August 4, 2003

To: All Members in Salt Lake City and Salt Lake City School District

Re: Proposed Tax Increase

Salt Lake City and Salt Lake City School District are proposing to increase property taxes by imposing a judgment levy. The judgment levies will raise $593,988 for the school district, $748,335 for the city’s general fund, and $106,905 for the city library. The tax impact on residential and business properties is as follows:

1. Utah is currently experiencing severe economic problems. Utah’s per capita bankruptcy rate is highest in the nation and is twice the national average. Unemployment is still at historic highs. Increased taxes only exacerbate these problems.

2. In order to stimulate the economy, the federal government has significantly reduced taxes. However, much of this economic stimulus is being reduced by state and local tax increases, such as the increases proposed by the city and the school district.

3. Utah’s total state and local tax and fee burden as a percent of personal income is 10th highest in the nation and is 12.5% higher than the national average. Higher tax burdens lead to lower long term economic growth.

Truth-in-Taxation hearings will be held as follows:

Salt Lake City School District: Tuesday, August 5th at 7:00 p.m., board room at the Salt Lake City School District

Salt Lake City: Tuesday, August 12th, 7:00 p.m. in the City Council Chambers at the City and County Building, Room 315, 451 S. State Street, SLC.