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

August 7, 2003

To: All Members in Alpine School District

Re: Proposed Tax Increase

Alpine School District is proposing an 8.8% increase above the district’s certified property tax rate. With new growth and other factors, the district’s property tax revenue will increase 19.3% over last year’s revenues. Of the $9.3 million property tax revenue increase, 37.1% will be used for debt service on the 2001 voter approved bond.



Annual Impact of Proposed Alpine School District Tax Increase
Property   $150,000 Valuation   $300,000 Valuation
Residence*   $52.39 increase   $104.77 increase
 Business   $95.25 increase   $190.50 increase
* Residences receive a 45% exemption under state law. Business properties receive no exemptions.

The Utah Taxpayers Association is especially concerned about tax increases for the following reasons:

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 and make it more difficult for businesses to hire and keep employees.

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 Alpine School District’s increase.

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.

Alpine officials are claiming that taxes need to be raised in order to receive state matching funds through the voted and board leeway programs. However, Alpine could increase the voted and board leeway while decreasing other levies. This would reduce the proposed tax increase while still allowing Alpine to receive state matching funds.

Alpine School District will be conducting a Truth-in-Taxation hearing on Tuesday, August 12th, at 6:00 p.m. at 575 North 100 East, American Fork.



     *Please make copies of this Tax Alert and distribute them to
       residents of the Alpine School District.
The Utah Taxpayers Association is a non-profit, non-partisan association working for greater efficiency and economy in government.