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Parks, Arts, Recreation, and Culture (PARC) Tax
PARC TAX Background
On November 2, 2021, a majority of Lehi City voters approved a 1/10th of 1% increase in the local sales and use tax as a means of enhancing funding for recreational and cultural facilities and cultural organizations within Lehi City. The Lehi City Council enacted the tax by ordinance on November 16, 2021. The tax goes into effect April 1, 2022 and will be in effect through March 31, 2032.
PARC tax revenue may only be used for capital development of government owned or operated recreational and cultural facilities, and for the ongoing operations of nonprofit cultural organizations.
PARC Tax Calculator
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Cultural Organization Grants
What are the cultural organization grants?
Cultural organization grants may be used only for ongoing operations of qualifying cultural organizations. An organization must submit one general application each year and multiple project applications can be submitted by each organization.
How is a cultural organization defined?
A qualifying cultural organization is defined as a private 501 (c) nonprofit organization or institution having as its primary purpose the advancement and preservation of: (1) natural history; (2) art; (3) music; (4) theater; (5) dance; or (6) cultural arts, including literature, a motion picture, or storytelling; and an administrative unit. Cultural organization does not include any agency of the state; any political subdivision of the state; any educational institution whose annual revenues are directly derived more than 50% from state funds; or any radio or television
broadcasting network or station, cable communications system, newspaper, or magazine.
Who decides which cultural organization grants are funded?
A PARC Advisory Committee was created by the City Council to review the cultural organization grants applications. The board consists of two Lehi City staff members and five Lehi City volunteer citizens who review the applications and submit recommendations to the City Council. The City Council makes the final decision of which cultural organization grants are funded.
How does a cultural organization apply for a grant?
A cultural organization can apply for a grant through the Cultural Organization Grant link on the right, which has further details regarding the process.
Q&A
What is the PARC tax?
The Parks, Arts, Recreation and Culture tax is a one-tenth (1/10) of 1% (0.1%) sales tax that would be included on sales and uses within Lehi City limits. It is one cent for every $10 spent. It is not a property tax. It also does not apply to non-prepared food or gasoline. Use the calculator below to see how much you would pay
Who pays the PARC tax?
The tax is collected on sales and uses within the City of Lehi. Meaning it is not a sales tax solely on Lehi residents, anyone who purchases goods or services within the Lehi City boundary will pay the tax.
What items will be taxed?
The tax will be collected on all sales completed in Lehi City, with the exception of essential items like groceries, gas, and prescriptions and medical supplies. While the tax is not collected on water, sewer, and waste management, it is collected on electricity and natural gas. A full list of exemptions can be found at the following link: https://le.utah.gov/xcode/Title59/Chapter12/59-12-S104.html?v=C59-12-S104_2019051420191001
Is the PARC tax a property tax?
No, this is not a property tax. This is a sales and use tax. It is not automatically assessed on each resident. It is charged at the point of sale regardless of your place of residence.
Who will decide how the funds are used?
Projects will be approved by the City Council as part of the annual budget process. As always, residents will have the opportunity to provide feedback and input during a public meeting.
Is the PARC tax permanent?
Per state law, the PARC tax will sunset after 10 years. After 10 years the city can choose to place the proposition on the ballot and give residents the opportunity to vote again on whether or not the PARC tax should continue.
