Recreation, Arts & Parks (RAP) Tax
About the RAP tax
The Recreation, Arts, and Parks tax of 0.1% goes into effect on April 1, 2021. Businesses located within Moab city limits will begin charging the sales and use tax on all eligible sales at that time.
Unprepared food items are exempt from the tax.
On Nov. 3, 2020, City of Moab voters approved Proposition 8, the Recreation, Arts & Parks Tax (RAP), by a margin of 56.75% to 43.25%. The ballot question read: "Shall the City of Moab, Utah, be authorized to impose a .1% sales and use tax to fund cultural facilities, recreational facilities, and zoological facilities and botanical organizations, cultural organizations, and zoological organizations in the city?” §59-12-1402(1)(b)
Why the City asked voters to consider the tax
For many years, the City of Moab has heavily subsidized our Aquatic and Fitness Center (MRAC), as well as youth sports programs, and the Moab Arts & Recreation Center, in order to provide these important services for all of our residents. These combined subsidies have totaled almost $1 million annually, the bulk of which has gone to support the MRAC.
As Moab continues to grow, the needs of our residents grow as well. The City sought to implement the RAP Tax as a way to continue providing these popular services and as a resource for possible future expansion of recreation, arts, and parks offerings.
RAP Tax Details
- The RAP Tax adds 0.1% to the sales tax, which equals 1 penny for every $10 spent.
- Anyone shopping in Moab will pay the tax on eligible purchases. Estimates from the City’s 2019 sales tax revenues show that at least 79% of all qualifying purchases in Moab are by individuals who do not reside here. This means the largest percentage of RAP Tax revenue will come from visitor spending.
- Funds generated from the RAP Tax are reserved solely for specific projects including recreation programs, cultural arts programs, and parks.
- The tax can be levied for 10 years and then it must be reauthorized by the voters.
HOW MUCH does the RAP tax COST?
The tax will add 0.1% to the taxes charged by Moab hotels, nightly rentals, restaurants, shops, and other businesses. Groceries are exempt from the tax. The tax increases Moab’s sales tax rate from 8.75% to 8.85%. This equals 1 penny for every $10 spent.
Based on sales tax revenues from 2019, the tax could generate $300,000 to $400,000 in additional revenue for the City. The amount of revenue depends entirely on sales for any given year.
HOW MUCH WILL I PAY?
Use the calculator below to better understand how the tax will affect your qualified purchases.
HOW RAP TAX FUNDING CAN BE USED
These funds may be used for capital improvements and operations of publicly owned/operated amenities and other uses including:
- Playing fields/courts
- Pickleball courts
- Moab Aquatic and Fitness Center
- Moab Arts and Recreation Center
- Pedestrian Trails/Bike paths
- Sports programming
- Arts and cultural programs
Who DeCIDES How RAP Tax Funds Are Used?
Moab City residents will have the opportunity to give input into how the funds are distributed. The City will suggest potential amenities/programs during each budget year and that information will be available to the community so residents can make their views known during a public meeting. Some communities have created a committee that considers qualified recreation, arts, and parks projects/programs, including those managed by community nonprofit groups. Moab City Council members have expressed support for this process and if the City Council chooses to create such a group, the committee would review applications and make recommendations to the Moab City Council for how the funds will be allocated and the Council would make the final decision.