Governor signs HB42, law could help Wellington finances
Gov. Gary Herbert has signed HB42, legislation that could help Wellington City solve some of its financial problems.
Introduced by Rep. Patrick Painter, the bill was designed to authorize the state's Permanent Community Impact Board to grant up to $1.1 million to small Utah towns who lost a significant portion of their sales tax revenue as a result of state action.
That happened to Wellington in 2008, when the legislature granted sales tax exemptions to certain mine equipment and changed the tax collection from point of sale - in city limits - to the point of delivery in the unincorporated county.
As a result, the city lost about a third of its revenue, forcing layoffs of city workers and putting the city in jeopardy of defaulting on its $1.1 million road improvement loan from the CIB.
The law only grants the CIB the authority to make the decision, but does not direct the board to take that action.