TO: All Members in North Summit School District

RE: Proposed Tax Increase

North Summit School District will be proposing an increase in property taxes as part of the 2002-03 budget at its meeting on August 13th at 7:30 p.m. at the district offices at 75 East 100 South, Coalville. School district officials are proposing an increase of the board leeway from zero to 0.0004 which would increase the total school district property tax rate by 6.9%

If the tax increase is approved, school district officials intend to use the additional revenue for teacher salaries.

If approved, the approximate property tax increase for $150,000 property would be $33 for primary residences and $60 businesses.

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

North Summit School District enjoys an assessed property valuation per student that is 54% higher than the state average. This means that North Summit can impose a tax rate that is 35% lower than the state average and still generate as much tax revenue per student as the state average. This built-in advantage should be an opportunity for District officials to impose tax rates that are much lower than the state average. With the proposed 6.9% tax increase, however, North Summit's tax rate will be nearly the same as the state average.

The Utah Taxpayers Association is concerned that the North Summit School District is proposing a tax increase. The Association encourages all taxpayers to attend the public budget hearing set for August 13th and make their opinions known..

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