Economy of Utah
Encyclopedia
Utah
has a largely mixed economy covering industries like tourism
, mining
, agriculture
, manufacturing, information technology
, finance
, and petroleum production. The majority of Utah's gross state product
is produced along the Wasatch Front
, containing the state capital Salt Lake City.
the gross is state product of Utah in 2010 was $114.5 billion, or almost 1% of the total United States GDP of $14.55 trillion for the same year. The per capita personal income was $36,457 in 2005. Major industries of Utah include: mining, cattle ranching, salt production, and government services.
According to the 2007 State New Economy Index, Utah is ranked the top state in the nation for Economic Dynamism, determined by
In eastern Utah petroleum production is a major industry. Near Salt Lake City, petroleum refining is done by a number of oil companies. In central Utah, coal production accounts for much of the mining activity.
Utah collects personal income tax
at a single rate of 5%, but provides tax credits to low and middle income taxpayers to provide a progressive tax system. The state sales tax
has a base rate of 4.65 percent, with cities and counties levying additional local sales taxes that vary among the municipalities. Property tax
es are assessed and collected locally. Utah does not charge intangible property tax
es and does not impose an inheritance tax
.
As of March 2011, Utah's unemployment rate sits at 7.6%, ranking 17th out of the 50 states and the District of Columbia. 8.0% of Utahns were considered unemployed in March of 2011, compared to the 9.7% in March of 2010.
, corn
and barley
can be produced despite the dry land. Cultivated land, including isolated farms in river valley
s and considerable dry farming acreage, is limited to a small percentage of the state's total area. The bulk of income from agriculture
comes from livestock and livestock products
, including sheep, cattle
, dairying, and an expanding poultry
industry. Abundant sunshine provides some compensation for inadequate rainfall, and the climate
is generally moderate, allowing for substantial fruit production.
, Bryce Canyon, Canyonlands, Capitol Reef, and Zion
), Utah has the third most national parks of any state after Alaska
and California
. In addition, Utah features seven national monuments, two national recreation area
s, six national forests
, and numerous state parks and monuments.
Utah is well known for its winter activities and has seen an increase in tourism since the 2002 Winter Olympics
. Park City
is home to the United States Ski Team
. Utah's ski resorts are primarily located in northern Utah near Salt Lake City, Park City, Ogden
, and Provo
. In 2008, for a second year in a row, Deer Valley
, in Park City, was ranked the top ski resort in North America
by more than 20,000 subscribers of Ski Magazine. In addition to having prime snow conditions and world-class amenities, Northern Utah's ski resorts are well liked among tourists for their convenience and proximity to a large city and International Airport
, as well as the close proximity to other ski resorts, allowing skiers the ability to ski at multiple locations in one day. In Southern Utah, Brian Head Ski Resort
is located in the mountains near Cedar City
.
The 2002 Winter Olympics
were celebrated in Utah and offered a great boon to the economy of the state. Several facilities were built to accommodate the influx of tourism that accompanied and lingered after the Olympics. Former Olympic venues including Utah Olympic Park
and Utah Olympic Oval
are still in operation for training and competition and allows the public to participate in numerous activities including ski jumping
, bobsleigh
, and speed skating
.
Utah features many cultural attractions such as Temple Square
in Salt Lake, the Sundance Film Festival
in Park City, and the Utah Shakespearean Festival
in Cedar City.
Other attractions include Monument Valley
, the Great Salt Lake
, the Bonneville Salt Flats, and Lake Powell
.
Beginning in the late 19th century with the state's mining boom (including the Bingham Canyon Mine
, among the world's largest open pit mines), companies attracted large numbers of immigrants with job opportunities. Since the days of the Utah Territory
mining has played a major role in Utah's economy. Historical mining towns include Mercur
in Tooele County, Silver Reef
in Washington County, Eureka
in Juab County, Park City
in Summit County and numerous coal mining camps throughout Carbon County such as Castle Gate, Spring Canyon, and Hiawatha. These settlements were characteristic of the boom and bust cycle that dominated mining towns of the American West. During the early part of the Cold War
era, uranium was mined in eastern Utah. Today mining activity still plays a major role in the state's economy. Minerals mined in Utah include copper, gold, silver, molybdenum, zinc, lead, and beryllium. Fossil fuels including coal, petroleum, and natural gas continue to play a major role in Utah's economy, especially in the eastern part of the state in counties such as Carbon, Emery, Grand, and Uintah.
