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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 13, 2003

Garfield School District is proposing a 7.6% increase above the district’s certified property tax rate. With new growth and other factors, the district’s property tax revenue will increase 23.6%.

Annual Impact of Proposed Garfield School District Tax Increase
Property   $150,000 Valuation   $300,000 Valuation
Residence*   $49.67 increase   $99.33 increase
 Business   $90.30 increase   $180.60 increase
* Residences receive a 45% exemption under state law. Business properties receive no exemptions.

The Utah Taxpayers Association is opposed to this tax increase for the following reasons:

1. If approved, Garfield School District’s local property tax rate (excluding statewide basic levy) will be 36% higher than the statewide average. Since the district’s assessed property valuation per student is 19% higher than the statewide average, Garfield’s property tax rate could be 16% lower than the state average and still generate as much property tax revenue per student as the statewide average. In other words, to generate the same amount of property tax revenue per student as the state average, Garfield’s proposed property tax rate is 62% higher than is needed.

2. Garfield’s spending per student increased at an annualized rate of 9.2% from 1997 to 2002. This rate is well in excess of inflation and much higher than per student spending growth in Utah and the nation.

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 Garfield 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.

Garfield School District will be conducting a Truth-in-Taxation hearing on Thursday, August 21st, at 7:00 pm at the Bryce Valley High School Auditorium, Tropic, Utah .


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