New Company, Facility Fee LLC, Helps Utah Businesses Utilize Tax Provision that Saves Businesses Big Bucks

Utah law allows businesses to deduct the cost of a facility before determining sales tax on revenue.

Salt Lake City, UT, March 24, 2024 --( Daniel Darger and Kraig Raines, residents of Salt Lake City, Utah founded Facility Fee LLC in early 2024 to help Utah businesses implement a tax provision that exempts sales tax on the facility expense if the business can separate the revenue received for the product from what it pays for the facility from which the product is sold.

Locally owned and operated businesses are the foundation of every community and should utilize every tax advantage possible and the facility tax provision could save Utah retail businesses thousands of dollars every month. These businesses including restaurants, reception centers, retail, salons, and recreation facilities are the most vulnerable with acute exposure to market shifts, pandemics, weather, and costs of goods and labor.

Darger is no stranger to the challenges of retail enterprise. Long-time operator of two of downtown Salt Lake’s legacy entertainment and dining destinations, the Dead Goat Saloon (1998-2004) and Blue Iguana restaurant (1998-2014), he learned some valuable facts about Utah tax law and subsequently increased his hard-earned margins with a minimal restructuring of his bookkeeping and tax filing.

As a career corporate and criminal attorney, he wasn’t willing to be shifty in the eyes of any law, tax, or otherwise. He vetted the sound guidance of events coordinators at the Salt Palace in renting portions as well as the entire space of both the Dead Goat Saloon and Blue Iguana restaurant to Outdoor Retailer convention exhibitors such as Jan Sport and Canoe & Kayak magazine. Once familiar with the mechanics of separating facility fees from food and service, his tax burden was significantly reduced.

Now retired, Darger was commiserating with a friend who operates a restaurant and the two began discussing the Facility Fee tax law and after thorough checking, found the law to be the same. Darger asked for a revenue ruling regarding the sale of food in conjunction with the sale of a space to eat it and learned that applying the Facility Fee concept to the day-to-day running of a restaurant is consistent with Utah tax law.

Darger says, “Since I helped my restaurant-operating friends adopt the Facility Fee, they report reducing their sales tax obligations by thousands of dollars a month,” and continues, “It seems to me that business operators that rent a facility for use in operating that business owe it to investors and themselves to take advantage of every legal tax exemption available and the Facility Fee is one of them.”

Raines says, “We see that the Facility Fee tax law applies to most retail businesses, so we founded Facility Fee LLC to guide Utah businesses through the process. Businesses who implement this provision will save thousands of dollars that otherwise would be paid in taxes,” concludes Raines.

Learn more at
Facility Fee LLC
Susen Sawatzki