.
Utah
Utah is a state in the Western United States. It was the 45th state to join the Union, on January 4, 1896. Approximately 80% of Utah's 2,763,885 people live along the Wasatch Front, centering on Salt Lake City. This leaves vast expanses of the state nearly uninhabited, making the population the...
has a largely mixed economy covering industries like tourism
Tourism
Tourism is travel for recreational, leisure or business purposes. The World Tourism Organization defines tourists as people "traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes".Tourism has become a...
, mining
Mining
Mining is the extraction of valuable minerals or other geological materials from the earth, from an ore body, vein or seam. The term also includes the removal of soil. Materials recovered by mining include base metals, precious metals, iron, uranium, coal, diamonds, limestone, oil shale, rock...
, agriculture
Agriculture
Agriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the...
, manufacturing, information technology
Information technology
Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...
, finance
Finance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...
, and petroleum production. The majority of Utah's gross state product
Gross state product
Gross state product is a measurement of the economic output of a state or province...
is produced along the Wasatch Front
Wasatch Front
The Wasatch Front is a metropolitan region in the north-central part of the U.S. state of Utah. It consists of a chain of cities and towns stretched along the Wasatch Range from approximately Santaquin in the south to Brigham City in the north...
, containing the state capital Salt Lake City.
Economy
According to the Bureau of Economic AnalysisBureau of Economic Analysis
The Bureau of Economic Analysis is an agency in the United States Department of Commerce that provides important economic statistics including the gross domestic product of the United States. Its stated mission is to "promote a better understanding of the U.S...
the gross is state product of Utah in 2010 was $114.5 billion, or almost 1% of the total United States GDP of $14.55 trillion for the same year. The per capita personal income was $36,457 in 2005. Major industries of Utah include: mining, cattle ranching, salt production, and government services.
According to the 2007 State New Economy Index, Utah is ranked the top state in the nation for Economic Dynamism, determined by
"The degree to which state economies are knowledge-based, globalized, entrepreneurial, information technology-driven and innovation-based."
In eastern Utah petroleum production is a major industry. Near Salt Lake City, petroleum refining is done by a number of oil companies. In central Utah, coal production accounts for much of the mining activity.
Utah collects personal income tax
Income tax
An income tax is a tax levied on the income of individuals or businesses . Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate...
at a single rate of 5%, but provides tax credits to low and middle income taxpayers to provide a progressive tax system. The state sales tax
Sales tax
A sales tax is a tax, usually paid by the consumer at the point of purchase, itemized separately from the base price, for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale....
has a base rate of 4.65 percent, with cities and counties levying additional local sales taxes that vary among the municipalities. Property tax
Property tax
A property tax is an ad valorem levy on the value of property that the owner is required to pay. The tax is levied by the governing authority of the jurisdiction in which the property is located; it may be paid to a national government, a federated state or a municipality...
es are assessed and collected locally. Utah does not charge intangible property tax
Intangible asset
Intangible assets are defined as identifiable non-monetary assets that cannot be seen, touched or physically measured, which are created through time and/or effort and that are identifiable as a separate asset...
es and does not impose an inheritance tax
Inheritance tax
An inheritance tax or estate tax is a levy paid by a person who inherits money or property or a tax on the estate of a person who has died...
.
As of March 2011, Utah's unemployment rate sits at 7.6%, ranking 17th out of the 50 states and the District of Columbia. 8.0% of Utahns were considered unemployed in March of 2011, compared to the 9.7% in March of 2010.
Farming
Farming plays an important role in rural Utah. Crops like hayHay
Hay is grass, legumes or other herbaceous plants that have been cut, dried, and stored for use as animal fodder, particularly for grazing livestock such as cattle, horses, goats, and sheep. Hay is also fed to pets such as rabbits and guinea pigs...
