The reason: A proposal being drafted for state lawmakers would base, on wages, a portion of the sales taxes that go to municipalities. The proposal from Sen. Howard Stephenson, R-Draper, calls for retooling the way the Utah Tax Commission distributes sales-tax collections among cities.

Under the plan, 25 percent of that distribution would be based on residents' wages, 50 percent would depend on population and the remainder would be counted by point of sale. Currently, the tax is distributed 50-50 based on population and where the sale takes place. Cities whose population base expands with daytime workers who live elsewhere would come out ahead in the plan. For instance, Salt Lake City would get an additional $9.6 million annually, an increase of 20 percent. Orem would lose nearly $2 million a year, a 13 percent drop.

When members of the RDA and Other Tax Subcommittee approved the drafting of the bill Wednesday, they asked Stephenson to consider incorporating a "hold-harmless" provision that would keep cities from losing sales taxes they already get.

Some lawmakers say the way the state currently distributes sales-tax money encourages cities to entice the construction of retail centers that don't improve Utah's overall economy.

Rep. Scott Wyatt, R-Logan, has another idea for sales-tax distribution. He wants individual counties to decide how sales taxes should be divided. Cache County mayors are interested in seeing the distribution based entirely on population.

Cities along U.S. 89 are annexing land along the highway to push commercial development to boost sales taxes, Wyatt said, but the majority of residents want to see the land remain open.

"If we give [city officials] a different incentive," Wyatt said, "they'll stop."

jsantini@sltrib.com