But there is disagreement on Capitol Hill about who should pay to expand the Salt Palace, or, to be more accurate, how much each level of government - local, county and state - should chip in.

So far, the state, which collects about half of the sales tax revenues from Salt Palace events, will contribute nothing. Salt Lake County, which collects about 29 percent of the sales tax revenues, would put up the biggest share of the building funds, partly through a 1 percent increase in the transient room tax, which is paid by hotel guests.

Salt Lake City officials say they are willing to do their part, in proportion to the 15 percent of sales tax revenues they collect. But they say the mechanism the current Senate bill proposes will rob their general fund of roughly $1.9 million a year, something the city can't afford. To make up the difference, the city would have to raise property taxes or cut basic services.

City officials are pleading with the Legislature to let them raise their share of the money through some means other than tapping revenues from the innkeeper's tax, as Senate Bill 211 now proposes. We believe the city has a point.

Government leaders still are negotiating the final shape of the Salt Palace funding bill. We would hope that a final accommodation would allow the city to come up with its portion of the financing plan in a way that would not cut into its general fund. There have been proposals to get the money from redevelopment agency funds, or from an increase of .09 percent in the general sales tax in the downtown business district, or from sources within the city budget other than the general fund.

City officials are in the best position to make this call.

People probably assume that since the Salt Palace is located in the city, the city government and city residents benefit most from its operations. But in terms of sales-tax revenues, at least, it is not that simple. All Utahns benefit from these tax revenues, as do all people in Salt Lake County.

Which raises the question of why the state government, which collects the most from Salt Palace business, is contributing virtually nothing to the building program. The last time the facility was expanded, the state kicked in about half the cost, and the county and the city RDA each came up with about a quarter.

Even a modest state contribution now would help the city bridge the gap.