, corn
Maize
Maize known in many English-speaking countries as corn or mielie/mealie, is a grain domesticated by indigenous peoples in Mesoamerica in prehistoric times. The leafy stalk produces ears which contain seeds called kernels. Though technically a grain, maize kernels are used in cooking as a vegetable...
and barley
Barley
Barley is a major cereal grain, a member of the grass family. It serves as a major animal fodder, as a base malt for beer and certain distilled beverages, and as a component of various health foods...
can be produced despite the dry land. Cultivated land, including isolated farms in river valley
River Valley
River Valley is the name of an urban planning area within the Central Area, Singapore's central business district.The River Valley Planning Area is defined by the region bounded by Orchard Boulevard, Devonshire Road and Eber Road to the north, Oxley Rise and Mohamed Sultan Road to the east, Martin...
s and considerable dry farming acreage, is limited to a small percentage of the state's total area. The bulk of income from agriculture
Agriculture
Agriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the...
comes from livestock and livestock products
Livestock
Livestock refers to one or more domesticated animals raised in an agricultural setting to produce commodities such as food, fiber and labor. The term "livestock" as used in this article does not include poultry or farmed fish; however the inclusion of these, especially poultry, within the meaning...
, including sheep, cattle
Cattle
Cattle are the most common type of large domesticated ungulates. They are a prominent modern member of the subfamily Bovinae, are the most widespread species of the genus Bos, and are most commonly classified collectively as Bos primigenius...
, dairying, and an expanding poultry
Poultry
Poultry are domesticated birds kept by humans for the purpose of producing eggs, meat, and/or feathers. These most typically are members of the superorder Galloanserae , especially the order Galliformes and the family Anatidae , commonly known as "waterfowl"...
industry. Abundant sunshine provides some compensation for inadequate rainfall, and the climate
Climate
Climate encompasses the statistics of temperature, humidity, atmospheric pressure, wind, rainfall, atmospheric particle count and other meteorological elemental measurements in a given region over long periods...
is generally moderate, allowing for substantial fruit production.
Tourism
Tourism is a major industry in Utah, and is well known for its year-round outdoor recreational activities.. With five national parks (ArchesArches National Park
Arches National Park is a U.S. National Park in eastern Utah. It is known for preserving over 2000 natural sandstone arches, including the world-famous Delicate Arch, in addition to a variety of unique geological resources and formations....
, Bryce Canyon, Canyonlands, Capitol Reef, and Zion
Zion National Park
Zion National Park is located in the Southwestern United States, near Springdale, Utah. A prominent feature of the park is Zion Canyon, which is 15 miles long and up to half a mile deep, cut through the reddish and tan-colored Navajo Sandstone by the North Fork of the Virgin River...
), Utah has the third most national parks of any state after Alaska
Alaska
Alaska is the largest state in the United States by area. It is situated in the northwest extremity of the North American continent, with Canada to the east, the Arctic Ocean to the north, and the Pacific Ocean to the west and south, with Russia further west across the Bering Strait...
and California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
. In addition, Utah features seven national monuments, two national recreation area
National Recreation Area
National Recreation Area is a designation for a protected area in the United States, often centered on large reservoirs and emphasizing water-based recreation for a large number of people. The first National Recreation Area was the Boulder Dam Recreation Area...
s, six national forests
United States National Forest
National Forest is a classification of federal lands in the United States.National Forests are largely forest and woodland areas owned by the federal government and managed by the United States Forest Service, part of the United States Department of Agriculture. Land management of these areas...
, and numerous state parks and monuments.
Utah is well known for its winter activities and has seen an increase in tourism since the 2002 Winter Olympics
2002 Winter Olympics
The 2002 Winter Olympics, officially the XIX Olympic Winter Games, were a winter multi-sport event that was celebrated in February 2002 in and around Salt Lake City, Utah, United States. Approximately 2,400 athletes from 77 nations participated in 78 events in fifteen disciplines, held throughout...
. Park City
Park City, Utah
Park City is a town in Summit and Wasatch counties in the U.S. state of Utah. It is considered to be part of the Wasatch Back. The city is southeast of downtown Salt Lake City and from Salt Lake City's east edge of Sugar House along Interstate 80. The population was 7,558 at the 2010 census...
is home to the United States Ski Team
United States Ski Team
The United States Ski Team, operated under the auspices of the United States Ski and Snowboard Association , develops and supports men's and women's athletes in the sports of alpine skiing, adaptive alpine, freestyle skiing, cross country, adaptive cross country, ski jumping, and nordic combined....
