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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 8, 2003

To: All Members in Morgan School District

Re: Proposed Tax Increase

Morgan School District is proposing a 4.1% increase above the district’s certified property tax rate. With new growth and other factors, the district’s property tax revenue will increase 11.2% over last year’s revenues.

Annual Impact of Proposed Morgan School District Tax Increase
Property   $150,000 Valuation   $300,000 Valuation
Residence*   $18.65 increase   $37.29 increase
 Business   $33.90 increase   $67.80 increase
* Residences receive a 45% exemption under state law. Business properties receive no exemptions.

The Utah Taxpayers Association opposes this proposed tax increase for the following reasons:

1. Morgan School District increased property taxes significantly in 2002. Few if any school districts in Utah have increased taxes significantly two years in a row.

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. Unemployment is still at historic highs. Increased taxes only exacerbate these problems and make it more difficult for businesses to hire and keep employees.

3. 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 Morgan School District’s increase.

4. 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.

Morgan School District will be conducting a Truth-in-Taxation hearing at the Morgan School District office.


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