Ken Bullock, executive director of the Utah League of Cities and Towns, said Ivory "is taking on a more complex issue than he may realize," and his bill "would upset a very delicate balance that has been worked out through the years."
Cities with many car dealerships — such as Sandy and Murray — get a lot of sales tax from big-ticket car sales there, but they also have added expenses, he said. They must provide extra police, street maintenance and other services to handle the dealerships, so it may not be fair to take tax revenues from them.
"There's a difference between their daytime and nighttime populations," he said, adding they need a way to fund the larger daytime population created by shoppers and workers.
But Ivory said he wants to create a discussion about whether the existing tax system is fair to bedroom communities like West Jordan.
He said current law does not allow auto dealers within a certain number of miles of each other, unless dealers agree to it. Dealerships are "a substantial economic engine" that "bring Costcos, and bring theaters, and bring restaurants and all the rest," Ivory said.
He said he would like to see changes either to more easily allow dealerships in his city, or move their sales tax revenue to the city where a buyer resides.