. Utah's ski resorts are primarily located in northern Utah near Salt Lake City, Park City, Ogden
Ogden, Utah
Ogden is a city in Weber County, Utah, United States. Ogden serves as the county seat of Weber County. The population was 82,825 according to the 2010 Census. The city served as a major railway hub through much of its history, and still handles a great deal of freight rail traffic which makes it a...
, and Provo
Provo, Utah
Provo is the third largest city in the U.S. state of Utah, located about south of Salt Lake City along the Wasatch Front. Provo is the county seat of Utah County and lies between the cities of Orem to the north and Springville to the south...
. In 2008, for a second year in a row, Deer Valley
Deer Valley
Deer Valley is an alpine ski resort in the Wasatch Range, located east of Salt Lake City, in Park City, Utah, United States. The resort, known for its upscale amenities, is consistently ranked among the top ski resorts in North America...
, in Park City, was ranked the top ski resort in North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
by more than 20,000 subscribers of Ski Magazine. In addition to having prime snow conditions and world-class amenities, Northern Utah's ski resorts are well liked among tourists for their convenience and proximity to a large city and International Airport
Salt Lake City International Airport
Salt Lake City International Airport is a major public airport in Utah. A joint civil-military facility, it is located in western Salt Lake City, approximately four miles from the central business district...
, as well as the close proximity to other ski resorts, allowing skiers the ability to ski at multiple locations in one day. In Southern Utah, Brian Head Ski Resort
Brian Head Ski Resort
Brian Head Ski Resort, officially called just "Brian Head Resort", is a ski area located at the town of Brian Head, Utah in the southern Wasatch Range at the base of Parowan, Utah, United States. Opened in 1965, it is Utah's highest ski resort...
is located in the mountains near Cedar City
Cedar City, Utah
As of the census of 2000, there were 20,527 people, 6,486 households, and 4,682 families residing in the city. The population density was 1,021.8 people per square mile . There were 7,109 housing units at an average density of 353.9 per square mile...
.
The 2002 Winter Olympics
2002 Winter Olympics
The 2002 Winter Olympics, officially the XIX Olympic Winter Games, were a winter multi-sport event that was celebrated in February 2002 in and around Salt Lake City, Utah, United States. Approximately 2,400 athletes from 77 nations participated in 78 events in fifteen disciplines, held throughout...
were celebrated in Utah and offered a great boon to the economy of the state. Several facilities were built to accommodate the influx of tourism that accompanied and lingered after the Olympics. Former Olympic venues including Utah Olympic Park
Utah Olympic Park
The Utah Olympic Park is a winter sports park built for the 2002 Winter Olympics, and is located east of Salt Lake City near Park City, Utah, United States. During the 2002 games the park hosted the bobsleigh, skeleton, luge, ski jumping, and nordic combined events. It still serves a training...
and Utah Olympic Oval
Utah Olympic Oval
The Utah Olympic Oval, an indoor speed skating oval built for the 2002 Winter Olympics, is located southwest of Salt Lake City, in Kearns, Utah. The Oval hosted the long track speed skating events for the 2002 games. Inside the facility the 400-meter skating track surrounds two international sized...
are still in operation for training and competition and allows the public to participate in numerous activities including ski jumping
Ski jumping
Ski jumping is a sport in which skiers go down a take-off ramp, jump and attempt to land as far as possible down the hill below. In addition to the length of the jump, judges give points for style. The skis used for ski jumping are wide and long...
, bobsleigh
Bobsleigh
Bobsleigh or bobsled is a winter sport in which teams of two or four make timed runs down narrow, twisting, banked, iced tracks in a gravity-powered sled that are combined to calculate the final score....
, and speed skating
Speed skating
Speed skating, or speedskating is a competitive form of ice skating in which the competitors race each other in traveling a certain distance on skates. Types of speed skating are long track speed skating, short track speed skating, and marathon speed skating...
.
Utah features many cultural attractions such as Temple Square
Temple Square
Temple Square is a ten acre complex located in the center of Salt Lake City, Utah, owned by The Church of Jesus Christ of Latter-day Saints . In recent years, the usage of the name has gradually changed to include several other church facilities immediately adjacent to Temple Square...
in Salt Lake, the Sundance Film Festival
Sundance Film Festival
The Sundance Film Festival is a film festival that takes place annually in Utah, in the United States. It is the largest independent cinema festival in the United States. Held in January in Park City, Salt Lake City, and Ogden, as well as at the Sundance Resort, the festival is a showcase for new...
in Park City, and the Utah Shakespearean Festival
Utah Shakespearean Festival
The Utah Shakespeare Festival is a festival of repertory productions of the works of William Shakespeare and other dramatists. The Festival is held during the summer and fall on the campus of Southern Utah University in Cedar City, Utah.-Awards:...
in Cedar City.
