The fact that tax assessed on restaurant food can be used to build publicly owned convention facilities that then compete with those restaurants for banquets and weddings, even the chefs who prepare food for those events.

"We see lots of [public] buildings now taking local weddings and events from businesses that need that business," Utah Restaurant Association President Melva Sine told the state Tourism Task Force on Monday. "That's a big concern to our industry."

The 2005 Legislature created the task force to study the state's financial relationship with the tourism industry and to recommend changes to the Workforce Services and Community and Economic Development Interim Committee by Nov. 30.

Sine said her organization is working with the Utah Taxpayers Association and its president, Sen. Howard Stephenson, R-Draper, on legislation to preclude the public sector from competing with the private.

She called this to the attention of the Tourism Tax Force since several counties have levied taxes on restaurant food and rental cars to develop, operate and maintain "tourism, recreation, cultural and convention" facilities - all envisioned by the Legislature as a means of making Utah communities more appealing to tourists.

But far from being convention draws, she maintained, these facilities end up taking business away from the companies they were supposed to help out. "We're not opposed to convention centers where needed . . . [but] does every county need a convention facility?"

Sine singled out the Davis Convention Center as an example of a publicly funded facility that has ended up competing with the private sector in an effort to balance its books. But she also took aim at the main Salt Lake City Library, contending "they have more weddings on top of that downtown facility, and they have a kitchen that will blow your mind."

Her complaints registered with several task force members, who invited Sine and Stephenson to speak at their final meeting Oct. 31.

Utah Association of Counties executive director Brent Gardner also complained that counties have more legal constraints than cities on use of transient room taxes to bolster tourism.

As the legislative task force nears the end of its look at Utah's tourism promotion efforts, co-chairman Sen. Scott Jenkins, R-Plain City, said "we've not uncovered any earth-shattering things. . . . I see very little, if anything, that's [wrong] here." He felt the existing system, with the Utah Office of Tourism taking the lead in out-of-state promotions while working closely with nine regional tourism agencies, was working well.

No task force members objected, and several nodded in agreement when Jenkins suggested the Utah Restaurant Association's arguments could be fodder for a future task force.

mikeg@sltrib.com

To encourage tourism and attract conventions, state law allows counties to impose two types of taxes:

* Transient Room Tax is a tax on hotel rooms. Only one-third of the revenue may be used for facilities with the rest going to tourism promotions.

* "Tourism, Recreation, Cultural and Convention" taxes are levied on car rentals (up to 3 percent) and on 1 percent of prepared foods and beverages sold by restaurants.