Wasatch School District is proposing an 8% increase above the district’s certified property tax rate. With new growth and other factors, the district’s property tax revenue will increase 7.4%. The revenue increase is slightly lower than the rate increase because the district’s debt service levy – intended to cover one-time capital expenses – will decrease in 2004.

District officials are proposing increases in the transportation levy, capital outlay levy, board levy, and 10% of basic levy. Nearly two-thirds of the total increase is due to the increased capital outlay levy. The Utah Taxpayers Association is opposed to this tax increase for the following reasons:

1. Wasatch School District significantly increased taxes last year (13.4%). Coupled with this year’s 8% increase, the school district’s combined tax increase will be the highest of any district in the state.

2. Wasatch School District’s proposed rate – excluding the statewide basic levy—is 9% below the statewide average. However, the school district’s assessed property valuation per student is 71% higher than the state average. To generate the same amount of property tax revenue per student as the state average, the district’s tax rate (excluding the statewide basic levy) would be 41% below the state average.

3. From 1997 to 2002, Wasatch School District’s operation expenditures per student, which are primarily related to student instruction, increased at an annualized rate of 7.4%, well in excess of inflation and much higher than the statewide average or the national average (4.9%). Even though Utah’s per student spending is far below the national average, Utah’s taxpayers made significant efforts to increase per student spending during good economic times.

4. 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.

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.

Wasatch School District will be conducting a Truth-in-Taxation hearing on Thursday, August 21st, at 6:00 pm at Wasatch Mountain Jr. High at 200 East 800 South, Heber City, Utah .