Other attractions include Monument Valley
Monument Valley
Monument Valley is a region of the Colorado Plateau characterized by a cluster of vast sandstone buttes, the largest reaching above the valley floor. It is located on the northern border of Arizona with southern Utah , near the Four Corners area...
, the Great Salt Lake
Great Salt Lake
The Great Salt Lake, located in the northern part of the U.S. state of Utah, is the largest salt water lake in the western hemisphere, the fourth-largest terminal lake in the world. In an average year the lake covers an area of around , but the lake's size fluctuates substantially due to its...
, the Bonneville Salt Flats, and Lake Powell
Lake Powell
Lake Powell is a huge reservoir on the Colorado River, straddling the border between Utah and Arizona . It is the second largest man-made reservoir in the United States behind Lake Mead, storing of water when full...
.
Mining
Bingham Canyon Mine
The Bingham Canyon Mine, also known as the Kennecott Copper Mine, is an open-pit mining operation extracting a large porphyry copper deposit southwest of Salt Lake City, Utah, USA, in the Oquirrh Mountains. It is the deepest open-pit mine in the world. The mine is owned by Rio Tinto Group, an...
, among the world's largest open pit mines), companies attracted large numbers of immigrants with job opportunities. Since the days of the Utah Territory
Utah Territory
The Territory of Utah was an organized incorporated territory of the United States that existed from September 9, 1850, until January 4, 1896, when the final extent of the territory was admitted to the Union as the State of Utah....
mining has played a major role in Utah's economy. Historical mining towns include Mercur
Mercur, Utah
Mercur is a historical hard rock mining ghost town located at in Tooele County, Utah, USA. Its elevation from sea level is approximately 2,042m...
in Tooele County, Silver Reef
Silver Reef, Utah
Silver Reef is a ghost town in Washington County, Utah, United States, about northeast of St. George and west of Leeds. Silver Reef was established after John Kemple, a prospector from Nevada, discovered a vein of silver in a sandstone formation in 1866. At first, geologists were uncertain about...
in Washington County, Eureka
Eureka, Utah
Eureka was originally known as Ruby Hollow before it developed into a bustling mining town. Incorporated as a city in 1892, Eureka became the financial center for the Tintic Mining District, a wealthy gold and silver mining area in Utah and Juab counties. The district was organized in 1869 and by...
in Juab County, Park City
Park City, Utah
Park City is a town in Summit and Wasatch counties in the U.S. state of Utah. It is considered to be part of the Wasatch Back. The city is southeast of downtown Salt Lake City and from Salt Lake City's east edge of Sugar House along Interstate 80. The population was 7,558 at the 2010 census...
in Summit County and numerous coal mining camps throughout Carbon County such as Castle Gate, Spring Canyon, and Hiawatha. These settlements were characteristic of the boom and bust cycle that dominated mining towns of the American West. During the early part of the Cold War
Cold War
The Cold War was the continuing state from roughly 1946 to 1991 of political conflict, military tension, proxy wars, and economic competition between the Communist World—primarily the Soviet Union and its satellite states and allies—and the powers of the Western world, primarily the United States...
era, uranium was mined in eastern Utah. Today mining activity still plays a major role in the state's economy. Minerals mined in Utah include copper, gold, silver, molybdenum, zinc, lead, and beryllium. Fossil fuels including coal, petroleum, and natural gas continue to play a major role in Utah's economy, especially in the eastern part of the state in counties such as Carbon, Emery, Grand, and Uintah.
Financial Services
Utah is one of seven states that allows commercially-owned industrial banks, and Salt Lake City contains the headquarters of several industrial banksIndustrial loan company
An industrial loan company or industrial bank is a financial institution in the United States that lends money, and may be owned by non-financial institutions. Though such banks offer FDIC-insured deposits and are subject to FDIC and state regulator oversight, a debate exists to allow parent...
.