TAX ALERT!
	From The Utah Taxpayers Association
	1578 West 1700 South #201, Salt Lake City, Utah 84104 PH 972-8814 FX 973-2324

TO: All Members in Utah County

RE: Utah County ZAP/PAR Tax Question on November Ballot

Utah County residents will be able to vote on a tax question on the November general election ballot. Officially known as the PAR tax (parks, arts, and recreation) but frequently known as ZAP tax (zoo, arts, and parks), the proposed tax increase, if approved by the voters and the Utah County commissioners, would increase the county-wide sales tax rate from 6.25% to 6.35% and would generate approximately $4.5 million annually.

The Utah Taxpayers Association strongly opposes the ZAP tax for the following reasons:

• 1 Taxes need to be reduced, not increased. Utahns bear the 9th highest tax and fee burden in the nation. Even a small tax increase is a step in the wrong direction, especially during troubled economic times when Utah’s bankruptcy rate leads the nation.
  
  
• 2 Cities already have the means to raise property taxes to fund arts and recreation. An additional county-wide tax increase is not necessary.
  
  
• 3 If approved, the ZAP/PAR tax would be increased over time. Currently, state law caps the ZAP tax at 0.1% of taxable sales. However, as more groups become dependent on government funds, legislators will be pressured to increase the allowable rate.
  
  
• 4 Government should prioritize spending with existing revenues and live within its own means. Government cannot possibly satisfy every need and want, even if tax rates were increased to 100% of income.
  
  

ZAP proponents claim that increased spending on recreation reduces costs associated with crime and law enforcement. However, if this is indeed true, and this claim is certainly dubious, then increased arts spending should come from other government services whose costs, according to ZAP promoters, should be decreasing as recreation funding increases.

ZAP proponents also argue that raising the sales tax rate is good policy because tourists and other visitors will pay the tax. However, Utah County residents and businesses will pay the majority of this tax, and raising the tax because “outsiders” will pay a small portion is not good tax policy.

ZAP proponents are claiming that Utah County residents are already paying the tax when they shop in Salt Lake County but receive none of the benefits. However, ZAP taxes paid to Salt Lake County by Utah County residents will remain in Salt Lake County whether or not Utah County imposes its own ZAP tax.

The Utah Taxpayers Association urges its members to vote NO on the ZAP/PAR tax question on the November ballot.