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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

Tooele School District is proposing a 3.51% increase above the district’s certified property tax rate. With new growth and other factors, the district’s property tax revenue will increase 4.3%.

Annual Impact of Proposed Tooele School District Tax Increase
Property   $150,000 Valuation   $300,000 Valuation
Residence*   $24.92 increase   $49.83 increase
 Business   $45.30 increase   $90.60 increase
* Residences receive a 45% exemption under state law. Business properties receive no exemptions.

School district officials are incorrectly claiming that property taxes are not being increased because this year’s proposed tax rate is the same as last year’s adopted rate. In accordance with Utah’s Truth-in-Taxation property tax laws, property tax rates decrease as valuations of existing property increase. This prevents local governments from receiving an automatic revenue windfall simply because property valuations have increased. Property taxes should not increase simply because valuations have increased since increased valuations are not an indication of an increased ability of property owners to pay additional property taxes.

The Utah Taxpayers Association is opposed to this tax increase 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. Federal tax cuts, which are intended to stimulate the economy, are being offset by local tax increases, such as Tooele School District’s tax 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.

Tooele School District will be conducting a Truth-in-Taxation hearing on Tuesday, August 19th, at 6:00 pm at 66 West Vine Street, Tooele, Utah .


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