DOG1.jpg (8070 bytes)
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 Nebo School District

Re: Proposed Tax Increase

Nebo School District is proposing a 1.5% increase above the district’s certified property tax rate. With new growth and other factors, the district’s property tax revenue will increase 7% over last year’s revenues. District officials are proposing increases in the tort liability levy, voted leeway, and the board levy.

Annual Impact of Proposed Nebo School District Tax Increase
Property   $150,000 Valuation   $300,000 Valuation
Residence*   $9.82 increase   $19.64 increase
 Business   $17.85 increase   $35.70 increase
* Residences receive a 45% exemption under state law. Business properties receive no exemptions.

The Utah Taxpayers Association is concerned about this proposed tax increase for the following reasons:

1. District officials are stating that increases in the voted leeway and board levy are needed into order to receive state matching funds. However, the district can still receive state matching funds by offsetting the voted and board increases by decreasing other levies.

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 Nebo 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.

Nebo School District will be conducting a Truth-in-Taxation hearing


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