Logan • Officials in one Utah city say they were caught off guard by a new state law requiring places with no homeless services to contribute sales tax revenue to cities with shelters.

Logan Mayor Holly Daines told the Herald Journal that the law passed on the last night of the legislative session will cost her city $100,000 a year, with few options to make up for the lost revenue.

State legislators who sponsored the bill say small cities in Utah have long relied on Salt Lake City and other large municipalities to provide homeless services.

The bill lets the state redirect 1.8 percent of sales tax revenue from cities with no services to help pay for law enforcement and emergency medical service costs in cities that do.