TO: All Members in Beaver School District

RE: Proposed Tax Increase

Beaver School District will be proposing an increase in property taxes by proposing a judgment levy to refund overpaid taxes. The hearing is scheduled for August 15th at 4:00 p.m. at the district office. Total proposed tax increase is 2.6%.

If approved, the approximate property tax increase for $200,000 property would be $22.33 for primary residences and $40.60 businesses.

The decision to impose a judgment levy is a voluntary one made by local officials. While it is true that the school district does not have a choice in repaying the refund, the school district does have complete discretion as to how the refund will be paid. The refund may be paid out of existing revenues, fund balances, surplus funds, or through temporary reductions in other spending. Imposition of a judgment levy is not the only alternative to refunding the overpaid taxes.

Utah taxpayers are among the most heavily taxed in the nation. Utah's total state and local tax and fee burden is 9th highest in the country and is 12.6% higher than the national average. Higher tax burdens lead to lower long term economic growth, and elected officials should seriously consider the negative impact higher taxes will have on economic growth and future tax revenues.

The Utah Taxpayers Association is concerned that the Beaver School District is proposing a tax increase. The Association encourages all taxpayers to attend the public budget hearing set for 4:00 p.m., August 15th at 291 N. Main in Beaver and make their opinions known.

The Utah Taxpayers Association is a non-profit, non-partisan association working for greater efficiency and economy in government.

     *Please make copies of this Tax Alert and distribute them to
       residents of Beaver School District.