January 28, 2003

To: All Members in Granite School District

Re: Proposed Tax Increase and Bond Election

Granite School District is proposing a 0.000200 increase in the voted leeway. If approved, the tax increase would generate $2.8 million additional revenue for the school district. Property taxes would increase by $17.60 for a $160,000 home and $32.00 for a $160,000 business.

The Utah Taxpayers Association urges voters to reject this proposed tax increase:

1. If approved, Granite’s voted leeway and board leeway tax yield per student would be 6% higher than the valuation-weighted statewide average (which includes 10% of basic for those districts that use this levy for operation purposes).

2. Utah is currently experiencing severe economic problems. Utah’s per capita bankruptcy rate is highest in the nation and is twice the national average.

3. Utah’s total state and local tax and fee burden as a percent of personal income is 9th highest in the nation and is 12.6% higher than the national average. Higher tax burdens lead to lower long term economic growth. A tax increase at this time, even a small increase, is not appropriate. Over time, small tax increases add up to heavy tax burdens.

4. Granite School District should have conducted the voted leeway election in November to coincide with the general election. This would have ensured higher voter turnout. A February election ensures lower voter turnout which means that district employees will have a larger impact on the election’s outcome.