Tourism taxes pour $2.4B into Utah coffers, fueling public services

Why it matters

Tourism taxes are helping fund vital public services in Utah without raising taxes on residents, while supporting 160,000 jobs across the state.

By the numbers

  • $12.7 billion in visitor spending (2023)
  • $2.4 billion in total tax revenue
  • $250 million from hotel and restaurant taxes alone
  • Tourism generates about 10% of total state sales tax

The big picture

Tourism taxes primarily flow back to local communities where they’re generated, with Salt Lake, Summit, and Washington counties collecting the majority of revenue.

Yes, but

Some areas experiencing heavy tourism impact can’t generate sufficient tax revenue to offset their needs for infrastructure and services.

Between the lines

Beyond specific tourism taxes, visitors contribute significantly to state coffers through regular sales tax, gas tax, and other spending — generating an additional $800 million in state and local taxes.

What’s next

Policymakers are considering adjustments to:

  • Tax rates
  • Distribution methods
  • Allowable uses of tourism tax revenue

The bottom line

While tourism significantly drives Utah’s diverse economy, officials must balance growth with sustainable development and resident needs in high-tourism areas.

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