Senate, offered the county alternatives for funding.
“No one wants a tax increase but we are out of space at the old jail and the building is worn out. And it would cost so much more to remodel it and it still wouldn’t meet our needs,” said Iron County Sheriff Ken Carpenter.
Included in the lengthy bill is a provision that enables counties in the third through sixth class that opt to impose a sales tax of up to 0.3% to use the collected revenues for public safety purposes, such as the construction of jails.
“This is going to be very helpful,” said Iron County Clerk Jon Whittaker. “We held many public hearings and the people who spoke said they would rather see a consumption sales tax rather than a property tax increase and that’s what this is.”
During last year’s public hearings held as part of the bonding process, the majority of residents voiced concerns about increased property taxes, advocating for a fairer distribution of financial responsibility.
“We listened to the folks who spoke out against the property tax increase,” stated Iron County Commissioner Marilyn Wood. “This tax increase will allow us now to build a new jail and not put it all on the homeowners because it will be being paid by tourism and all the residents in the county.”
With the passage of HB 488, the county gained the authority to proceed with bonding and repay the debt using the additional revenue from the sales tax increase that will take effect July 1.
For the past four years, Iron County has experienced rapid population growth, leading it to claim the title of the fastest-growing county in the state for two consecutive years. However, this growth has also led to a rise in crime rates, resulting in overcrowding and inadequacy in the current jail that is nearly 40-years-old.
“We have seen so much growth in the last few years and with that has come more crime and we have to be able to address that and hold people accountable and keep our streets safe. This new jail will allow us to do that,” Carpenter said.
Iron County Auditor Luke Little said that officials are reviewing all aspects of the new bond to identify opportunities for cost-saving measures. This involves a thorough examination of the proposed bond’s terms, interest rates, and repayment schedule.