TO: All Members in Utah County

RE: ZAP Tax Proposal in Utah County

Utah County commissioners will be conducting a public meeting to discuss placing a ZAP (Zoo, Arts, and Parks) tax proposal before the voters of Utah County in the November general election. The proposed tax increase would increase the county-wide sales tax rate from 6.25% to 6.35% and would generate approximately $4.5 million annually. The hearing will take place at 8 p.m. on Wednesday, August 21at the county administration building located at 100 E. Center Street in Provo.

The ZAP tax is being promoted by city councils throughout the county as well as private arts organizations who would be recipients of the tax revenue. The Daily Herald has also editorialized in favor of this tax increase on several occasions. Promoters of this tax are claiming that the tax increase is so small that no one would notice. Some supporters are also claiming that spending public money on the arts reduces the need to spend tax dollars on fighting crime and other social ills.

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

1. Utah's total state and local tax and fee burden as a percentage of personal income is 9th highest in the nation and is 12.6% higher than the national average. State and local leaders should be focusing on gradually reducing the tax burdens of a comparatively overtaxed citizenry instead of gradually increasing them.

2. Despite the claims of ZAP tax promoters, the most effective method of decreasing crime and other social ills is to create a vibrant economy that creates jobs for all able and willing citizens. Raising taxes on an already overburdened citizenry decreases long term economic growth. New government programs are always promoted as "paying for themselves", but the economic track record indicates otherwise. In 1960, total state and local expenditures in the U.S. were 12.3% of total personal income. Currently, state and local government spending exceeds 18% of personal income. If these social programs had been paying for themselves over the years, government spending as a percent of personal income would have remained constant or even decreased instead of increasing.

3. If the ZAP tax is approved, the ZAP tax rate will most likely be increased over time to accommodate the increased demands from special interest groups who have become increasingly dependent on taxpayers' money.

4. All levels of government - federal, state, and local - are experiencing difficulty in funding existing programs with existing revenues. Public education, higher education, and transportation continue to clamor for additional funding. Under these circumstances, creating new taxes to fund new programs makes little sense.

The Utah Taxpayers Association encourages all Utah County taxpayers who support fiscally responsible government policies to attend the hearing and make their opinions known.

     *Please make copies of this Tax Alert and distribute them to
       residents of Utah County.