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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 20, 2003

Davis School District is proposing a 1% increase above the district’s certified property tax rate. The increased revenue will be used to fund recreation programs.

Annual Impact of Proposed Davis School District Tax Increase
Property   $150,000 Valuation   $300,000 Valuation
Residence*   $6.44 increase   $12.87 increase
 Business   $11.70 increase   $23.40 increase
* Residences receive a 45% exemption under state law. Business properties receive no exemptions.

The Utah Taxpayers Association has concerns about the proposed tax increase:

1. Davis School District operation expenditures per student, largely instructional costs, increased at an annualized rate of 6.2% from 1997 to 2002, well in excess of inflation. During strong economic times, state and county taxpayers significantly increased spending for education.

2. Too many local governments in Davis County are raising taxes or are suggesting tax increases. Last year Farmington City and Davis County imposed massive tax increases. This year, Davis School District is raising taxes. Next year a sales tax increase for arts and recreation and a property tax increase for a new county jail will be on the ballot. Many of these tax increases are large, but even small tax increases, including those that are dismissed as costing taxpayers “only a candy bar per day”, add up to large tax burdens.

3. 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.

4. Federal tax cuts, which are intended to stimulate the economy, are being offset by local tax increases, such as Davis School District’s tax increase.

5. 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.

Davis School District will be conducting a Truth-in-Taxation hearing at 6:00 pm on Tuesday, August 26th, at the school district offices at 45 East State Street in Farmington.


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